LLQP Life Insurance · Component 2.2 · 30% of the exam
At delivery, an agent's explanation of the riders attached to a policy should cover:
- what each rider pays, what it excludes, when it expires and what it costs
- Bonly the riders the client specifically asks about during the delivery meeting
- Conly the benefit amounts, since the exclusions are set out in the contract itself
- Donly the total premium, since clients rarely read the rider provisions anyway
Correct answer: A) what each rider pays, what it excludes, when it expires and what it costs
Riders carry their own definitions, exclusions and expiry ages, and clients frequently misremember what they bought. Explaining each one at delivery prevents a disappointed claim years later.
Why the other options are wrong
- BThe agent raises what matters rather than waiting to be asked.
- CExclusions are exactly what a client is least likely to discover alone.
- DThe obligation to explain does not depend on whether clients read.
Exam tip
Explain each rider's benefit, exclusions, expiry and cost at delivery.
Common mistake
Delivering a policy and mentioning only the total premium.
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.