LLQP Life Insurance · Component 2.1 · 30% of the exam
Which of the following is a common exclusion in group life and AD&D coverage?
- ADeath from cancer diagnosed within the first two years of membership, since the condition may have existed before the member enrolled
- Self-inflicted injury, war or certain aviation for AD&D, and suicide within the exclusion period
- CDeath of a married member, since the spouse is expected to have separate coverage under the dependent life benefit
- DDeath after age 40, since the plan's basic amount is designed for younger employees with growing families
Correct answer: B) Self-inflicted injury, war or certain aviation for AD&D, and suicide within the exclusion period
AD&D exclusions target non-accidental or excluded causes; group life exclusions are narrow and usually limited to suicide within a set period. Illness is covered by group life (not AD&D).
Why the other options are wrong
- AIllness is covered by group life.
- CMarital status is irrelevant.
- DAge reductions exist, but death after 40 is not excluded.
Exam tip
Know the standard exclusions: self-inflicted injury, war, aviation (AD&D); suicide within the period (life).
Common mistake
Assuming group life has the same broad exclusions as AD&D.
What this tests
CISRO competency component 2.1 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Life Insurance module. Written against the published curriculum.
More from component 2
- A client has a need lasting about twenty years and compares a ten-year and a twenty-year term policy. The main point to explain is that:
- A client exercises the conversion privilege on his term policy. The permanent premium will be based on:
- A client notices that a small policy costs proportionately more per unit of coverage than a larger one. The explanation is that:
- A client wants to pay monthly rather than annually. The agent should explain that monthly payment:
- A client asks why dividends from her participating policy are not taxed like interest from a bank. The reason is that a dividend is:
- A universal life policyholder is choosing among the investment options inside her policy. She should understand that:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.