LLQP Ethics & Professional Practice · Component 1.4 · 60% of the exam
An 'accidental death benefit' rider:
- AReplaces the base death benefit when death is accidental, so the beneficiary receives the rider amount alone rather than both
- Pays an additional amount if death results from an accident as defined, within a stated time, with exclusions
- CCovers death from illness as well as accident, since the rider extends the base policy's definition of death
- DIs included free of charge on every policy, since accidental deaths are rare and cost the insurer little
Correct answer: B) Pays an additional amount if death results from an accident as defined, within a stated time, with exclusions
ADB is cheap but narrow; agents should not oversell it as a substitute for adequate base coverage.
Why the other options are wrong
- AThe accidental death benefit adds to the base benefit.
- CThe rider covers accidental death only.
- DThe rider carries its own premium.
Exam tip
ADB: extra benefit for accidental death only.
Common mistake
Relying on ADB to meet a life insurance need.
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.