LLQP Accident & Sickness · Component 2.2 · 30% of the exam
A disability policy's automatic increase feature differs from a future purchase option because it:
- AApplies only during a claim, whereas the option applies only before one
- BRequires medical evidence at each increase, whereas the future purchase option does not
- CIncreases the benefit only when the insured's employer confirms a salary increase
- Raises the benefit on stated anniversaries by a set amount without the insured applying
Correct answer: D) Raises the benefit on stated anniversaries by a set amount without the insured applying
An automatic increase feature builds modest growth into the early policy years without any action by the insured, while the option requires an election and financial evidence at each date.
Why the other options are wrong
- ABoth operate before a claim; in-claim indexing is the cost of living rider.
- BNeither feature requires medical evidence; that is the point of both.
- CThe increase is automatic and does not depend on employer confirmation.
Exam tip
Automatic increases happen; options must be exercised.
Common mistake
Assuming an automatic increase feature can be exercised at any time.
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.