LLQP Life Insurance · Component 2.2 · 30% of the exam
A client asks to add a critical illness rider to a policy issued three years ago. The agent should explain that:
- Ariders may be added at any time without evidence, since the policy is already in force
- adding a rider is a new risk, so the insurer will require evidence of insurability
- Cthe rider will be added automatically at the next policy anniversary date
- Driders can only ever be selected at the time the base policy is issued
Correct answer: B) adding a rider is a new risk, so the insurer will require evidence of insurability
The insurer is accepting a new risk it has not previously assessed, so underwriting applies. A client whose health has changed may be declined, which is why riders are best considered at issue.
Why the other options are wrong
- AA policy in force does not remove underwriting for new coverage.
- CNothing is added automatically at an anniversary.
- DMany riders can be added later, subject to evidence.
Exam tip
Adding a rider later means new underwriting; decide at issue where possible.
Common mistake
Telling a client a rider can simply be added whenever they want it.
What this tests
CISRO competency component 2.2 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Life Insurance module. Written against the published curriculum.
More from component 2
- A client has a need lasting about twenty years and compares a ten-year and a twenty-year term policy. The main point to explain is that:
- A client exercises the conversion privilege on his term policy. The permanent premium will be based on:
- A client notices that a small policy costs proportionately more per unit of coverage than a larger one. The explanation is that:
- A client wants to pay monthly rather than annually. The agent should explain that monthly payment:
- A client asks why dividends from her participating policy are not taxed like interest from a bank. The reason is that a dividend is:
- A universal life policyholder is choosing among the investment options inside her policy. She should understand that:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.