LLQP Accident & Sickness · Component 2.2 · 30% of the exam
A non-forfeiture option on a long-term care policy provides that, if the client stops paying premiums:
- AAll premiums paid are refunded in full, with interest, at the date the coverage ends
- BThe insurer continues the full benefit for life at no further cost to the policyholder
- CThe coverage continues unchanged for two years and then terminates automatically
- A reduced amount of paid-up coverage remains, reflecting the premiums already paid
Correct answer: D) A reduced amount of paid-up coverage remains, reflecting the premiums already paid
The option answers the objection that decades of premiums could be lost on a lapse, leaving the client with a smaller but permanent entitlement instead of nothing.
Why the other options are wrong
- AA full refund with interest is not what the option provides.
- BFull coverage for nothing is not offered by any insurer.
- CUnchanged coverage for a fixed period describes extended term, not this option.
Exam tip
Non-forfeiture converts paid premiums into reduced paid-up coverage.
Common mistake
Letting a long-term care policy lapse without checking the options.
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.