LLQP Life Insurance · Component 2.2 · 30% of the exam
A client returns to work after a waiver of premium claim and becomes disabled again by the same condition. A recurrence provision would:
- resume the waiver without a new waiting period if the recurrence falls within a stated time
- Btreat the second period as an entirely new claim with a fresh waiting period
- Cpay a lump sum equal to the premiums waived during the first disability period
- Ddeny the second claim because the condition was previously the subject of a claim
Correct answer: A) resume the waiver without a new waiting period if the recurrence falls within a stated time
A recurrence provision protects a client who tries to return to work and cannot sustain it. Without one, a second waiting period must be served before premiums are waived again.
Why the other options are wrong
- BThat is the position where no recurrence provision applies.
- CThe waiver suspends premiums rather than paying a lump sum.
- DA recurrence of the same condition is not a ground for denial.
Exam tip
A recurrence provision rewards a client for attempting to return to work.
Common mistake
Comparing waiver riders without checking the recurrence terms.
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.