LLQP Accident & Sickness · Component 2.1 · 30% of the exam
The 'grace period' in a disability policy:
- Keeps the policy in force for a stated period after a missed premium
- BWaives all premiums for the first year after the policy is issued
- CIs the same as the waiting period that runs before benefits begin
- DApplies only to the first premium after the policy has been issued
Correct answer: A) Keeps the policy in force for a stated period after a missed premium
Grace period protects against lapse from a late payment. Coverage continues; the premium is still owed.
Why the other options are wrong
- BThe premium remains payable.
- CThe waiting period concerns benefits, not premiums.
- DIt applies to every premium due date.
Exam tip
Grace period: policy in force, premium still owed, usually 30–31 days.
Common mistake
Confusing the grace period with the waiting period.
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.