LLQP Accident & Sickness · Component 4.1 · 10% of the exam
An insurer proposes to cancel a 'cancellable' A&S policy at renewal. The agent should:
- ATell the client nothing can be done, since a cancellable policy gives the insurer an absolute right of non-renewal
- BIgnore the notice, since insurers rarely follow through on a proposal to cancel an individual policy
- CAdvise the client to sue the insurer, since cancellation of an in-force policy is a breach of contract
- Explain the insurer's right and help the client seek replacement coverage before the policy ends
Correct answer: D) Explain the insurer's right and help the client seek replacement coverage before the policy ends
Cancellable policies carry this risk. Service means securing alternatives before the termination date.
Why the other options are wrong
- AReplacement may be possible.
- BTime-sensitive action is needed.
- CThe insurer is within its rights.
Exam tip
Cancellable policy non-renewed → replace before the end date.
Common mistake
Letting coverage lapse before seeking a replacement.
What this tests
CISRO competency component 4.1 — Provide customer service during the validity period of the coverage — which is weighted at 10% of the Accident & Sickness module. Written against the published curriculum.
More from component 4
- The agent's role in the claims process is to:
- A client with a non-cancellable DI policy stops paying premiums after a dispute with the insurer about a claim. The agent should warn that:
- When a client moves to another province, the agent should:
- A client asks to reduce the waiting period on his in-force disability policy. The agent should explain that the change:
- A client's disability policy lapsed six weeks ago for non-payment. The agent should:
- A client on claim asks whether she must keep paying premiums. The accurate answer depends on:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.