Practice Free LLQP Exam Online Questions
Denise, age 45, is a member of her employer’s group insurance plan, which provides disability protection for 60% of her annual salary of $60,000. Louis, her 42-year-old spouse, is self-employed, has an annual income of $45,000, and no disability protection. As parents of three teenagers, Denise and Louis need $6,000 a month to meet their financial obligations with respect to such expenses as housing, food, car, clothing, and entertainment.
Which of the following best characterizes Denise and Louis’ current protection?
- A . The likelihood of Denise and Louis becoming disabled at the same time is almost zero. So, there is no need for additional protection.
- B . In the event Denise is disabled, she will receive $3,000/month. Along with Louis’ monthly income of $3,750, the couple will have no difficulty meeting their financial obligations, so there is no need for additional protection.
- C . Denise should increase her group insurance protection to cover 75% of her income.
- D . In the event Louis is disabled and has no monthly income, Denise’s income will be insufficient to meet the couple’s financial obligations. It is recommended that Louis take out insurance to protect up to 60% of his income.
Maeve is an Ontario resident. Fifteen years ago, she purchased a $250,000 whole life insurance policy and named her husband Guillaume as the primary beneficiary and her 4-year-old son Edwin as the contingent beneficiary. Last week, Tasha, Maeve’s insurance agent called her to ask if she has had any life changes that would warrant a meeting to review her insurance coverage. Maeve informs her that over the last year she divorced Guillaume and that she is now living with her new boyfriend Eduardo. Tasha asks to meet Maeve to review her beneficiary designation.
Who will receive Maeve’s death benefit if she dies today?
- A . Guillaume
- B . Edwin
- C . Eduardo
- D . Maeve’s estate
Last year, Ezekiel purchased a $100,000 life insurance policy and named his wife Jolene as an irrevocable beneficiary of the policy. Last week, Ezekiel returned home early from a business trip and decided to surprise his wife instead of calling ahead. He arrived at midnight and not wanting to wake her, entered the house from the back door and left the lights off. Not expecting the intruder to be her husband, Jolene stabbed him in the heart with a kitchen knife. She quickly realized her mistake and called 911. Unfortunately, Ezekiel died in the hospital from his wounds. The police deemed Ezekiel’s death as accidental, and no charges were filed.
Will the insurer pay the death benefit?
- A . Yes, because Ezekiel’s death was accidental, Jolene did not intend to kill him.
- B . Yes, because Jolene is the designated irrevocable beneficiary.
- C . No, because he died within the first 2 years of purchasing the policy.
- D . No, because Jolene caused his death.
Hana, a 25-year-old personal assistant, recently got a job where the employer offers all employees access to a defined contribution pension plan (DCPP). Hana meets with the group insurance agent, Tom, because she must choose her investments and she doesn’t know what she should choose. She is not very knowledgeable about investments, but since the money will only be used at retirement, she wants to invest in a fund that combines stocks and bonds and that is easy to understand.
Which fund should Tom suggest?
- A . Balanced Fund
- B . Bond Fund
- C . Dividend Fund
- D . Target date Fund
Kaamil meets with Omar, his insurance agent, to purchase a whole life insurance policy. Kaamil wants to name his wife Ofra as the irrevocable beneficiary of the policy.
Before proceeding, which of the following considerations should Omar CORRECTLY ask his client to reflect on?
- A . Ofra will be able to make a cash withdrawal without Kaamil’s consent.
- B . Ofra will be able to withdraw funds from Kaamil’s cash surrender value.
- C . Kaamil can surrender the policy without obtaining Ofra’s consent.
- D . Kaamil will need to obtain Ofra’s consent if he would like to revoke her as a beneficiary.
Kevin owns a construction business and wants to take out accident and sickness insurance to protect his income in the event of disability. On his application form, he indicated that he had competed in motocross races over the past five years.
What requirements does Kevin need to comply with before the insurer can issue the policy?
- A . Kevin only needs to answer the medical questions.
- B . Kevin only needs to specify how often he engages in the sporting activity.
- C . Kevin needs to complete a special questionnaire, as well as specify how often he engages or intends to engage in the sporting activity in the future.
- D . Kevin needs to complete a special questionnaire as well as specify how often he engages or intends to engage in the sporting activity in the future; thus, an exclusion rider may be required by the insurer.
Insurance of persons representative Véronique is meeting clients referred by an acquaintance for the first time. Observing some suspicious behaviours on their part, Véronique is thinking about reporting the transaction to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
Which behaviours are signs of suspicious transactions?
- A . The clients ask a lot of questions about internal controls and the amounts involved seem very high given their apparent financial situation
- B . The clients are in a hurry, the planned transaction is fairly simple, and they want to pay the amount due in cash
- C . The clients are in a hurry, do not seem interested in knowing the long-term benefits of the transaction, and want to pay the amount due in cash
- D . The clients seem interested in knowing the long-term benefits of the transaction, which is simple,
and the amounts involved seem very high given their apparent financial situation
Paola, an employee at Horizon Pharmaceuticals, was recently diagnosed with depression. She is unable to work and is receiving tax-free disability insurance benefits due to her condition. Paola is deeply indebted, and her creditors have been garnishing a portion of her pay for the last year. She is worried about her creditors also garnishing her disability benefit.
Can her disability benefits be seized by her creditors?
- A . Yes, disability insurance benefits are seizable.
- B . Yes, but creditors can only seize up to 50% of her benefit.
- C . No, because the benefits are tax-free.
- D . No, because she is disabled.
Anvi owns individual disability insurance that she purchased 5 years ago. At the time of application, she was a semi-professional boxer. Gamma Insurance Inc. offered her the disability policy with an exclusion stating that if she became disabled while boxing, the benefit would not be paid. This week, while reviewing her insurance needs with Tyron, her insurance agent, she mentions that she retired from boxing and wants to know how, or if, this will affect her policy.
What should Tyron tell her?
- A . The policy will be unaffected.
- B . The exclusion may be removed, but the premiums will remain the same.
- C . The exclusion may be removed, and the premiums will decrease.
- D . The exclusion may be removed, and the benefit will increase.
Josh is an established advisor who specializes in group benefits. He recently hired Bryan as a marketing manager. Bryan will be responsible for advertising and creating a social media platform for Josh’s company. Among other things, Bryan is developing a monthly electronic newsletter, which he plans to email to potential and existing clients. However, because this is a brand new initiative, none of the would-be recipients has subscribed to the newsletter or asked to receive any such communication from Josh’s company.
What law should Josh and Bryan be mindful of before sending their newsletter?
- A . The Personal Information Protection and Electronic Documents Act.
- B . The Canadian Anti-Spam Legislation.
- C . The Privacy Act.
- D . The rules governing the National Do Not Call List.