LLQP Accident & Sickness · Component 2.1 · 30% of the exam
CI policies are commonly available as:
- AWhole life only, since CI must be permanent to have any value at the ages when claims occur
- Term to a stated age or renewable term, and permanent versions with level premiums
- CGroup only, since individual CI cannot be underwritten profitably by Canadian insurers
- DAnnual only, with the premium re-underwritten on the insured's health at each renewal
Correct answer: B) Term to a stated age or renewable term, and permanent versions with level premiums
CI product structures parallel life insurance: T-10, T-75, T-100, and paid-up options. The choice depends on how long the client wants coverage and the cost.
Why the other options are wrong
- ATerm forms are the most common CI structures.
- CIndividual CI is a major market.
- DAnnual-only CI is unusual; terms of 10 years or to a stated age are standard.
Exam tip
CI structures: T-10, T-75, T-100/permanent. Longer = costlier now, cheaper over time.
Common mistake
Selling T-10 CI to a client who wants lifetime coverage without discussing renewal costs.
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.