Life License Qualification Program (LLQP) Practice Exam

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Study for the Life License Qualification Program (LLQP) Exam. Prepare with flashcards and multiple choice questions, each question comes with hints and explanations. Get ready for a successful exam experience!

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Which area of state regulation is NOT protected by the savings clause in ERISA?

Insurance
Commerce
Banking
Securities

The correct answer is: Commerce

The savings clause in the Employee Retirement Income Security Act (ERISA) is designed to safeguard certain areas of state regulation from federal preemption. This clause specifically protects state laws that regulate insurance, banking, or securities, thereby allowing those laws to coexist alongside federal regulations without being overridden. The area of commerce, however, is not protected by the savings clause. Federal law often has primacy in matters concerning interstate commerce, and this allows Congress to enact regulations that can supersede state laws in this area. Consequently, when considering the focus of ERISA, the commerce-related regulations may still be subject to federal oversight and are not safeguarded to the same extent as the other areas mentioned. This distinction is important for understanding the balance of power and regulatory authority between state and federal laws, particularly in the context of employee benefits and retirement plans.