LLQP Accident & Sickness · Component 4.1 · 10% of the exam
A DI policy lapses because a PAD payment failed while the client was travelling. The client returns within 45 days. The agent should:
- ATell the client to buy a new policy, since a lapsed disability policy cannot be restored once the grace period passes
- BIgnore it, since a returned payment is a bank matter and the insurer will simply retry the debit next month
- CBackdate the payment quietly so that the lapse never appears on the insurer's records
- Check the grace period; if it has passed, apply for reinstatement with back premiums and any evidence
Correct answer: D) Check the grace period; if it has passed, apply for reinstatement with back premiums and any evidence
Reinstatement is the remedy for lapse. Acting promptly minimizes evidence requirements.
Why the other options are wrong
- AReinstatement preserves original terms.
- BLapse must be addressed.
- CBackdating a payment secretly is fraud against the insurer.
Exam tip
Lapse → reinstatement quickly, before evidence requirements tighten.
Common mistake
Letting a lapsed DI policy sit.
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.