Practice Free LLQP Exam Online Questions
Six years ago, when Kacey was working as an active firefighter, she purchased a $200,000 30-year term life insurance policy. At the time, the insurance company rated her policy. Recently, she changed roles and now works for the fire department’s public relations office, answering media calls and filling out paperwork. She meets with her insurance agent, Bernice, to ask if the insurer would consider reducing her premiums.
- A . The premiums cannot be increased once the policy is issued.
- B . The insurer cannot reduce the premium, but Kacey can apply for a new policy at a lower premium.
- C . The premiums can be reduced only if the policy has been in force for more than two years.
- D . Her premiums can be reduced since she is no longer a firefighter.
Naomie meets with her new client, Keisha, to review her investment portfolio. Keisha is a 43-year-old sales representative who has been with Belmont Inc., a large pharmaceutical company, for 15 years. She earns a generous salary, plus bonuses. She also has a group tax-free savings account (TFSA) and a defined contribution pension plan (DCPP), all of which are invested in Belmont common shares.
What main need does Naomie have to address regarding Keisha’s investments?
- A . Liquidity.
- B . Saving for an emergency fund.
- C . Diversification.
- D . Income.
Aaliyah is a 37-year-old account manager at a large pharmaceutical company. She earns $300,000 a year plus bonuses. She meets with Theo, an insurance agent, to review her life insurance needs. Theo deduces that Aaliyah needs a $250,000 universal life (UL) insurance policy. Aaliyah agrees but states that she wants to keep her premiums low.
Which of the following UL death benefit options would BEST suit her needs?
- A . Level death benefit.
- B . Level death benefit plus account value.
- C . Level death benefit plus cumulative premiums.
- D . Indexed death benefit.
President and sole shareholder of the Velos Tourisque company, Paul employs 50 people. Maryse, his financial security advisor, advises him to have his company take out life insurance on him.
Who will be the parties to the contract?
- A . Paul will be the policyholder, Velos Tourisque will be the insured and the beneficiary
- B . Velos Tourisque will be the policyholder and the insured; Paul, as the shareholder, can designate the beneficiary
- C . Paul will be the policyholder and insured; Velos Tourisque will be the beneficiary
- D . Velos Tourisque will be the policyholder and beneficiary; Paul will be the insured
Vintage Style Inc. is a clothing company with 20 employees participating in its group retirement and group insurance plan. Premiums for the group insurance plan are calculated on previous claims. If the benefits paid are lower than anticipated, the premiums may decrease at renewal. However, if the benefits paid are higher than anticipated, the premiums payable may be subject to an increase.
Which of the following funding formulas does Vintage use in its group insurance plan?
- A . Non-refund accounting.
- B . Refund accounting.
- C . Administrative services only.
- D . Claims experience.
Xavier meets and fills out an application form with Jose, an insurance representative, because he would like to purchase a critical illness insurance policy. When Jose asks Xavier about his alcohol consumption, Xavier admits he regularly drinks 10 beers a day.
What is the next step in the application process?
- A . The insurance company will automatically refuse the application.
- B . The insurance company will accept the application with an exclusion for alcohol consumption.
- C . Jose should refuse the request.
- D . Xavier will have to fill out a questionnaire detailing his alcohol consumption.
Vasu, an insurance agent, meets with Francine, his new client. Francine wants to purchase a disability insurance policy. Vasu helps her complete the application form. In the process, he collects all the required medical and lifestyle information on his client and wonders what he must do with the information he collected.
Which of the following options is CORRECT?
- A . Vasu must send a copy of the medical and lifestyle-related information to the insurer, his supervisor, and his client, and must keep a copy in his file.
- B . Vasu must send a copy of the medical and lifestyle-related information to the insurer, his supervisor, and keep a copy in his file.
- C . Vasu must send a copy of the medical and lifestyle-related information to the insurer and keep a copy in his file.
- D . Vasu must send a copy of the medical and lifestyle-related information to the insurer only, and he cannot keep a copy in his file.
Alec is sure he sent his insurer his annual life insurance premium payment. The insurer did not receive it, however. The insurer then sent Alec a notice of non-payment of premiums, but Alec had moved in the meantime. Therefore, he never got the notice, even though he had emailed his financial security advisor, Olivier, to inform him of his change of address. Unfortunately, Olivier was on a leave of absence and no one else in the firm took over the file. As a result, the policy lapsed. Alec sent Olivier’s firm several emails to complain, but no one responded.
Which organization can Alec turn to?
- A . The Canadian Life and Health Insurance Association
- B . The Chambre de la sécurité financière
- C . The Autorité des marchés financiers
- D . Assuris
Cecilia, a licensed life insurance agent, delivers a life insurance policy to her client Tony, a newly landed immigrant. Tony would like to pay the policy using the pre-authorized monthly payment method. However, he does not have a bank account in Canada yet and doubts he could find the time to open one in the next few days. Cecilia offers to open a savings account for him, but Tony is unsure whether she is licensed to do that.
What should Cecilia tell Tony to reassure him that she can open a savings account on his behalf?
- A . That licensed life insurance agents are authorized to sell bank products.
- B . That no license is required to act as a deposit broker.
- C . That she can open a savings account for him with no additional license because she delivered the life insurance policy to him beforehand.
- D . That she can open a savings account for him with no additional license so long as the initial deposit is less than $100,000.