LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A 'conditionally renewable' disability policy:
- AIs the same as a non-cancellable policy, since renewal is guaranteed under both provisions
- BHas a premium fixed at issue that cannot change as long as the stated conditions are met
- CCannot be cancelled by the insurer at any time or for any reason while premiums are paid
- Can be renewed only while the insured meets stated conditions, such as working full-time
Correct answer: D) Can be renewed only while the insured meets stated conditions, such as working full-time
Conditionally renewable sits between cancellable and guaranteed renewable. Coverage depends on conditions outside the insurer's discretion but tied to the insured's status.
Why the other options are wrong
- ANon-cancellable is far stronger; it guarantees both coverage and premium.
- BThe premium is not guaranteed under conditionally renewable terms.
- CRenewal can be refused if the conditions fail.
Exam tip
Conditionally renewable: renewal depends on stated conditions (e.g., still working).
Common mistake
Overlooking renewal conditions in an association or simplified-issue plan.
What this tests
CISRO competency component 2.1 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Accident & Sickness module. Written against the published curriculum.
More from component 2
- A group benefits booklet lists AD&D coverage alongside life and LTD. The AD&D benefit pays:
- A hospital indemnity (hospital cash) policy pays:
- Employment Insurance sickness benefits are available to:
- Which government program coordinates with an individual DI policy through a possible offset AND also affects the definition of insurable income?
- A group plan's 'eligibility waiting period' (probationary period) is:
- A CI policy that is 'convertible' allows the insured to:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.