LLQP Accident & Sickness · Component 4.1 · 10% of the exam
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:
- AThe insurer must keep the policy in force, since a non-cancellable contract cannot lapse while a claim is disputed
- BNothing will happen, since the insurer cannot enforce premium payment while it is refusing to pay a claim
- CThe premium is waived automatically as soon as a claim is filed, whether or not the insurer has approved it
- The policy will lapse after the grace period regardless of the dispute, so premiums should continue
Correct answer: D) The policy will lapse after the grace period regardless of the dispute, so premiums should continue
Non-payment causes lapse. Waiver applies only once disability is accepted. Continuing payment protects the contract.
Why the other options are wrong
- ANon-can does not mean free.
- BLapse is the consequence.
- CWaiver requires an approved claim.
Exam tip
Keep paying during a dispute; waiver only after claim approval.
Common mistake
Advising a client to withhold premiums in protest.
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:
- 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:
- A client's non-cancellable disability policy reaches the expiry age stated in the contract. At that point:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.