LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A DI policy's 'change of occupation' provision typically allows the insurer to:
- Adjust the benefit to what the premium would buy in the new, more hazardous class
- BRefuse any claim that arises from the duties of the new occupation until the policy is re-underwritten
- CIncrease the waiting period to reflect the higher risk associated with the new occupation
- DCancel the policy outright as soon as it learns of the change in the insured's occupation
Correct answer: A) Adjust the benefit to what the premium would buy in the new, more hazardous class
The provision aligns coverage with the current risk. Under non-cancellable policies the insurer often waives it, but agents should read the contract.
Why the other options are wrong
- BClaims are paid at the adjusted level, not refused.
- CThe waiting period is unchanged.
- DCancellation is not the remedy.
Exam tip
Change of occupation: benefit adjusted to the new class, not cancelled.
Common mistake
Failing to tell the insurer about a move to a riskier occupation.
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.