LLQP Life Insurance · Component 1.2 · 35% of the exam
A client's existing policy carries a guaranteed insurability rider with several option dates still unused. The review should:
- note the remaining dates so additional coverage can be added without evidence
- Bignore the rider, since additional coverage always requires fresh medical evidence
- Crecommend cancelling the rider to reduce the premium the client pays
- Dtreat the rider as coverage already in force when totalling the client's protection
Correct answer: A) note the remaining dates so additional coverage can be added without evidence
Unused options are valuable, particularly for a client whose health may change. Recording the dates lets the agent contact the client in time, since an option missed is generally an option lost.
Why the other options are wrong
- BThe rider exists precisely so no further evidence is required.
- CCancelling forfeits a right that may prove valuable later.
- DThe rider is a right to buy coverage, not coverage in force.
Exam tip
Diarize unused option dates; a missed option is usually gone for good.
Common mistake
Overlooking a guaranteed insurability rider during a coverage review.
What this tests
CISRO competency component 1.2 — Assess the client's needs and situation — which is weighted at 35% of the Life Insurance module. Written against the published curriculum.
More from component 1
- A client's existing policies were all sold by another agent who has left the business. The reviewing agent should:
- A client supports an adult child with a permanent disability who will never be self-sufficient. In the needs analysis this is:
- A self-employed client's income fluctuates widely year to year. When determining the income to replace, the agent should:
- A 58-year-old client plans to retire at 65 and has a pension that will pay a survivor benefit. How does time to retirement affect the life insurance need?
- Which of the following is a capital expense arising at death, rather than an ongoing income need?
- A client is the sole income earner in a household with a stay-at-home spouse and two young children. The greatest risk that life insurance on the client addresses is:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.