LLQP Life Insurance · Component 1.2 · 35% of the exam
A client's existing policy includes a term rider expiring within a year. The review should establish:
- Anothing, because a rider's expiry has no effect on the client's total coverage
- Bthat the insurer must automatically renew the rider on the same terms
- whether the rider is renewable or convertible and what the client will need afterward
- Dthat the base policy will expire at the same time as the rider attached to it
Correct answer: C) whether the rider is renewable or convertible and what the client will need afterward
A rider often has different renewal and conversion rights from the base policy. Identifying the expiry in advance lets the client act while insurability is not yet an obstacle.
Why the other options are wrong
- AA rider's expiry reduces the coverage in force.
- BRenewal depends on the rider's own provisions and is not automatic.
- DThe base policy continues on its own terms after a rider ends.
Exam tip
Riders carry their own renewal and conversion rights; check them separately.
Common mistake
Assuming a rider shares the base policy's renewal and conversion terms.
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.