LLQP Accident & Sickness · Component 4.1 · 10% of the exam
A client asks to reduce his DI benefit to save premium. The agent should:
- ACancel the policy and issue a new one for the lower amount, so that the premium reflects the current benefit
- Review whether the need has changed, explain that restoring the benefit later needs underwriting, and document
- CIncrease the waiting period instead without asking, since that achieves the same saving with less loss
- DRefuse the reduction, since the original benefit was set by a needs analysis the client agreed to
Correct answer: B) Review whether the need has changed, explain that restoring the benefit later needs underwriting, and document
Reductions are the client's right but have consequences. Alternatives (longer waiting period, removing riders) may achieve savings with less loss.
Why the other options are wrong
- AReduction is not cancellation.
- CChanges require the client's agreement.
- DThe client may reduce coverage.
Exam tip
Reductions: review need, offer alternatives, document, warn about re-underwriting.
Common mistake
Processing a reduction without discussing cheaper alternatives.
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.