LLQP Ethics & Professional Practice · Component 1.4 · 60% of the exam
A 'guaranteed insurability' rider on a life policy allows:
- The owner to buy additional coverage at option dates or life events without evidence, up to stated amounts
- BA refund of the premiums paid on the base policy if the owner never exercises the options
- CUnlimited increases in coverage at any time, since the insurer has already accepted the life insured's risk
- DConversion of the permanent policy to term at a lower premium when the owner's needs change
Correct answer: A) The owner to buy additional coverage at option dates or life events without evidence, up to stated amounts
GI riders protect future insurability for young clients whose needs will grow.
Why the other options are wrong
- BA guaranteed insurability rider provides no premium refund.
- CAmounts and dates are limited.
- DIt is about buying more coverage, not converting to term.
Exam tip
GI rider: buy more later without evidence, within limits.
Common mistake
Missing an option date.
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.