LLQP Life Insurance · Component 2.2 · 30% of the exam
A client in his sixties asks why his accidental death rider no longer appears on his statement. The likely reason is that:
- such riders commonly terminate at a stated age set out in the contract
- Bthe insurer cancelled it because he made no claim during the policy's early years
- Cthe rider was converted automatically into additional permanent coverage
- Dthe benefit was paid out and applied to reduce his outstanding premiums
Correct answer: A) such riders commonly terminate at a stated age set out in the contract
Accidental death riders normally expire at a stated age, often around the mid-sixties or seventy. Clients who counted the amount in their total coverage should be told when it drops away.
Why the other options are wrong
- BRiders are not cancelled for an absence of claims.
- CNo automatic conversion to permanent coverage occurs.
- DNo benefit is paid while the insured is alive.
Exam tip
Accidental death riders expire at a stated age; note it in the review.
Common mistake
Counting an expired rider in a client's coverage total.
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.