Life License Qualification Program (LLQP) Practice Exam

When does the waiver of premium provision keep coverage in force without premium payments?

1. Whenever an insured is unable to work

2. During the time an insured is confined in a hospital

3. Following an accidental injury, but not during sickness

4. After an insured has become totally disabled as defined in the policy

The correct answer is: After an insured has become totally disabled as defined in the policy

The waiver of premium provision is designed to provide financial relief for policyholders who have become unable to pay their premiums due to significant health-related issues. This provision effectively allows a policy to remain in force without the need for further premiums when the insured meets specific criteria laid out in the policy. The correct option indicates that this provision activates after an insured has become totally disabled as defined in the policy. Total disability typically means that the insured cannot perform their occupation or any other work due to illness or injury, thus recognizing the profound impact such a condition has on their ability to meet financial obligations, including insurance premiums. This provision specifically addresses situations where the insured is incapacitated to the point where they cannot generate income. It reassures policyholders that they will not lose their coverage due to non-payment of premiums while they are dealing with a significant health issue, effectively keeping their insurance active during such challenging times. The other options, while they present scenarios that may lead to temporary inability to pay premiums, do not align with the specific definitions and conditions under which the waiver of premium provision operates. They either imply scenarios that are not covered by this waiver or do not meet the stringent criteria for total disability as defined by the insurance policy.