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New IFSE Institute LLQP Dumps & Questions Updated on 2026
IFSE Institute LLQP Exam Syllabus Topics:
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NEW QUESTION # 141
Eric is a group benefits specialist and he is meeting with Lionel to review his company's benefits plan after it has been in force for one year. The biggest issue to bring up with Lionel is that his premiums are going to increase. What is the reason as to why the premiums would increase after one year?
- A. Age of employees.
- B. Claims experience.
- C. Nature of the business.
- D. Commission to specialist.
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
Group insurance premiums are adjusted annually based onclaims experience-the ratio of claimspaid to premiums collected (Chapter 8:Group Plan Specifics). High claims increase premiums.
Option A: Age affects initial rates, not annual adjustments unless specified.
Option B: Correct; claims experience directly drives premium changes.
Option C: Business nature sets initial risk, not yearly changes.
Option D: Commissions are fixed, not tied to claims.
Reference: LLQP Accident and Sickness Insurance Manual, Chapter 8:Group Plan Specifics.
NEW QUESTION # 142
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. The provincial accountants' association.
- C. The insurer providing the group insurance benefits.
- D. Tax Time Ltd.
Answer: D
Explanation:
Comprehensive and Detailed in Depth Explanation with Exact Extract from Documents and Guides:
In group insurance, the plan sponsor is typically the employer or entity that establishes and maintains the group benefits plan for its employees or members. TheIFSE Ethics and Professional Practice Course (Common Law)explains that the sponsor is responsible for arranging the plan, often in collaboration with an insurer or association, but it is the employer (or firm) that formally sponsors it for its employees. Here, Tax Time Ltd., as Oscar's firm, is the employer entity setting up the plan for its five employees, making it the plan sponsor. Oscar, asan individual, is not thesponsor; the association facilitates the plan but does not sponsor it for Tax Time Ltd.'s employees; and the insurer provides the coverage but does not act as the sponsor. Thus, option B is correct.
References:
IFSE Ethics and Professional Practice Course (Common Law), Module 3: Group Insurance, Section on "Roles in Group Plans."
NEW QUESTION # 143
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?
- A. Nothing else
- B. Life insurance policy cash surrender values
- C. Bank accounts and TFSAs
- D. TFSAs
Answer: C
Explanation:
Comprehensive and Detailed In-Depth Explanation: Under Quebec's Civil Code, specifically within the framework of family patrimony (Articles 414-426), the partition of property upon divorce includes assets acquired during the marriage that are designated as part of the family patrimony. The family home, cars, RRSPs (Registered Retirement Savings Plans), and benefits accrued under the RRQ (Regie des rentes du Quebec, or Quebec Pension Plan) are already listed, as they are explicitly included under Article 415.
However, family patrimony also encompasses other property used for the family's benefit, such as bank accounts that hold funds accumulated during the marriage for family use. TFSAs (Tax-Free Savings Accounts) are individual savings accounts, but if they were used for family purposes or funded with marital income, they could also be considered. The Ethics and Professional Practice (Civil Law) manual emphasizes thatadvisors must ensure clients fully understand the scope of divisible assets under family patrimony rules to avoid omissions. Life insurance cash surrender values (option C) are not automatically included in family patrimony unless designated for family use, and "nothing else" (option D) overlooks additional divisible assets like bank accounts. Option B, "Bank accounts and TFSAs," correctly expands the list to include other relevant marital property, aligning with the Civil Code's broad interpretation of family patrimony.
References: Civil Code of Quebec, Articles 414-426; Ethics and Professional Practice (Civil Law) Manual, Section on Family Patrimony.
NEW QUESTION # 144
Jack is excited to be joining his new employer, which offers group medical, dental, and retirement benefits to its employees. For his meeting with Human Resources, he brings his completed application form for medical and dental coverage, as well as a form to contribute to the GRRSP, since his employer matches contributions.
The HR representative returns his application forms for group benefits to Jack and tells him that he is not eligible until certain conditions are met.
When might Jack become eligible?
- A. After the number of days required by law to contribute to his GRRSP.
