LLQP Accident & Sickness · Component 4.1 · 10% of the exam
A client's disability policy has been in force for three years and he asks to increase the benefit. The agent should explain that:
- AThe existing benefit must be reduced by the same amount, since the total is fixed at issue
- The increase requires a new application with medical and financial evidence, unless an option applies
- CIncreases are automatic on request, since the insurer has already accepted the risk at issue
- DIncreases can only be made within the first two years, while the contract still remains contestable
Correct answer: B) The increase requires a new application with medical and financial evidence, unless an option applies
New coverage is new risk, so the insurer assesses health and earnings again unless the client holds a rider that waives the medical requirement.
Why the other options are wrong
- AThe existing benefit is unaffected by a request to add more.
- CNothing that adds coverage happens automatically.
- DNo rule confines increases to the contestability period.
Exam tip
More coverage means more underwriting, unless an option covers it.
Common mistake
Promising an increase without checking whether an option exists.
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.