LLQP Ethics & Professional Practice · Component 1.4 · 60% of the exam
The 'payor benefit' rider on a juvenile policy:
- AIs a savings feature that accumulates the premiums paid by the parent for the child's future use
- BIncreases the death benefit on the child's policy if the parent dies before the child reaches majority
- Waives premiums if the payor dies or becomes disabled before the child reaches a stated age
- DPays the child a monthly benefit if the parent dies, in addition to keeping the policy in force
Correct answer: C) Waives premiums if the payor dies or becomes disabled before the child reaches a stated age
Payor benefits protect juvenile policies against the payor's death or disability.
Why the other options are wrong
- AThe payor benefit is an insurance feature, not a savings feature.
- BThe payor benefit does not increase the death benefit.
- DThe payor benefit waives premiums; it pays nothing to the child.
Exam tip
Payor benefit: waiver if the payor dies/becomes disabled.
Common mistake
Confusing payor benefit with the child's own waiver.
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.