- B. At the end of a standard waiting period.
- C. At the end of his GRRSP contribution vesting period.
- D. On the group plan's renewal date.
Answer: B
Explanation:
Under the LLQP Group Benefits and Group Savings curriculum, eligibility for group insurance benefits such as medical and dental coverage is typically subject to a waiting period, especially for new employees. This waiting period is a standard feature of group insurance contracts and is designed to manage risk for the insurer by preventing immediate claims shortly after employment begins.
A waiting period usually lasts between three and six months, depending on the terms of the group policy.
During this time, employees may complete enrolment forms, but coverage does not become effective until the waiting period has been satisfied. This principle applies regardless of whether the employee is otherwise eligible or intends to participate in other employer-sponsored plans.
The key distinction in this question is between group insurance benefits (medical and dental) and group savings plans such as a GRRSP. While Jack's employer offers both, eligibility rules differ. A GRRSP often allows employees to begin contributing immediately upon employment, and employer matching contributions may vest over time. However, vesting schedules relate only to ownership of employer contributions, not to eligibility for participation in group insurance coverage. Therefore, Option B is incorrect.
Option A is also incorrect because there is no legislated waiting period tied to GRRSP contributions that governs eligibility for group insurance benefits. Option C is incorrect because group plan renewal dates apply to the employer's contract with the insurer, not individual employee eligibility.
The LLQP study materials emphasize that group insurance eligibility is most commonly determined by a standard waiting period, which must be completed before coverage becomes effective. Once this period ends, Jack will become eligible to participate in the medical and dental plans.
Therefore, based on LLQP-approved group benefits rules, the correct and fully verified answer is Option D:
At the end of a standard waiting period.
NEW QUESTION # 145
(Philippe, age 50, has been a widower for six months. He inherited the money in his wife's pension fund, which he transferred to a LIRA. He also received a $150,000 life insurance benefit. Philippe works for a private firm as an IT analyst and earns $80,000 a year. He would like to retire at age 60.
What income sources will be available to Philippe if he retires at age 60?)
- A. OAS, the GIC and the RRSP.
- B. CPP/QPP, the GIC and the RRSP.
- C. The LIRA, the GIC and the RRSP.
- D. The LIRA, the GIS and the RRSP.
Answer: C
Explanation:
Philippe will have access to hisLIRA, theGIChe invested in, and anyRRSPsor similar savings. CPP/QPP and OAS are not typically available until later (after 60 or 65), and GIS is for low-income individuals, which Philippe is not.
Exact Extract:
"A LIRA can be converted to a Life Income Fund (LIF) starting at age 55, allowing withdrawals. RRSPs can also be accessed by converting to RRIFs. GICs are fully redeemable based on terms. Eligibility for GIS and OAS typically starts at 65 years." (Reference:LifeInsur-E311-2022-10-9ED, Chapter 1 Retirement Income Options)
NEW QUESTION # 146
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; thus, an exclusion rider may be required by the insurer.
- 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.
Answer: C
Explanation:
Comprehensive and Detailed Explanation:
Motocross is high-risk, requiring a detailed questionnaire and frequency disclosure. Insurers may impose an exclusion rider (Chapter 7:Insurance Recommendation, Contract, and Service Needs).
Option A: Incorrect; misses activity risk.
Option B: Incomplete; lacks detail.
Option C: Incomplete; misses exclusion possibility.
Option D: Correct; full process with potential rider.
Reference: LLQP Accident and Sickness Insurance Manual, Chapter 7:Insurance Recommendation, Contract, and Service Needs.
NEW QUESTION # 147
Emma, an employee at MagicLand, is part of the company's group registered retirement savings plan (RRSP).
During her tenure, she accumulated over $70,000 in the plan and all of her contributions are invested in segregated funds. She meets with Jun to invest in an individual segregated fund. Jun tells her that there are some differences between group and individual segregated funds.
How are Emma's group segregated funds DIFFERENT from an individual segregated fund?
- A. They have lower management expense ratios (MERs).
- B. They have higher sales charges.
- C. They charge switching fees.
