Practice Free LLQP Exam Online Questions
Andre, an insurance agent, meets with his client Jasper to discuss his $150,000 whole life insurance policy. Jasper is deeply indebted and needs at least $40,000 to cover his debt. Andre tells him about a company he knows that will be willing to give him $75,000 if he assigns his policy to them.
Did Andre act appropriately?
- A . No, because Jasper is not allowed to assign his policy to an arms-length entity.
- B . No, because trafficking in insurance is discouraged by the insurance industry.
- C . Yes, because he is helping his client pay off his debt.
- D . Yes, as long as this practice is not illegal in his province of residence.
Akeno is a 65-year-old retired accountant. He is divorced and has a 40-year-old son who is financially independent. Thanks to years of diligent savings, Akeno now enjoys a comfortable retirement. In addition to his pension income, he has over $300,000 invested in shares in his non-registered account. He lives in a mortgage-free home valued at $700,000 and owns a cottage valued at $500,000. The mortgage on the cottage is $100,000. Akeno purchased the homes 30 years ago when housing prices were low. It is important to him to donate $100,000 to the Alzheimer’s Association when he dies.
What is the GREATEST financial risk that would arise in the event of Akeno’s death?
- A . Loss of income.
- B . Debt repayment.
- C . Income tax.
- D . Estate creation.
Candace, an insurance agent, met with her client Rebecca on March 15th to complete a life insurance application form. Rebecca applied for a T-10 $200,000 life insurance policy, she told Candace that she will wait for her policy to be accepted before making a premium payment. On April 10th, the application was accepted by the insurance company and Candace promptly called Rebecca to give her the good news. Candace delivered the policy to Rebecca on April 15th during the meeting, Rebecca gave Candace a cheque to cover her first premium and a void cheque to cover subsequent premium payments. Candace submitted the cheques to her manager on April 21st.
When did Rebecca’s policy come into force?
- A . March 15th
- B . April 10th
- C . April 15th
- D . April 21st
Alex, aged 35, has worked for many years as a salesman in a small used car dealership. He earns $70,000 a year. He has no group insurance at work and no individual insurance. Single and without children, his priority is to save enough money to retire at age 60. He makes regular contributions to his RRSPs, in which he has accumulated $400,000. He owns a condo valued at $250,000 on which he has an uninsured mortgage of $150,000.
What financial risk is Alex most exposed to?
- A . Inflation.
- B . Loss of income.
- C . Longevity.
- D . Drop in standard of living.
Chloe is a newly licensed financial security adviser. She is diligently learning about the profession and wants to do her job properly. She wonders when she is required to renew her certificate.
Which of the following answers is CORRECT?
- A . Within 45 days following its expiry date.
- B . Within 15 days following its expiry date.
- C . Before it expires.
- D . If and when her personal situation changes.
(Priscilla is worried about losing her job in six months. She invests $1,000 per month in segregated equity funds but has limited cash savings.
What should her insurance agent, Arthur, advise?)
- A . She should stop buying the segregated funds only if she loses her job.
- B . She should stop buying the segregated funds now and build an emergency fund.
- C . She should sell her segregated funds immediately to provide an emergency fund.
- D . She should leverage her segregated funds immediately to provide cash for an emergency fund.
Insurance of persons representative Flavie meets with Julius to analyze his needs. At the end of the meeting, Flavie makes another appointment to present the results of the analysis and the proposed strategies. She hands Julius her business card, which says: “One of the company’s 10 best salespersons at your service!” Flavie even adds that she is the office’s top salesperson and earns more than $250,000 a year in commissions and bonuses.
What changes should Flavie make for her representation practices to comply with the obligations of an insurance of persons representative?
- A . Give her business card at the beginning of the meeting
- B . Remove the slogan from her business card
- C . Give her business card only at the second meeting
- D . Avoid disclosing the fact that she is paid by commission
Marvyn meets with his client, Edlyn, a 67-year-old retired widow who wants to purchase long-term care insurance. Edlyn receives monthly benefits from the Canada Pension Plan (CPP), Old Age Security (OAS), and a registered life annuity. She lives in a mortgage-free condo that she would like to bequeath to her son upon her death.
Given this information, which of the following is Edlyn looking to protect by purchasing long-term care insurance?
- A . Protection of loss of income.
- B . Protection of assets.
- C . Protection of savings.
- D . Protection of retirement income.
Ae-Cha starts working for the manufacturer, Premier Vibe Inc., a company that offers its employees group insurance with Sprout Life Insurance. Ae-Cha meets with Devon, the group insurance representative, and learns that her group plan includes $75,000 of life insurance coverage. Ae-Cha would like to know who designates the beneficiary on the life insurance.
- A . Premier Vibe Inc.
- B . Ae-Cha
- C . Devon
- D . Sprout Life
Benjamin is a financial security advisor working for the Larson Group. He is following a mandatory
compliance training session given by Andrew, the compliance manager. Andrew explains the
importance of following the Chambre de la sécurité financière code of ethics, and Benjamin would
like to know to whom the code of ethics applies.
What is Andrew’s CORRECT response?
- A . Financial planners and financial security advisors.
- B . Financial security advisors and their administrative assistants.
- C . Claims adjusters and group insurance plan advisors.
- D . Damage insurance agents and accident and sickness insurance representatives.