LLQP Accident & Sickness · Component 2.2 · 30% of the exam
A 'non-cancellable' upgrade offered as a rider on a guaranteed renewable policy:
- AChanges the definition of disability from regular occupation to own occupation for the full term
- Locks the premium for the policy term at extra cost, making the policy non-cancellable
- CLowers the premium in exchange for giving up the right to renew at the end of the term
- DAdds critical illness coverage for the conditions most likely to cause a long disability claim
Correct answer: B) Locks the premium for the policy term at extra cost, making the policy non-cancellable
Some insurers price non-cancellable status as an option. It buys premium certainty.
Why the other options are wrong
- AThe definition is unaffected.
- CPremium certainty costs more, not less.
- DCritical illness coverage is a separate product, not part of a non-can option.
Exam tip
Non-can option = premium guarantee for extra cost.
Common mistake
Assuming a GR policy with a non-can rider still allows class premium increases.
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.