LLQP Accident & Sickness · Component 4.1 · 10% of the exam
A client's DI policy is guaranteed renewable and the insurer announces a class premium increase. The agent should explain:
- The increase is permitted for the class; the client may pay it, reduce coverage, or shop alternatives
- BThe policy is cancelled, since a guaranteed renewable contract ends when the insurer changes the premium
- CThe increase is illegal, since guaranteed renewable policies lock the premium for the life of the contract
- DThe client can refuse the increase and keep paying the old premium, since the policy guarantees renewal
Correct answer: A) The increase is permitted for the class; the client may pay it, reduce coverage, or shop alternatives
GR policies guarantee renewal, not price. Options at renewal are the service conversation.
Why the other options are wrong
- BRenewal is guaranteed.
- CClass increases are contractual.
- DPayment at the new rate is required to continue.
Exam tip
GR class increase: keep, reduce or shop.
Common mistake
Telling a GR client their premium was guaranteed.
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.