LLQP Life Insurance · Component 2.2 · 30% of the exam
A 'return of premium on death' rider on a critical illness component means:
- APremiums are refunded annually to the policyholder in any year in which no critical illness claim has been made under the contract
- BThe CI benefit doubles at death, so the beneficiary receives the CI amount in addition to the life benefit
- If the insured dies without having claimed the CI benefit, the CI premiums paid are refunded
- DLife premiums are refunded to the beneficiary at death, in addition to the death benefit under the base policy
Correct answer: C) If the insured dies without having claimed the CI benefit, the CI premiums paid are refunded
ROP on death addresses the objection 'what if I die without a critical illness?' by returning the CI premiums. It is distinct from ROP on expiry or surrender, and it adds to the cost.
Why the other options are wrong
- ARefunds are triggered by death, not paid annually.
- BThe benefit is a premium refund, not a doubled payout.
- DIt refunds CI premiums specifically.
Exam tip
Know the three ROP variants: on death, on expiry, on surrender — and what each costs.
Common mistake
Promising a refund the rider's specific version does not provide.
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.