LLQP Life Insurance · Component 2.2 · 30% of the exam
A client who races motorcycles at weekends asks whether his accidental death rider would pay. The agent should:
- Aconfirm that any accidental death is covered whatever activity caused it
- Badvise that the rider covers hazardous sports at double the ordinary benefit
- review the rider's exclusions, since hazardous activities are commonly excluded
- Dtell him the rider is void because he did not disclose the hobby at application
Correct answer: C) review the rider's exclusions, since hazardous activities are commonly excluded
Accidental death riders exclude specified activities such as racing, aviation and certain sports. The client needs to know before relying on the coverage, and the hobby should be disclosed to the insurer.
Why the other options are wrong
- AExclusions apply and commonly cover exactly this kind of activity.
- BNo enhanced benefit applies to excluded activities.
- DThe rider is not void, though an exclusion may apply.
Exam tip
Read the exclusions before telling a client an accidental rider will pay.
Common mistake
Describing accidental death coverage without reviewing its exclusions.
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.