LLQP Life Insurance · Component 2.2 · 30% of the exam
A client's rider is scheduled to terminate at a stated age well before the base policy ends. The agent should:
- Aassure the client that the insurer will extend the rider on request
- note the date and plan for the coverage gap before the rider expires
- Csay nothing, since the contract already records the termination age
- Drecommend cancelling the base policy at the same time as the rider ends
Correct answer: B) note the date and plan for the coverage gap before the rider expires
An expiring rider reduces the coverage in force at a point when the client may be less insurable. Identifying the date well in advance allows a replacement to be arranged while health still permits.
Why the other options are wrong
- AInsurers do not extend riders beyond their stated terms.
- CA date recorded in a contract is rarely noticed by the client.
- DThe base policy continues to serve its own purpose.
Exam tip
Diarize every rider expiry and plan the replacement in advance.
Common mistake
Discovering a rider expiry only after the coverage has ended.
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.