LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A DI policy's 'reinstatement' provision allows a lapsed policy to be restored:
- AAutomatically at any time by paying the overdue premium without interest
- Within a stated period, with overdue premiums and usually evidence of insurability
- CWithout any conditions, since the original underwriting decision still applies
- DOnly by applying for an entirely new policy at the rates for the current age
Correct answer: B) Within a stated period, with overdue premiums and usually evidence of insurability
Reinstatement re-establishes the original contract but the insurer typically requires health evidence and may re-impose a sickness waiting period. Avoiding lapse is better than reinstating.
Why the other options are wrong
- AReinstatement has conditions and time limits.
- CEvidence and back premiums are generally required.
- DReinstatement is a standard right within the stated period.
Exam tip
Reinstate: overdue premiums + evidence, within the time limit. Sickness may face a fresh restriction.
Common mistake
Assuming a lapsed DI policy can always be reinstated on request.
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.