LLQP Accident & Sickness · Component 2.1 · 30% of the exam
A policy is described as non-cancellable and guaranteed renewable. This means the insurer:
- Cannot cancel, change the premium or alter the provisions while premiums are paid
- BMay change premiums for the whole class but must continue to renew the policy
- CMust refund all premiums if the insured never makes a claim before the expiry age
- DMay cancel the policy if the insured's occupation becomes more hazardous after issue
Correct answer: A) Cannot cancel, change the premium or alter the provisions while premiums are paid
Non-cancellable is the strongest renewal provision in disability insurance, locking premiums, benefits and contract terms until the stated expiry age.
Why the other options are wrong
- BClass repricing is permitted under guaranteed renewable alone, not under non-cancellable.
- CPremium refunds arise only under a return of premium rider.
- DA change of occupation cannot be used to cancel a non-cancellable contract.
Exam tip
Non-cancellable locks the premium; guaranteed renewable locks only the renewal.
Common mistake
Using the two renewal provisions interchangeably.
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.