LLQP Life Insurance · Component 2.2 · 30% of the exam
A spouse rider on a client's policy will most likely terminate when:
- AThe client changes jobs, since the spouse rider is priced on the client's employment and the group coverage that comes with it
- The base policy terminates, the couple divorces per the rider's terms, or the spouse reaches expiry
- CThe client turns 50, since spouse riders are designed to cover the child-rearing years only
- DNever, since a spouse rider is a separate contract on the spouse's life that continues independently
Correct answer: B) The base policy terminates, the couple divorces per the rider's terms, or the spouse reaches expiry
Riders depend on the base policy and carry their own expiry and termination events. Many spouse riders include a conversion right when the rider ends, which is the spouse's protection against losing insurability.
Why the other options are wrong
- AEmployment changes do not affect an individual policy's riders.
- CThe client's age is not the trigger; the rider's own terms are.
- DRiders have termination events.
Exam tip
Check spouse rider terms for divorce and expiry, and whether conversion is offered.
Common mistake
Assuming a spouse rider continues after the base policy is surrendered.
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.