LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A DI policy's 'waiver of premium' provision means:
- APremiums are waived whenever the insured requests it, provided the policy is in force and paid up to date
- Premiums are waived after a stated period of disability and may be refunded for that period
- CThe client never pays premiums once the policy has been continuously in force for ten years
- DPremiums are waived automatically at 65 when the benefit period under the policy comes to an end
Correct answer: B) Premiums are waived after a stated period of disability and may be refunded for that period
Waiver of premium keeps the policy in force during a claim without cost to the insured. It is usually built into individual DI rather than sold as a rider.
Why the other options are wrong
- ADisability, not a request, triggers the waiver.
- CPremiums are payable whenever the insured is not disabled.
- DAge does not trigger waiver; the policy simply expires.
Exam tip
Waiver kicks in after a stated disability period and lasts while benefits are paid.
Common mistake
Telling a disabled client to keep paying premiums indefinitely.
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.