LLQP Life Insurance · Component 2.2 · 30% of the exam
For which client is an accidental death rider LEAST likely to be a suitable use of premium dollars?
- AA client who drives long distances for work every week, exposed to highway accidents
- BA young client with a hazardous occupation such as roofing or logging
- An elderly client whose death is far more likely to result from illness than accident
- DA client with a dangerous hobby such as motorcycle racing or rock climbing, pursued most weekends throughout the year
Correct answer: C) An elderly client whose death is far more likely to result from illness than accident
AD riders pay only for accidental death. For older clients, accident is a small share of mortality, so the rider offers little expected value; the money is better spent on base coverage. Suitability is about probability, not just price.
Why the other options are wrong
- ALong-distance driving raises accident exposure.
- BA hazardous occupation raises accident risk, making AD more relevant.
- DA dangerous hobby raises accident exposure.
Exam tip
AD riders make sense where accident risk is meaningful; for the elderly, illness dominates and the rider is poor value.
Common mistake
Adding AD riders to every policy regardless of the client's age and exposure.
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.