LLQP Accident & Sickness · Component 2.2 · 30% of the exam
Which rider directly addresses the risk that a young insured's 30-year claim would lose half its purchasing power?
- AFuture purchase option, which raises the monthly benefit each year of the claim
- BHospital confinement rider, which waives the waiting period and adds an indexed benefit
- CReturn-of-premium rider, which refunds premiums to offset inflation over the claim
- Cost-of-living adjustment, which indexes the benefit during the claim
Correct answer: D) Cost-of-living adjustment, which indexes the benefit during the claim
COLA indexes benefits during a claim. FPO increases coverage before a claim but does nothing once the claim begins.
Why the other options are wrong
- AFPO cannot be exercised during disability.
- BThe hospital rider affects the waiting period only.
- CROP refunds premiums; it does nothing for a benefit's purchasing power.
Exam tip
In-claim inflation = COLA.
Common mistake
Answering FPO for in-claim inflation protection.
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.