- D. They offer death benefit guarantees at a special rate.
Answer: A
Explanation:
Group segregated funds typically have lower Management Expense Ratios (MERs) than individual segregated funds because group plans benefit from economies of scale and pooled investment options. LLQP highlights that group plans often have reduced fees compared to individual plans due to collective investment and reduced administrative costs.
Options A and B are incorrect as group plans typically feature lower costs and don't often charge switching fees. Option C is incorrect as individual segregated funds typically have more flexible death benefit guarantee options, not special rates in group plans.
NEW QUESTION # 148
(Miles receives a $500,000 inheritance. He wants to invest it in a high-risk segregated fund but is nervous about potential losses.
What unique advantage of segregated funds enables Miles to pursue this strategy?)
- A. The ability to reset
- B. The exemption from probate
- C. The maturity guarantee
- D. The tax benefit of capital losses
Answer: C
Explanation:
Thematurity guaranteein a segregated fund protects a minimum portion (often 75% or 100%) of the initial investment at maturity, even if high-risk investments underperform. This allows Miles to take risks while having downside protection.
Exact Extract:
"The maturity guarantee protects a minimum portion of the original investment at contract maturity date, even if the underlying investment loses value." (Reference:Segfunds-E313-2020-12-7ED, Chapter 2.1.1.1 Maturity Guarantee)
NEW QUESTION # 149
(Vanessa, a grandmother, wants to set up a savings account for her six-month-old granddaughter Brienne's future education, making a lump sum and regular contributions.
Which account is best suited?)
- A. An RESP with Brienne as beneficiary
- B. A TFSA in Tanya's name
- C. An RRSP in Brienne's name
- D. A TFSA in Vanessa's name
Answer: A
Explanation:
ARegistered Education Savings Plan (RESP)is specifically designed to fundeducation savingsand allows contributions for a named beneficiary (Brienne), making it the perfect choice.
Exact Extract:
"An RESP is an education savings plan sponsored by the government, providing grants and tax-deferral advantages for beneficiaries saving for post-secondary education." (Reference:Segfunds-E313-2020-12-7ED, Chapter 1.3.11.3 Group Plans and Registered Education Savings Plans)
NEW QUESTION # 150
Jasper owns TeleVida, a successful production company with over 50 employees. He wants to expand the company by opening an office in another province. Jasper needs to take out a $500,000 20-year loan to make this expansion happen. However, he wants to make sure that if he dies while there's an outstanding balance on the loan, the balance will be paid in full by the insurance company.
- A. Universal life insurance policy.
- B. Term-100 life insurance policy.
- C. 20-year term life insurance.
- D. 20-year decreasing term life insurance.
Answer: D
Explanation:
In this case, Jasper is concerned with covering a specific loan balance that will decrease over time as the loan is repaid. A20-year decreasing term life insurancepolicy is typically used for situations where the coverage amount decreases over the policy term, aligning with the declining balance of a loan. This is often the most cost-effective option, as the coverage amount decreases in line with the outstanding loan balance, ensuring that the insurance will pay off any remaining loan balance if Jasper dies within the 20-year term.
Other options, such as a standard term policy with a level benefit (Option B), a Term-100 (Option C), or a Universal Life policy (Option D), provide level or flexible coverage not specifically suited to decreasing liabilities like a loan. Therefore,Option Ais the best choice to meet Jasper's needs cost-effectively.
NEW QUESTION # 151
The company Xtra is growing. Mr. Trenet, chair of the executive committee, invites his financial security advisor, Noah, to meet with them to underwrite an annuity contract. The treasurer of Xtra offers to invest
$2,500,000 of the company's retained earnings. Before voting on a resolution to designate a policyholder, the treasurer asks Noah if Xtra can be designated as the policyholder instead of Mr. Trenet. What answer should Noah give?
