LLQP Accident & Sickness · Component 4.1 · 10% of the exam
A client asks to increase her DI benefit two years after issue without an FPO rider. The agent should explain that the increase:
- Requires a new application with full underwriting; the added amount may be rated, excluded or declined
- BIs impossible, since a disability benefit is fixed at issue and can never be changed by any means afterwards
- CIs automatic on request, since the insurer accepted the risk at issue and the client's occupation is unchanged
- DReduces the original benefit, since the insurer will re-underwrite the whole policy at the client's current age
Correct answer: A) Requires a new application with full underwriting; the added amount may be rated, excluded or declined
Without FPO, increases are new coverage. The original policy is unaffected. The curriculum lists validating contract amendments.
Why the other options are wrong
- BIncreases are possible with underwriting.
- CNothing is automatic without a rider.
- DThe original stays as is.
Exam tip
Increase without FPO = new underwriting on the increase only.
Common mistake
Telling a client an increase is 'just a 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.