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Life License Qualification Program (LLQP)

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Total Questions : 328

Dive into our fully updated and stable LLQP practice test platform, featuring all the latest Life License Qualification Program exam questions added this week. Our preparation tool is more than just a IFSE Institute study aid; it's a strategic advantage.

Our free Life License Qualification Program practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about LLQP. Use this test to pinpoint which areas you need to focus your study on.

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Question # 91

Jean, who is in business, would like to understand why his segregated funds, which resemble mutual funds, allow this type of asset to be sheltered from creditors. How should Patrice, his financial security advisor, answer?

Options:

A.  

The reason is that segregated funds are offered through an annuity policy, and by law, annuities offer a certain measure of protection if the beneficiary is the legal spouse or the policyholder’s ascendant or descendant, or an irrevocable beneficiary

B.  

The reason is that segregated funds are governed by the AMF’s Guideline on Individual Variable Insurance Contracts Relating to Segregated Funds, which states that these products are exempt from seizure

C.  

The reason is that anything offered by a life insurer can be exempt from seizure if a beneficiary is designated, except for contributions in the last year

D.  

The reason is that mutual funds do not offer a guarantee and it’s the guarantee offered by segregated funds, which ensures it is an insurance contract and which therefore allows funds to be free from creditors

Discussion 0
Question # 92

Julie and Jim have been married for 16 years and decide to divorce. They draw up a list of property that will be partitioned based on the provisions of family patrimony: the family home, the cars, the RRSPs, and the benefits accrued with the RRQ during the marriage. What other items should be added to Julie and Jim's list?

Options:

A.  

TFSAs

B.  

Bank accounts and TFSAs

C.  

Life insurance policy cash surrender values

D.  

Nothing else

Discussion 0
Question # 93

Insurer ABC analyzed the disability claim of Monique, who says she is going through a serious depression that is keeping her from being able to do her work. Unfortunately, the insurer believes that Monique is fit to work. She asked the insurer to revise her position but has received a final letter from the insurer refusing to pay her short-term disability benefits. What recourse does Monique have if she does not want to consult a lawyer just yet?

Options:

A.  

Lodge a complaint with the Chambre de la sécurité financière and the syndic

B.  

Lodge a complaint with the Office of the Superintendent of Financial Institutions

C.  

Lodge a complaint with the OmbudService for Life & Health Insurance and the AMF

D.  

Lodge a complaint with the Canadian Life and Health Insurance Association

Discussion 0
Question # 94

Ming-Na is a McGill University graduate interested in pursuing a career as an insurance of persons representative. She wants to know which piece of legislation sets out the definition and role of insurance of persons representatives.

Which of the options below is CORRECT?

Options:

A.  

The Insurers Act.

B.  

The Distribution Act.

C.  

The Act respecting insurance.

D.  

The Act respecting prescription drug insurance.

Discussion 0
Question # 95

Surjit and Rajbir got married in 2010, and Surjit named Rajbir as the irrevocable beneficiary of his life insurance contract. In 2017, the couple divorced amicably, and Surjit met with his insurance representative, Ivan, to review his plans. Surjit tells Ivan that he would like to keep Rajbir as his beneficiary.

What should Ivan counsel his client to do?

Options:

A.  

Surjit does not need to do anything as Rajbir is already the named beneficiary.

B.  

Surjit cannot make any changes to the policy without Rajbir’s consent, as she is the irrevocable beneficiary of his policy.

C.  

Surjit should name a different beneficiary now that he is divorced.

D.  

Surjit should once again designate Rajbir as the beneficiary.

Discussion 0
Question # 96

Alexandre has just become a father. He wishes to take out a life insurance policy from Antoine, an insurance of persons representative. During their meeting, Alexandre mentions his love of mountain climbing. What should Antoine do?

Options:

A.  

Warn Alexandre that no insurer covers activities such as mountain climbing, which are considered legal exclusions under the Civil Code of Quebec

B.  

Check and explain the policy’s exclusion clauses, because the insurer could turn down the claim if Alexandre dies while mountain climbing

C.  

Specify that the Charter of Human Rights and Freedoms only allows exclusions based on age, gender, or civil status in insurance contracts

D.  

Explain only the insurance policy’s general coverage clauses

Discussion 0
Question # 97

Which organization provides protection for holders of segregated fund contracts in Canada if the insurer becomes insolvent?

Options:

A.  

Canadian Deposit Insurance Corporation

B.  

Canadian Insurance Services Regulatory Organizations

C.  

Assuris

D.  

OmbudService for Life & Health Insurance

Discussion 0
Question # 98

Adèle retired a few months ago. She sold some of her assets and would like to use the funds to take out a term annuity to increase her retirement income. Adèle brings a $300,000 cheque to Germain, her financial security advisor, and wants to begin receiving lifetime guaranteed benefits in one month with the right to use capital in the event of an emergency. When Germain tells her about alienating capital, the capitalization phase, and the payment phase, Adèle becomes confused and asks for clearer explanations. What can Germain say to help Adèle understand?

Options:

A.  

If her capital is alienated now, i.e., if ownership of the money is transferred to the insurer, the insurer will be able to guarantee all the conditions of the annuity. Since the first benefit will be paid in a month, the contract will automatically be in the payment phase

B.  

The alienation will allow Adèle to keep ownership of the capital and use it in the event of an emergency. The capitalization phase will enable the insurer to grow the capital before paying the annuity

C.  

The contract will be a deferred annuity contract for one month and will be in the accumulation phase until the insurer takes possession of the $300,000 in capital. For benefits to be paid, the contract will enter the payment phase

D.  

To grow the transferred capital and pay the annuities as planned, the contract will be an immediate annuity contract in the capitalization phase until the annuity’s guaranteed phase expires. The contract will then enter the payment phase

Discussion 0
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