LLQP Accident & Sickness · Component 4.1 · 10% of the exam
A client's long-term care policy includes an inflation protection option she declined at issue. At review the agent should:
- Explain that adding it now, if permitted, requires underwriting and costs more at her current age
- BTell her the option is no longer available under any circumstances once it has been declined
- CRecommend cancelling the contract and buying a new one with indexing already included
- DAdvise that the option can be added at any time at the premium that applied at the original issue age
Correct answer: A) Explain that adding it now, if permitted, requires underwriting and costs more at her current age
Adding a benefit after issue increases the insurer's exposure, so it is underwritten and priced at the attained age, and it may not be available at all in some contracts.
Why the other options are wrong
- BSome contracts permit additions on evidence; a blanket refusal overstates the position.
- CReplacement forfeits the original issue age and restarts contestability.
- DAdditions are priced at the client's current age, not the original one.
Exam tip
Anything added later is priced and underwritten later.
Common mistake
Assuming a declined option can be picked up later on the original terms.
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.