Practice Free LLQP Exam Online Questions
(Laurent, age 45, is married with three children. He has no pension plan but contributes to an RRSP. His insurance agent recommends segregated funds but Laurent worries about losing his money if the insurer encounters financial difficulty.
What protection should the agent talk about to reassure Laurent?)
- A . The protection offered by the Canadian Investor Protection Fund.
- B . The protection offered by the Investor Protection Corporation.
- C . The protection offered by the Canada Deposit Insurance Corporation.
- D . The protection offered by Assuris.
On February 15, 2015, Donald took out income replacement insurance with an accidental death and dismemberment rider of $50,000 and a critical illness insurance rider of $25,000. The policy was issued on April 1, 2015. On April 10, 2015, his doctor tells him that the results of a urine analysis carried out at the end of March reveal a serious anomaly and refers him to an emergency urologist. On April 20, Donald is diagnosed with cancer of the right kidney, which is due to be removed on April 26. But, two days before the procedure, Donald dies in a car accident.
What benefit amount will the estate receive?
- A . $0
- B . $25,000
- C . $50,000
- D . $75,000
Bachir owns a successful video game business and has 10 employees. The time has come to plan
business succession and the eventual sale of the business. Bachir’s nephew Kharim, who shows a real interest in the business, is identified as his successor. Bachir would like to protect his sales price until such time as the business is sold to Kharim, who does not have the funds yet and will need a few years to amass the required amount. Bachir and Kharim consult insurance agent Bianca for advice.
What should Bianca propose?
- A . Disability buyout coverage in the event of Kharim’s disability.
- B . Business loan protection.
- C . Key person coverage.
- D . Disability buyout coverage in the event of Bachir’s disability.
Following the death of her sister Sarah last year, Yesha, the liquidator of Sarah’s estate, had been in contact with Sarah’s insurance agent Monique on several occasions to claim the death benefit on Sarah’s life insurance policy.
Yesterday, Yesha noticed that Sarah also had a disability insurance policy with a return of premium option which stated that a portion of the premiums can be reimbursed upon her death. Yesha contacted Monique again and asked her for more details about the disability policy and return of premium option but Monique replied that she could not help her as her firm had destroyed Sarah’s files shortly after paying out the death benefit.
Did Sarah’s firm act appropriately?
- A . Yes, because the death benefit was paid.
- B . Yes, because the life insurance company will still have a copy of the contract.
- C . No, because the file has to be kept for 5 years.
- D . No, because the file has to be kept for 7 years.
Paulette earns a modest income working as a delivery driver for FastFlowers Inc. in Quebec. The
florist company has over 80 employees, 20 of whom are delivery drivers. The employees benefit
from a group short- and long-term disability plan. One morning, while delivering flowers, Paulette’s
truck is struck by a bus. Paulette is taken to the hospital where a doctor deems that she will be
unable to work for at least 4 months. Paulette contacts Jade, the human resources manager, to ask
her who will pay her disability benefits.
Which of the following answers is CORRECT?
- A . Employment insurance (EI).
- B . Her group insurance.
- C . Société de l’assurance automobile du Québec (SAAQ).
- D . Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST).
Business owner Timothy is reviewing information that his life insurance agent provided for him to establish a group savings plan for his employees. Timothy then meets the agent for some advice. He wants to avoid having to deal with pension credit adjustments.
Which of the following types of plans would meet this requirement?
- A . GRRSPs and DPSPs.
- B . GRRSPs and group TFSAs.
- C . Group TFSAs and DPSPs.
- D . Group TFSAs and DCPPs.
Callum is an agent with Neverland Insurance. It was recently discovered that he had been using a tied selling technique to double his sales with each client.
Which one of the following organizations will take action against Callum’s conduct?
- A . The Canadian Insurance Services Regulatory Organizations.
- B . The provincial/territorial regulatory authority of the jurisdiction where Callum operates.
- C . The Canadian Council of Insurance Regulators.
- D . The Office of the Superintendent of Financial Institutions.
Joshua took out key person disability insurance for his computer engineer, Younes. Monthly benefits after a 60-day waiting period amount to $5,000 a month for 12 months with a replacement expense benefit rider of $2,500 a month. Following a ski accident, Younes remained in a coma. It took Joshua six months to find a replacement with the same knowledge and skills as Younes.
How much did Joshua receive from the insurer?
- A . $75,000
- B . $65,000
- C . $60,000
- D . $50,000
Group insurance and group annuity representative Zaheb recently sold a group insurance contract to Alumo Inc., a company that employs about 50 plant employees. This is the first time the company offers such a plan. The employees are asking the company questions about how the prescription drug plan works. They are especially surprised to see that the plan covers very few of the brand name drugs often prescribed by their physicians.
What should Zaheb do?
- A . Let Alumo answer its employees’ questions about the prescription drug plan because it is best placed to understand their concerns.
- B . Recommend that the employees consult the Medical Information Bureau’s (MIB) official website, which explains how prescription drug plans work.
- C . Put an employee information program in place to explain the rules of the prescription drug plan.
- D . Notify the insurer because it alone is able to explain the prescription drug plan rules to the employees.
Brian is a machinist. For the past seven years, he’s worked for a company that offers a group benefits plan. Under that plan, the premiums for long-term disability coverage are entirely paid by the employees. Last year, an injury forced Brian to stop working for eight months. After a four-month waiting period, during which he collected Employment Insurance (EI) benefits, Brian received long-term disability (LTD) benefits from the group plan’s insurer. Brian is now preparing his income tax return and wonders about the tax implications of the different benefits he received while on disability.
What statement accurately describes the tax treatment of Brian’s EI and LTD benefits?
- A . Both the EI benefits and LTD benefits are taxable income.
- B . The EI benefits are taxable income, the LTD benefits are tax-free.
- C . The EI benefits are tax-free, the LTD benefits are taxable income.
- D . Both the EI benefits and LTD benefits are tax-free.