- A. For Xtra to become the subscriber of the contract, the investment amount must come from aregistered plan, such as a retirement fund
- B. Only an individual can be a policyholder; therefore, Noah can recommend that Mr. Trenet be the policyholder
- C. Because Xtra is a legal person, Xtra can be the policyholder; Mr. Trenet must be the subrogated annuitant to approve decisions on behalf of Xtra
- D. If the capital is not registered, Xtra can be the policyholder
Answer: D
Explanation:
Comprehensive and Detailed In-Depth Explanation: Under the Civil Code of Quebec (Article 2415), a policyholder (or subscriber) is the entity that owns and pays for an insurance or annuity contract, which can be an individual or a legal person like a corporation. Xtra, as a company, can use its retained earnings (unregistered capital) to fund an annuity contract and be designated as the policyholder, making option D correct. Option A is false, as legal persons can own contracts (e.g., group insurance). Option B's requirement of a registered plan is incorrect-annuities can be funded with non-registered funds. Option C introduces a
"subrogated annuitant," a misnomer here, as the annuitant is the person receiving payments, not a decision- maker, and no such requirement exists. The LLQP and Ethics manual confirm that corporations can be policyholders for business purposes, like key person coverage or investments.
References: Civil Code of Quebec, Article 2415; LLQP Module on Annuities; Ethics and Professional Practice (Civil Law) Manual, Section on Contract Ownership.
NEW QUESTION # 152
Gary owns a $500,000 T-20 life insurance policy with an accidental death rider of $250,000. His estate is named as beneficiary. Gary dies when his car falls into a lake. The autopsy shows that he had a heart attack, which caused his death and led to the accident.
What death benefit amount will the life insurance company pay Gary's estate?
- A. $750,000, because Gary's death meets the definition of accident in the contract.
- B. $750,000, because the accident was caused by the heart attack.
- C. $500,000, because the death is due to the heart attack and not the car accident.
- D. $500,000, because accidental death cannot be added to term coverage.
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
The LLQP defines accidental death as resulting solely from accidental means, not from a medical condition. Since the heart attack was the proximate cause of death (not the accident itself), the accidental death rider does not apply. Only the base $500,000 will be paid.
NEW QUESTION # 153
A few months ago, Urmish filed a complaint to the Autorite des marches financiers (AMF) about the services he received from his insurance agent, Jaba. The complaint was heard by the discipline committee, and Jaba was found guilty and ordered to pay a $10,000 fine. Jaba is upset and does not agree with the verdict. She would like to appeal the verdict.
Which of the following statements is CORRECT?
- A. A decision made by the discipline committee may be appealed to the AMF.
- B. A decision made by the discipline committee cannot be appealed.
- C. A decision made by the discipline committee may be appealed to the Chambre de la securite financiere (CSF).
- D. A decision made by the discipline committee may be appealed to the Court of Quebec.
Answer: D
NEW QUESTION # 154
Dora meets with the following clients, each of whom fills out a disability insurance application:
* Scott, a ski instructor who skydives every weekend in the summer,
* Lamar, a librarian who drives to work daily and spends his free time collecting stamps and watching nature shows,
* Timothy, an administrative assistant who walks 30 minutes each way to and from work, and
* Yashar, an accountant who participates in 5 online chess competitions a week and studies chess in his spare time.
All else being equal, which of Dora's clients will qualify for the most favorable insurance premium?
- A. Scott
- B. Lamar
- C. Timothy
- D. Yashar
Answer: B
Explanation:
Insurance premiums are typically based on risk factors such as occupation and lifestyle. Among the clients listed,Lamar, the librarian, has the lowest-risk lifestyle and occupation. Librarians are generally considered low-risk occupations for disability insurance, and his hobbies (collecting stamps and watching nature shows) carry no added risk factors. Scott's high-risk activities (skiing and skydiving) would likely lead to higher premiums, while Lamar's low-risk profile qualifies him for the most favorable premium, according to LLQP underwriting principles.
NEW QUESTION # 155
Larry, an insurance agent, meets with Ethan, a freelance photographer, to review his insurance needs. Larry tells Ethan that he wants to collect all pertinent financial information to prepare a net worth statement for Ethan.
Why does Larry want to prepare Ethan's net worth statement?
