LLQP Accident & Sickness · Component 1.2 · 35% of the exam
A client's existing individual DI policy is 'guaranteed renewable'. In the review this means the insurer:
- AMay cancel or refuse renewal at any anniversary with written notice
- BMust reduce premiums as the client ages because the benefit period shortens
- Must renew to the stated age but may change premiums for the whole class
- DMay not change premiums, provisions or renewability for the life of the policy
Correct answer: C) Must renew to the stated age but may change premiums for the whole class
Guaranteed renewable protects the right to keep coverage; non-cancellable also locks the premium. The distinction affects the certainty of the client's long-term cost.
Why the other options are wrong
- AThe insurer cannot cancel a guaranteed renewable policy while premiums are paid.
- BThere is no obligation to reduce premiums; class premiums may rise.
- DThat describes non-cancellable coverage, which also locks the premium.
Exam tip
GR = coverage guaranteed, premium not. Non-can = both guaranteed.
Common mistake
Telling a client with a GR policy that their premium can never change.
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.