Practice Free LLQP Exam Online Questions
Pierre-Marc, aged 32, is a dentist with a rich clientele. His income is substantial. Five years ago, he purchased an “any occupation” disability insurance policy. Today he meets with Joseph, his life insurance agent, to determine whether this type of coverage is still adequate.
What should Joseph tell him?
- A . This type of coverage is adequate because it is more flexible. Pierre-Marc will be entitled to disability benefits even if he can work in another profession and chooses to do so.
- B . This type of coverage is adequate. Pierre-Marc will be entitled to disability benefits even if he can work in another profession, provided he chooses not to do so.
- C . This type of coverage is no longer adequate. Pierre-Marc should purchase an accidental death and dismemberment rider, which would allow him to collect a lump-sum benefit if he injures his hands.
- D . This type of coverage is no longer adequate. Pierre-Marc should purchase “own occupation” coverage, which would allow him to collect benefits even if he can work in another profession and chooses to do so.
Maxine meets with Toshiko, an insurance agent for United Life, to purchase a $10 million universal life insurance policy. Once United Life reviews Maxine’s file, they agree to insure her for $3 million. United Life then contacts Extra Life Company, who agrees to insure Maxine for the additional $7 million. Toshiko asks his supervisor Bob how the death benefit will be paid to Maxine’s beneficiary when she dies.
- A . United Life and Extra Life will each directly pay the beneficiary.
- B . Extra Life will issue a cheque for $10 million.
- C . United will issue a cheque for $10 million.
- D . The full death benefit will be paid by Assuris.
Sasha is an employee at PranaTech. The company offers all employees a pension plan. PranaTech must contribute into the plan, but employee contributions are not mandatory. Sasha chooses where his funds will be invested.
- A . Defined contribution pension plan.
- B . Defined benefit pension plan.
- C . Deferred profit sharing plan.
- D . Group registered retirement savings plan.
The primary and secondary beneficiaries of Rachel and Chad’s joint first-to-die permanent life insurance policy are each other and their adult children, respectively. Within a year of Rachel and Chad’s divorce, Rachel unexpectedly passes away. The policy beneficiaries remained as originally designated.
Whose claim will be paid by the insurer?
- A . Chad and the couple’s adult children jointly, as they were all designated as beneficiaries.
- B . The couple’s adult children, as they submitted a claim before Chad.
- C . Chad, as he was designated primary beneficiary.
- D . Rachel’s parents, as Rachel and Chad were divorced.
Tyler, a group insurance agent, is meeting with Yolanda, the director of his new group insurance client, Compact Funds Inc., to set up the company’s plan. Compact Funds employs over 30 employees, and Tyler recommends that they implement a contributory plan. Yolanda would like to understand what this means.
Which of the following statements about contributory plans is CORRECT?
- A . The insurer will bill each employee who will then ask for Compact Funds to credit a portion of the premiums on the payroll.
- B . The insurer will bill Compact Funds, and they will deduct the requisite premium from each employee’s paycheck.
- C . The insurer will bill Compact Funds and each employee individually.
- D . The insurer will bill each employee directly, and they will pay 100% of the premiums.
Axel owns a $150,000 whole life insurance policy with an accumulated cash surrender value (CSV) of $20,000. His monthly premiums are $300, due on the fifth day of each month. Axel misses his November 5 premium payment and then dies a few weeks later, on November 20.
- A . $0
- B . $149,700
- C . $150,000
- D . $169,700
After meeting with his advisor Monica, Tom agrees to apply for a $50,000 whole life insurance policy. Monica tells him that the monthly premium will be $40 per month. Monica is advised by underwriting that Tom qualifies for an additional $10,000 critical illness rider, and that the new premium would be $50 per month. Monica advises underwriting that Tom accepts the additional coverage without speaking with him first, because it is such a good deal and great coverage, he won’t mind. When Tom finds out what she has accepted on his behalf, without his knowledge, he is upset and wants to lodge a complaint to someone other than the insurance company and Monica; he wants to speak with an independent third party. He finds the contact information for the local regulatory authority.
What are some of the responsibilities the regulatory authority has in protecting clients like Tom?
- A . Promoting transparency, taking action against breaches of conduct, and giving clients avenues to resolve individual complaints (e.g., OmbudService for Life and Health Insurance).
- B . Promoting transparency, reimbursing financial losses suffered by clients, and giving clients avenues to resolve individual complaints.
- C . Promoting transparency, educating the public, and organizing class action lawsuits against insurers.
- D . Taking action against breaches of conduct, increasing the public’s financial knowledge (such as understanding financial concepts), and closing insurance offices that are non-compliant.
Mark and Jesse had a joint life insurance policy which they purchased on the advice of their insurance agent, recognizing that if one of them died, the other would need an insurance benefit to pay off their mortgage and for final expenses. Coverage is $450,000. Last week their car went off the road in a snowstorm. Both were declared dead at the scene. The two had named their adult nephew, Louis, as contingent beneficiary.
What is the amount of the benefit the insurer will pay Louis?
- A . $225,000.
- B . $450,000.
- C . $675,000.
- D . $900,000.
Oscar is a chartered accountant who owns and operates his own firm, Tax Time Ltd., with the help of five employees. The provincial accountants’ association offers group benefits plans to its members’ firms. Oscar recently contacted the association to have a group benefits plan quoted and put in place for his firm.
Who will be the plan sponsor?
- A . Oscar.
- B . Tax Time Ltd.
- C . The provincial accountants’ association.
- D . The insurer providing the group insurance benefits.
Aadi is retiring from Scotia Grand, his employer of 25 years. While employed, Aadi benefitted from the company’s deferred profit sharing plan (DPSP) and over the years, he accumulated $75,000.
Where should Aadi transfer these funds on a tax-deferral basis, now that he is retired?
- A . A group tax-free savings account (TFSA).
- B . A group registered retirement income fund (RRIF).
- C . A group life income fund (LIF).
- D . A locked-in retirement account (LIRA).