- A. To determine if Ethan has enough resources to cover medical expenses if he had a medical emergency.
- B. To determine how much Ethan can spend on accident and sickness insurance premiums.
- C. To have enough information to identify where Ethan spends his money.
- D. To determine Ethan's various sources of income.
Answer: A
Explanation:
Anet worth statementassesses an individual's total financial assets and liabilities, providing insight into their overall financial health. For Ethan, as a freelance photographer, understanding his net worth is essential to determine whether he has sufficient resources to manage unexpected expenses, such as medical costs from a potential emergency. This assessment helps Larry gauge Ethan's ability to withstand financial shocks, which is crucial when planning for accident and sickness insurance coverage. While cash flow statements provide details on income and expenses, net worth statements are specifically used to evaluate financial resources available for emergencies.
NEW QUESTION # 156
Valerie, age 42, recently left her job after 15 years of service. She participated in a defined contribution pension plan and had accumulated benefits amounting to $88,000, eligible for transfer into a registered contract. What must Valerie do with this money?
- A. Transfer this sum into a LIRA and convert the accumulated value into a life annuity or LIF no later than December 31 of the year she turns 71
- B. Transfer this sum into an RRSP and convert the accumulated value into a life annuity or RRIF no later than December 31 of the year she turns 71
- C. Transfer this sum into a RRIF and start withdrawing annuity payments no later than the end of the following calendar year
- D. Transfer this sum into a LIRA and convert the accumulated value into a life annuity or RRIF no later than December 31 of the year she turns 71
Answer: A
Explanation:
Comprehensive and Detailed In-Depth Explanation: Pension funds from a defined contribution plan, upon leaving employment, must follow Quebec's Supplemental Pension Plans Act (SPPA) and federal tax rules.
The $88,000 is "locked-in," meaning it cannot be cashed out and must be transferred to a Locked-In Retirement Account (LIRA) to preserve its pension status (SPPA,Section 98). A LIRA restricts access until retirement, when it must be converted into a life annuity or Life Income Fund (LIF) by December 31 of the year the holder turns 71 (Income Tax Act, Section 146). Option D correctly identifies the LIRA and LIF
/annuity options. Option A (RRSP) applies to non-locked-in funds, not pension benefits. Option B's "RRIF" is incorrect, as locked-in funds use a LIF in Quebec. Option C (immediate RRIF withdrawal) violates locking- in rules and age requirements. The Ethics manual requires advisors to clarify locked-in fund rules for clients.
References: Supplemental Pension Plans Act, Section 98; Income Tax Act, Section 146; Ethics and Professional Practice (Civil Law) Manual, Section on Retirement Planning.
NEW QUESTION # 157
Life insurance agent Travis is preparing to meet with a new client. Over the phone, the client mentioned having about $3,000 that he intends to invest in a segregated fund within his TFSA. Travis and the client have not interacted much previously, so he expects there will be some discussion before a suitable product is selected. Still, Travis believes it is likely the client will end up signing an application form today.
Besides the application form, which of the following documents must Travis bring to ensure that the requirements for opening the account are met?
* A Pre-Authorized Contribution (PAC) form
* An information folder
* A third-party determination form
* The Fund Facts
* Annual audited financial statements for the funds
- A. 2, 4, and 5 only
- B. 2 and 4 only
- C. 1 and 2 only
- D. 2, 3, and 4 only
Answer: D
Explanation:
According to the LLQP Segregated Funds and Annuities curriculum and regulatory requirements governing insurance-based investments, certain documents must be provided or completed at the time a segregated fund contract is sold. These requirements are designed to ensure client disclosure, informed consent, and compliance with anti-money laundering (AML) and consumer protection rules.
First, an information folder is mandatory. The LLQP study guide explains that insurers must provide clients with an information folder before or at the time the contract is issued. This folder outlines the nature of segregated funds as insurance contracts, explains guarantees, fees, risks, and the client's right of rescission.
Without this document, the disclosure requirement is not met.
