LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A disability policy sold on a 'cancellable' basis gives the insurer the right to:
- ARefuse a claim on the ground that the insured has aged since the policy was issued
- BReduce the benefit period at any time without notice to the insured
- Refuse renewal or change premiums and terms at the renewal date, on notice
- DCancel a claim already in payment if the insured's occupation changes
Correct answer: C) Refuse renewal or change premiums and terms at the renewal date, on notice
Cancellable and optionally renewable contracts are the weakest renewal basis, and a client relying on one has no assurance the coverage will still be there when it is needed.
Why the other options are wrong
- AAgeing is priced into the contract and is not a ground for refusing a claim.
- BChanges take effect at renewal and on notice, not silently at any time.
- DA claim already approved continues under the contract's terms.
Exam tip
Cancellable means the coverage may not be there when the client needs it.
Common mistake
Comparing a cancellable contract with a non-cancellable one on premium alone.
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.