LLQP Life Insurance · Component 4.1 · 10% of the exam
A client with a policy issued four years ago asks to add a waiver of premium rider. The agent should explain that:
- the insurer will treat this as new coverage and require evidence of insurability
- Briders can only ever be selected when the original application is first completed
- Cthe rider will be added at the next anniversary without the client needing to apply
- Driders may be added to an in-force policy without any further requirements at all
Correct answer: A) the insurer will treat this as new coverage and require evidence of insurability
Adding a benefit asks the insurer to accept a risk it has not assessed, so underwriting applies. A client whose health has changed may be declined, which is why riders are best settled at issue.
Why the other options are wrong
- BMany riders can be added later, subject to evidence of insurability.
- CNothing is added automatically at a policy anniversary.
- DNew coverage on an in-force policy still requires underwriting.
Exam tip
Adding a rider later means new underwriting on the current health.
Common mistake
Telling a client a rider can be added whenever they decide they want it.
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.