LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A disability policy's 'incontestability' provision means that after a stated period (commonly two years):
- ABenefits become taxable regardless of who paid the premium
- BThe definition changes from own occupation to any occupation
- CPremiums stop because the policy becomes paid-up
- The insurer cannot void the policy for misrepresentation, except for fraud
Correct answer: D) The insurer cannot void the policy for misrepresentation, except for fraud
Incontestability gives the policyowner certainty after two years. Fraud remains contestable. Provinces' uniform accident and sickness legislation sets the basic rule.
Why the other options are wrong
- ATaxability depends on the premium payer, not on time elapsed.
- BThe definition is contractual and fixed.
- CPremiums remain payable after the contestability period.
Exam tip
Incontestable after two years, except fraud.
Common mistake
Believing incontestability protects fraudulent applications.
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.