LLQP Life Insurance · Component 1.2 · 35% of the exam
In an existing-coverage review, the agent finds the client's group life includes a waiver of premium provision. This means:
- AThe coverage doubles during the disability, since the member is at greater risk of death while unable to work at their occupation
- BThe employer is refunded the premiums paid during the member's disability, since the insurer bears the risk
- If the member becomes totally disabled, group life continues without premium, often to a stated age
- DThe member never pays premiums for group life, since the waiver provision applies to every member from enrolment
Correct answer: C) If the member becomes totally disabled, group life continues without premium, often to a stated age
Group waiver of premium keeps a disabled member's life coverage in force when they can no longer work, subject to the plan's definition and age limit. It is a valuable provision to note when a client has an existing disability.
Why the other options are wrong
- ACoverage continues; it does not double.
- BThere is no refund to the employer.
- DWaiver applies only during qualifying disability.
Exam tip
Group waiver of premium preserves life coverage for disabled members; check its age limit.
Common mistake
Assuming a disabled member's group life ended with their employment.
What this tests
CISRO competency component 1.2 — 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.