LLQP Accident & Sickness · Component 2.2 · 30% of the exam
A critical illness policy's 'return of premium on death' rider provides that:
- AThe critical illness benefit is paid twice over if the insured dies of a covered condition
- If the insured dies without having claimed, the premiums paid are refunded to the beneficiary
- CThe life insurance premiums on an attached policy are refunded at the insured's death
- DPremiums are refunded annually if the insured has made no claim during the year
Correct answer: B) If the insured dies without having claimed, the premiums paid are refunded to the beneficiary
The rider answers the objection that critical illness coverage may never pay, by returning the cost to the family if the insured dies without a qualifying diagnosis.
Why the other options are wrong
- AThe benefit is a refund of premiums, not a doubled payment.
- CThe rider refunds the critical illness premiums specifically.
- DThe refund is triggered by death, not paid each year.
Exam tip
Return of premium on death refunds the CI premiums to the beneficiary.
Common mistake
Promising a refund the client's version of the rider does not provide.
What this tests
CISRO competency component 2.2 — 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.