LLQP Ethics & Professional Practice · Component 1.4 · 60% of the exam
A 'waiver of premium' rider on a life policy:
- APays a monthly income to the life insured while totally disabled, in addition to keeping the policy in force
- BWaives premiums automatically at age 65, since the insurer treats retirement as the end of the paying period
- CIs built into every life policy at no cost, since the Act requires insurers to protect disabled policyowners from lapse
- Waives premiums if the insured becomes totally disabled as defined, after a waiting period, while disabled
Correct answer: D) Waives premiums if the insured becomes totally disabled as defined, after a waiting period, while disabled
Waiver of premium is the link between disability and life insurance protection.
Why the other options are wrong
- AIt waives premiums; it pays no income.
- BDisability, not age, triggers it.
- CIt is usually an optional rider with its own premium.
Exam tip
Waiver of premium: disability-triggered, keeps the policy paid.
Common mistake
Confusing waiver of premium with disability income.
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.