LLQP Accident & Sickness · Component 2.2 · 30% of the exam
A return-of-premium rider on a DI policy typically:
- AWaives the waiting period on any claim made after the policy has been in force for ten full years
- BRefunds all premiums paid whenever the insured makes a claim that lasts for longer than one year
- Refunds a percentage of premiums, less benefits paid, at intervals or expiry, at a much higher premium
- DIs included at no cost on non-cancellable policies as a reward for keeping the policy in force
Correct answer: C) Refunds a percentage of premiums, less benefits paid, at intervals or expiry, at a much higher premium
ROP appeals to clients who feel insurance is wasted if unused. It costs materially more and the client should compare with investing the difference.
Why the other options are wrong
- AIt does not affect the waiting period.
- BRefunds are reduced by claims paid, not triggered by them.
- DIt carries a substantial extra premium.
Exam tip
ROP on DI: refund net of claims, high cost; compare with investing the difference.
Common mistake
Presenting ROP as 'free insurance'.
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.