Second, Fund Facts (also referred to in insurance as Fund Facts-like disclosure documents) must be provided for each segregated fund selected. These documents summarize key information such as investment objectives, historical performance, fees, and risks in a standardized format. The LLQP curriculum emphasizes that Fund Facts must be delivered before or at the point of sale, even if the final fund selection occurs during the meeting.
Third, a third-party determination form is required under AML legislation whenever there is a possibility that someone other than the client may be contributing funds or exercising control. Since the client is investing a lump sum and Travis has limited prior relationship with him, the third-party determination form must be completed to confirm whether the funds belong solely to the client or to someone else.
The other documents are not mandatory in this scenario. A Pre-Authorized Contribution (PAC) form is only required if the client chooses to set up automatic ongoing contributions, which has not been indicated. Annual audited financial statements are publicly available but do not have to be physically provided at the time of sale.
Therefore, based strictly on LLQP Segregated Funds and Annuities regulatory and disclosure requirements, the correct answer is Option C: 2, 3, and 4 only.
NEW QUESTION # 158
Paulette earns a modest income working as a delivery driver for FastFlowers Inc. in Quebec. The florist company has over 80 employees, 20 of whom are delivery drivers. The employees benefit from a group short- and long-term disability plan. One morning, while delivering flowers, Paulette's truck is struck by a bus.
Paulette is taken to the hospital, where a doctor deems that she will be unable to work for at least 4 months.
Paulette contacts Jade, the human resources manager, to ask her who will pay her disability benefits.
Which of the following answers is CORRECT?
- A. Her group insurance.
- B. Commission des normes, de l'equite, de la sante et de la securite du travail (CNESST).
- C. Employment insurance (EI).
- D. Societe de l'assurance automobile du Quebec (SAAQ).
Answer: A
Explanation:
Paulette is covered under her employer's group disability insurance plan, which provides both short- and long- term disability benefits. Since her injury occurred while working, the group insurance provided by FastFlowers Inc. would be responsible for paying her disability benefits. Group insurance plans typically cover workplace injuries for employees and compensate for lost income during recovery.
Although other options like the SAAQ may provide benefits for accidents involving vehicles, Paulette's disability benefit is specifically covered under her employer's insurance because it is job-related.
NEW QUESTION # 159
Paula is a business owner and likes to make important decisions herself. Her business is very successful and she has lots of disposable income. She has a self-direct investment account where she chooses the investment herself. However, despite doing some researches on investment, her own portfolio ends up with major losses.
She just gave birth to a new born baby and would like to have some life insurance coverage for her children's expense in the event of her death. She wants a plan that can provide additional coverage over time and allows her to cover the effect of inflation as well, as she has lost confidence on making investment decisions.
What insurance plan can fit Paula's need?
- A. Whole life with GIB rider
- B. Universal life with YRT with maximum funding option
- C. Universal life with LCOI with minimum funding option
- D. Whole life with PUA rider
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
Whole life with Paid-Up Additions (PUA) riderallows the policy to grow coverage over time, addressing inflation and providing stable guaranteed values. PUA also removes the need forinvestment decisions, aligning with Paula's new financial preferences. LLQP identifies this structure as ideal for inflation-protected and predictable growth.
NEW QUESTION # 160
(Julia deposited capital into an annuity contract that will start payments in three years and continue for
10 years. She is the annuitant; her son Ethan is the beneficiary.
What type of annuity has Julia purchased?)
- A. An immediate payout term annuity with no guarantee.
- B. An accumulation 10-year term annuity.
- C. An immediate accumulation term annuity with a 10-year guarantee.
- D. A deferred payout 10-year term annuity.
Answer: D
Explanation:
Adeferred payout term annuityinvolves depositing funds now with payments starting after a deferment period (in Julia's case, 3 years) and continuing for a set term (10 years).
Exact Extract:
"A deferred payout annuity begins income payments after a specified deferment period. If a fixed period is selected, it is known as a term annuity." (Reference:Segfunds-E313-2020-12-7ED, Chapter 3.2.1.1 Payout Annuity)
NEW QUESTION # 161
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?
- A. Surjit should name a different beneficiary now that he is divorced.
