LLQP Ethics & Professional Practice · Component 1.4 · 60% of the exam
A 'child term rider' or 'family rider':
- AInsures the agent's family members under the client's policy, as a benefit of the agent's servicing role
- BIs a savings plan that accumulates a cash value for each child until the child reaches the age of majority and takes it over
- Provides term coverage on the insured's children under the main policy, usually with a conversion right
- DPays for the children's post-secondary education if the life insured dies before they finish school
Correct answer: C) Provides term coverage on the insured's children under the main policy, usually with a conversion right
Family riders are low-cost and include valuable conversion rights.
Why the other options are wrong
- AA family rider covers the client's family, not the agent's.
- BA child rider is insurance coverage, not a savings plan.
- DIt is not an education product.
Exam tip
Child rider: term on children, conversion at a stated age.
Common mistake
Forgetting to convert a child's coverage before the deadline.
What this tests
CISRO competency component 1.4 — Integrate into practice the legal aspects of insurance and annuity contracts — which is weighted at 60% of the Ethics & Professional Practice module. Written against the published curriculum.
More from component 1
- An 'assignee' of a life insurance policy is:
- A corporation as policyowner and beneficiary of a policy on a key employee:
- A 'trustee' named to receive proceeds on behalf of a beneficiary:
- The 'automatic premium loan' (APL) provision:
- A life insurance contract 'matures' when:
- The 'assignment' provision typically states that:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.