LLQP Life Insurance · Component 4.1 · 10% of the exam
A client whose children are grown asks to remove the child rider from his policy. The agent should:
- Aremove it and arrange a refund of the rider premiums the client has paid over the years
- Bremove it immediately, since the children no longer depend on their father
- Crefuse, because riders cannot be removed once the policy has been issued
- check whether the conversion right is still available to the children before removing it
Correct answer: D) check whether the conversion right is still available to the children before removing it
The conversion right lets each child obtain individual coverage without evidence, which may be the most valuable part of the rider. Removing it early destroys that option permanently.
Why the other options are wrong
- APast rider premiums bought coverage and are not refunded.
- BThe conversion right may still be worth far more than the premium.
- CRiders can generally be removed on the owner's request.
Exam tip
Check the conversion right before removing a child rider.
Common mistake
Cancelling a child rider to save premium and losing the conversion.
What this tests
CISRO competency component 4.1 — Provide customer service during the validity period of the coverage — which is weighted at 10% of the Life Insurance module. Written against the published curriculum.
More from component 4
- After a policy is reinstated, the contestability period:
- A revocable beneficiary designation is changed by:
- A client asks the agent to hold the beneficiary change form 'until next week' and dies in the meantime. The consequence is that:
- A client wants to reduce the face amount of her policy because her needs have fallen. The agent should note that:
- A client is unable to pay premiums temporarily on a whole life policy. Before letting it lapse, the agent should suggest:
- A client's term policy is being replaced with a new one from another insurer because it is cheaper and he remains healthy. To protect the client, the agent should ensure that:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.