CII R05 Critical Illness Cover

Question 1

Under a typical critical illness policy, when is the sum assured paid?

Accepted Answer

On diagnosis of a specified critical illness that meets the policy definition and after any survival period

Answer

Immediately upon diagnosis of any medical condition

Answer

Only upon the death of the life assured

Answer

At the end of the policy term regardless of health

Question 2

The Association of British Insurers (ABI) model definitions for critical illness cover include a core set of conditions. Which of the following is included in the ABI core conditions?

Accepted Answer

Cancer (excluding less advanced cases)

Answer

Chronic fatigue syndrome

Answer

Type 2 diabetes

Answer

Carpal tunnel syndrome

Question 3

What is the purpose of the survival period in a critical illness policy?

Accepted Answer

To ensure the claimant survives for a minimum period after diagnosis before the benefit is paid

Answer

To allow the insurer time to invest the premiums

Answer

To give the policyholder time to decide if they want to claim

Answer

To calculate the final bonus payable on the policy

Question 4

An accelerated critical illness policy differs from a standalone critical illness policy because:

Accepted Answer

A successful critical illness claim reduces or extinguishes the death benefit

Answer

It covers a wider range of illnesses

Answer

The critical illness benefit is paid in addition to the full death benefit

Answer

It provides income replacement rather than a lump sum

Question 5

Which of the following would typically NOT be covered under a standard critical illness policy?

Accepted Answer

A stress-related condition such as anxiety

Answer

Heart attack

Answer

Major organ transplant

Answer

Stroke resulting in permanent symptoms lasting more than 24 hours

Question 6

A policyholder has a critical illness policy with a children's cover extension. This benefit typically provides:

Accepted Answer

A percentage of the main sum assured if a dependent child is diagnosed with a specified critical illness

Answer

Full sum assured if a child is diagnosed with a covered condition

Answer

Cover for the child's future loss of earnings

Answer

An annuity payable to the child until age 18