LLQP Life Insurance · Component 1.2 · 35% of the exam
In assessing existing group life coverage, why does the agent record the plan's 'end date' or termination provisions?
- AGroup coverage never ends, so the date is recorded only for the insurer's administrative purposes
- BIt is required by FINTRAC, which tracks the termination of group plans as part of its reporting regime
- Because group life typically terminates or reduces at a set age or retirement, leaving an unexpected gap
- DBecause the client must repay the premiums the employer contributed if the coverage ends before retirement
Correct answer: C) Because group life typically terminates or reduces at a set age or retirement, leaving an unexpected gap
Many group plans end at retirement or reduce the face amount at 65 or 70. A client counting on group coverage into old age may find it gone exactly when estate needs arise. Knowing the end date lets the agent plan a replacement in time.
Why the other options are wrong
- AGroup coverage does end, at termination, retirement or a stated age.
- BFINTRAC governs money-laundering reporting, not group plan provisions.
- DMembers do not repay premiums at termination.
Exam tip
Ask when group life ends or reduces; the answer is often 65 or retirement, exactly when estate needs begin.
Common mistake
Assuming group life continues into retirement.
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.