Practice Free LLQP Exam Online Questions
Laraine wants to purchase an Individual Variable Insurance Contract (IVIC) because of the death benefit guarantee as she has been ill. She has decided on a segregated fund which has, as its underlying asset, units of a mutual fund that invests in North American common shares. Her insurance agent, Jeffrey, wants her to understand key issues before she completes and signs the application.
What should Jeffrey do?
- A . Provide her with the prospectus issued for the underlying mutual fund units.
- B . Provide her with the summary information folder for the segregated fund.
- C . Tell her she has a 10-day "free look" to review the contract.
- D . Tell her she must complete a medical questionnaire which will be attached to the application.
(Jerry, aged 63, is getting ready to retire. His pension statement shows contributions, investment choices, and performance data.
From among the following types of pension plans, which one was Jerry a member of?)
- A . Group life income fund.
- B . Defined benefit pension plan.
- C . Defined contribution pension plan.
- D . Deferred profit-sharing plan.
Juliette owns a medium-sized business with approximately 100 employees. Three years ago, she set up a small group benefits plan. Her employees, however, are unhappy with the coverages offered under the plan. Moreover, for tax purposes, the group plan shares the cost of disability premiums with the employees―an expense they do not welcome.
What should Juliette’s agent tell her?
- A . She should instead opt for an EHT, which affords more flexibility with no tax implications for her employees.
- B . She should instead opt for a PHSP, which provides more flexible and tax-free disability benefits.
- C . Her existing group plan is the best solution, because a group of that size would not be able to take advantage of other “grouped” alternatives.
- D . The existing group plan is the most cost-effective and tax-free way to provide these benefits.
Surjit and Rajbir get married in 2010 and Surjit names Rajbir as the irrevocable beneficiary of his life insurance contract. In 2017, the couple divorces amiably and Surjit meets with his insurance representative, Ivan, to review his plans. Surjit tells Ivan that he would like to keep Rajbir as his beneficiary.
What should Ivan counsel his client to do?
- A . Surjit does not need to do anything as Rajbir is already the named beneficiary.
- B . Surjit cannot make any changes to the policy without Rajbir’s consent as she is the irrevocable beneficiary of his policy.
- C . Surjit should name a different beneficiary now that he is divorced.
- D . Surjit should once again designate Rajbir as the beneficiary.
Isaac and Natasha, Quebec residents, were married 18 years ago. At the time, they visited a notary to get married under the "separation as to property" matrimonial regime and had indicated their wish to waive the application of the division of the patrimony by agreement. After experiencing a series of personal crises, the couple is now divorcing.
Which of the following assets, if any, will they have to separate when they divorce?
- A . Isaac’s dental practice, started 10 years ago.
- B . Natasha’s cottage, purchased with Isaac 15 years ago.
- C . The $40,000 accumulated in Isaac’s whole life insurance policy.
- D . They will not need to separate any assets.
Last week, at a dinner party, Dario, an insurance agent, met Andrew, a successful businessperson with a net worth of over $10 million. Dario spent the evening following Andrew around, telling him how he could help him manage his finances. The day after the meeting, Dario sent a fruit basket to Andrew’s office. Every day since, Dario has been calling and urging Andrew to meet with him and take advantage of his services and insurance products.
Which duties and obligations did Dario break?
- A . Duties and obligations towards the public
- B . Duties and obligations towards clients
- C . Duties and obligations towards other representatives, firms, independent partnerships, insurers, and financial institutions
- D . Duties and obligations towards the profession
Luisa owns a balanced segregated fund currently valued at $50,000. Her mother Linda is the current revocable beneficiary of the policy. However, Luisa has been dating Benjamin for a year and would like to name him as the new beneficiary of her policy.
Which of the following statements about modifying the beneficiary designation is CORRECT?
- A . The change will take effect on the date that the insurer receives the change of beneficiary form.
- B . Since Linda is Luisa’s named beneficiary, she would need to consent to the change.
- C . Luisa can modify the designation anytime.
- D . Luisa can call the insurer’s head office to notify them of the change.
Miguel applied for a disability insurance policy nearly three months ago. He recently received notice from his agent that his application was approved, with an exclusion applicable to his lower back due to a prior injury. The agent brought the exclusion amendment with the policy at the delivery appointment. Miguel signed and accepted it. He gave the agent a copy of a void cheque to set up direct billing for the premiums, but asked that they wait three days to draw the first premium, to coincide with his payday. The insurer drew the premium three days later, as requested.
When did Miguel’s policy take effect?
- A . The policy has been in effect ever since Miguel’s initial application.
- B . The policy took effect when Miguel received notice of approval.
- C . The policy took effect when Miguel signed the policy and the amendment.
- D . The policy took effect when the insurer was able to draw the first premium.
Li Jun, 50, applies for a $250,000 critical illness (CI) insurance policy with his insurance agent Ming. On the application, Li Jun states that he must take pills daily to manage his hypertension. Aside from this, his health is good. Given his age and hypertension issue, he is worried that the insurer may refuse his application.
What does Ming CORRECTLY advise him?
- A . The policy will likely be denied.
- B . The policy will likely be issued with an exclusion.
- C . The policy will likely be issued with a premium rating.
- D . The policy will likely be issued with a lower benefit.
Ariana is a Vancouver restauranteur who owns a $250,000 universal life (UL) insurance policy with a cash surrender value that has grown considerably over the years. Unfortunately, her restaurant has fallen on hard times and in an effort to turn the business around, she takes out a string of business loans that she personally guaranteed. To protect her life insurance from creditors, she changes the
beneficiary designation from her estate, naming her husband as a revocable beneficiary. Despite her efforts, the restaurant’s profits do not improve, and she is forced to close her business and file for bankruptcy.
Can her creditors seize her cash surrender value?
- A . Yes, because she changed her beneficiary designation to hinder creditors.
- B . Yes, because she has money accumulated in her cash surrender value.
- C . No, because her husband is a protected class beneficiary.
- D . No, because the creditors can only go after the restaurant’s assets.