LLQP Accident & Sickness · Component 4.1 · 10% of the exam
A client asks the agent to cancel her critical illness policy because money is tight. The agent should first:
- ASuggest she stop paying, so the policy lapses at the end of the grace period without paperwork
- BRefuse, since the needs analysis on file shows the coverage is still required by the client
- CProcess the cancellation promptly, since the client has given a clear and lawful instruction
- Explore whether a reduced amount, a different payment mode or another change would help
Correct answer: D) Explore whether a reduced amount, a different payment mode or another change would help
Cancellation forfeits insurability that may be irreplaceable, so the agent should test whether a smaller or cheaper version of the coverage would meet the client's cash-flow problem.
Why the other options are wrong
- ADeliberate lapse forfeits the client's options and any values in the contract.
- BThe client is entitled to cancel after receiving advice.
- CProcessing without exploring alternatives fails the duty to advise.
Exam tip
Look for a smaller policy before you cancel one.
Common mistake
Cancelling coverage a client could have kept in reduced form.
What this tests
CISRO competency component 4.1 — Provide customer service during the validity period of the coverage — which is weighted at 10% of the Accident & Sickness module. Written against the published curriculum.
More from component 4
- The agent's role in the claims process is to:
- A client with a non-cancellable DI policy stops paying premiums after a dispute with the insurer about a claim. The agent should warn that:
- When a client moves to another province, the agent should:
- A client asks to reduce the waiting period on his in-force disability policy. The agent should explain that the change:
- A client's disability policy lapsed six weeks ago for non-payment. The agent should:
- A client on claim asks whether she must keep paying premiums. The accurate answer depends on:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.