LLQP Life Insurance · Component 1.1 · 35% of the exam
For a group client, 'vulnerability to termination' refers to:
- The risk that the group plan itself could be discontinued by the sponsor or the insurer, leaving members without coverage
- BThe risk that a member is dismissed by the employer and loses the coverage that came with the job
- CThe risk of a claim being denied because the member's certificate had lapsed before the death
- DThe risk that the agent loses the account to a competitor at the next renewal of the plan, leaving members without a servicing agent
Correct answer: A) The risk that the group plan itself could be discontinued by the sponsor or the insurer, leaving members without coverage
The curriculum lists vulnerability to termination under the group client's situation. Plans can end when a sponsor cuts costs or an insurer declines to renew; members then depend on conversion privileges and their own coverage.
Why the other options are wrong
- BIndividual dismissal ends one member's coverage, not the plan.
- CClaim denial is a contract issue, not plan termination.
- DThe agent's book is not the point.
Exam tip
Group coverage can vanish with the plan; that vulnerability is why members still need individual coverage.
Common mistake
Assuming an employer plan is a permanent feature of a member's protection.
What this tests
CISRO competency component 1.1 — Assess the client's needs and situation — which is weighted at 35% of the Life Insurance module. Written against the published curriculum.
More from component 1
- A client's existing policies were all sold by another agent who has left the business. The reviewing agent should:
- A client supports an adult child with a permanent disability who will never be self-sufficient. In the needs analysis this is:
- A self-employed client's income fluctuates widely year to year. When determining the income to replace, the agent should:
- A 58-year-old client plans to retire at 65 and has a pension that will pay a survivor benefit. How does time to retirement affect the life insurance need?
- Which of the following is a capital expense arising at death, rather than an ongoing income need?
- A client is the sole income earner in a household with a stay-at-home spouse and two young children. The greatest risk that life insurance on the client addresses is:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.