LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A 'non-cancellable' disability policy guarantees that:
- AThe client can never cancel the policy once it has been issued and delivered
- BBenefits are unlimited in amount for the duration of any disability
- The insurer cannot cancel, change provisions or raise the premium while premiums are paid
- DThe insurer may raise premiums only for the entire class of policyholders at once
Correct answer: C) The insurer cannot cancel, change provisions or raise the premium while premiums are paid
Non-cancellable is the strongest renewability provision: guaranteed coverage and guaranteed premium. Guaranteed renewable guarantees coverage only.
Why the other options are wrong
- AThe policyowner can always cancel.
- BBenefits are as stated in the contract.
- DClass premium increases are the guaranteed renewable feature.
Exam tip
Non-can = coverage and premium locked. GR = coverage locked, class premium can change.
Common mistake
Calling a guaranteed renewable policy non-cancellable.
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.