Practice Free LLQP Exam Online Questions
Danny purchases a $1,000,000 whole life insurance policy. He names his three daughters, Donna-Joe, Stephanie, and Michelle, as revocable beneficiaries with each receiving one-third of the death benefit.
If Michelle predeceases Danny, and Danny did not have a chance to modify his beneficiary designation, how will Danny’s death benefit be paid out?
- A . Donna-Joe and Stephanie will each receive $500,000.
- B . Donna-Joe and Stephanie will each receive $333,333, and Michelle’s estate will receive $333,333.
- C . Donna-Joe and Stephanie will each receive $333,333, and Danny’s estate will receive $333,333.
- D . Danny’s estate will receive the entire $1,000,000 death benefit.
Dora meets with the following clients, each of whom fills out a disability insurance application:
• Scott, a ski instructor who skydives every weekend in the summer,
• Lamar, a librarian who drives to work daily and spends his free time collecting stamps and watching nature shows,
• Timothy, an administrative assistant who walks 30 minutes each way to and from work, and
• Yashar, an accountant who participates in 5 online chess competitions a week and studies chess in his spare time.
All else being equal, which of Dora’s clients will qualify for the most favorable insurance premium?
- A . Scott
- B . Lamar
- C . Timothy
- D . Yashar
Arianna has been an insurance agent with Ideal Life for over 15 years, always working hard to grow her client base and keep her existing clients happy. Last week, she prepared an elaborate insurance plan for Raphael, a potential new client. But when they meet, Raphael tells her he wants a second opinion. Arianna tells him that she cannot allow him to show or discuss details of her work with a potential competitor. She explains it’s wrong for another agent to benefit from her work and knowledge.
Which of the following standards of conduct did Arianna contravene?
- 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.
Francis owns a $250,000 insurance policy with an accidental death and dismemberment (AD&D) rider. Francis calls his insurance agent Andrew to inform him that he permanently lost the use of his right hand. He explains to Andrew that his brother shot him when he broke into his brother’s house to recover a gold watch that was rightfully his. Francis wants to know how much he will receive from his AD&D rider.
- A . Francis will receive a benefit of $165,000.
- B . Francis will receive a benefit of $187,500.
- C . Francis will receive a benefit of $250,000.
- D . Francis will not receive any benefit.
(Arthur’s assets include a home worth $744,000, savings of $41,000, and a whole life insurance policy with a death benefit of $300,000 and a cash value of $196,000. His liabilities include a $150,000 reverse mortgage and $2,090 income tax owed.
What is Arthur’s net worth?)
- A . $1,082,910
- B . $932,910
- C . $828,910
- D . $678,910
Luc is married and the father of two teenagers. His annual salary is $60,000. His wife Marie works
part-time with an annual salary of $24,000. The family’s monthly expenses are $3,500. Luc and Marie are not members of any group benefit plan.
What is the minimum monthly amount of disability insurance coverage that Luc needs to cover his risk of disability?
- A . $1,500
- B . $3,500
- C . $5,000
Six years ago, Diu purchased an immediate life annuity with a 10-year guarantee period. The annuity paid her a monthly benefit of $1,800. She named her son Shan as the beneficiary of the policy and her niece Haru as a contingent beneficiary. Shan died four months ago in a motorcycle accident and between grieving and planning the funeral, Diu forgot to update her beneficiary designation. Last week, Diu died of a heart attack.
Who would receive the annuity benefits?
- A . Shan’s widow
- B . Shan’s estate
- C . Haru
- D . Diu’s estate
Helmut, a Canadian resident for 10 years, invests $25,000 in a segregated fund within an RRSP. The agent processes the transaction without asking for proof of identity.
According to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), what is the conclusion about the agent’s action?
- A . He has violated the identification requirements because the amount of the transaction is more than $10,000.
- B . He has not violated the identification requirements because the amount is less than $100,000.
- C . He has violated the identification requirements because the agent previously completed just one transaction for Helmut.
- D . He has not violated the identification requirements because the amount was deposited in a registered account.
(Nancy has invested $100,000 in mining company stocks in her local area.
To which of the following risks is Nancy most exposed?)
- A . Interest rate risk
- B . Inflation risk
- C . Industry risk
- D . Liquidity risk
Mike and Todd are both agents with Superior Insurance Company. Every Friday, they have lunch together at the local pub. One Friday, Mike forgets his wallet, so Todd pays both bills. Mike has a sales appointment that afternoon, where he will be signing a small term life insurance policy on a child. He decides to simply indicate that Todd is the agent of record so that Todd gets the compensation for the sale―an easy way to pay him back for lunch!.
What practice is Mike engaging in?
- A . Tied selling.
- B . Fronting.
- C . Churning.
- D . Misrepresentation.