LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client's existing coverage includes a critical illness policy with a 'return of premium on expiry' rider. The review should note that:
- AThe rider also pays a disability benefit if the insured cannot work
- BThe rider refunds premiums immediately if the client cancels at any time, since the money remains hers
- CThe rider pays the refund on diagnosis of a covered condition
- Premiums are refunded at expiry if no claim was made, so cancelling early forfeits them
Correct answer: D) Premiums are refunded at expiry if no claim was made, so cancelling early forfeits them
ROP on expiry vests only at the end. A client considering cancellation should know the timing. The curriculum lists ROP among riders and the tax-free return of premium benefit.
Why the other options are wrong
- AReturn of premium has nothing to do with disability.
- BThe refund vests only at expiry, not on early cancellation.
- CA claim ends the refund entitlement; the rider pays only if no claim was made.
Exam tip
ROP riders: check when the refund vests before advising any change.
Common mistake
Cancelling a CI policy shortly before its ROP vests.
What this tests
CISRO competency component 1.2 — Assess the client's needs and situation — which is weighted at 35% of the Accident & Sickness module. Written against the published curriculum.
More from component 1
- The single most important fact for sizing a client's disability income need is:
- A client's beneficiaries for assets are listed in the fact-finding. Why does this matter for A&S planning?
- A client asks why the agent wants to know how assets are owned (jointly or individually). In the A&S context the answer is:
- A client mentions a back injury five years ago that fully resolved. The agent should:
- Which element of a client's situation most affects the definition of disability that should be recommended?
- Which of the following health facts is most relevant to a client's disability insurance situation?
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.