- 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 once again designate Rajbir as the beneficiary.
- D. Surjit does not need to do anything as Rajbir is already the named beneficiary.
Answer: D
Explanation:
An irrevocable beneficiary designation remains valid even after a divorce unless the policyholder, with the irrevocable beneficiary's consent, decides to change it. As Surjit wishes to retain Rajbir as his irrevocable beneficiary, no additional steps are required. The designation's irrevocability ensures Rajbir's right to the policy benefits remains intact without needing re-confirmation. This complies with the provisions on irrevocable beneficiaries outlined in Quebec's Civil Code and reinforced by LLQP standards on irrevocable beneficiary designations.
NEW QUESTION # 162
Eric is an architect who owns his own firm. He employs three staff and is in his fifth year of operation. While recently meeting with his insurance agent for an annual review of his coverage, he mentioned to the agent that he had recently purchased a new printing system and has a sizeable loan on it. In the event of disability, what type of insurance coverage could the agent suggest to ensure the loan payments are made?
- A. Key person disability insurance.
- B. Business loan protection disability insurance.
- C. Disability buyout insurance.
- D. Business overhead expense disability insurance.
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
Business loan protection disability insurance covers loan payments if the owner is disabled, directly addressing Eric's need (Chapter 5:Insurance to Protect Businesses).
Option A: Incorrect; protects business operations.
Option B: Incorrect; covers overhead, not loans.
Option C: Incorrect; for buy-sell agreements.
Option D: Correct; targets loan payments.
Reference: LLQP Accident and Sickness Insurance Manual, Chapter 5:Insurance to Protect Businesses.
NEW QUESTION # 163
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 benefit pension plan.
- B. Deferred profit sharing plan.
- C. Defined contribution pension plan.
- D. Group registered retirement savings plan.
Answer: C
Explanation:
Sasha's plan allows him to choose his own investments, and the company is required to contribute, while his own contributions are optional. This structure is indicative of a Defined Contribution Pension Plan (DCPP). In a DCPP, the employer contributes a fixed amount to the employee's retirement plan, and employees often have control over how their funds are invested. Employee contributions are typically voluntary, as outlined by LLQP guidelines on pension plans.
Options B, C, and D do not match because Defined Benefit Plans do not provide investment choice, DPSPs usually have discretionary employer contributions, and group RRSPs are not pension plans and typically involve mandatory employee contributions.
NEW QUESTION # 164
Six years ago, Diu purchased an immediate life annuity with a 10-year guarantee period. The annuity paid her a monthly benefit of $1,800. She named her son Shan as the beneficiary of the policy and her niece Haru as a contingent beneficiary. Shan died four months ago in a motorcycle accident and between grieving and planning the funeral, Diu forgot to update her beneficiary designation. Last week, Diu died of a heart attack.
Who would receive the annuity benefits?
- A. Haru
- B. Shan's estate
- C. Diu's estate
- D. Shan's widow
Answer: A
Explanation:
Since Diu had designated her son Shan as the primary beneficiary and her niece Haru as the contingent beneficiary, the death benefit from the annuity will pass to Haru, the contingent beneficiary, after Shan's death. In annuity contracts, if the primary beneficiary predeceases the annuitant and no changes are made to the designation, the benefits will typically go to the contingent beneficiary. According to LLQP principles, a contingent beneficiary is entitled to receive the remaining guaranteed payments when the primary beneficiary is no longer able to do so.
Option A is incorrect as Shan's widow is not mentioned as a beneficiary. Option B is incorrect as Shan's estate would not receive the benefits if a contingent beneficiary exists. Option D is incorrect as Diu's estate would only receive the benefits if no beneficiaries were named.
NEW QUESTION # 165
Vladimir is a new insurance agent with Family-Assure Inc. He and his supervisor Petros are reviewing the information collected during Vladimir's first meeting with Vanessa, a restaurant owner looking to add to her existing disability insurance (DI) coverage. Petros notices an overlap among sources, although the existing coverage appears adequate. Petros reminds Vladimir to explain to Vanessa how she would be impacted if she were to claim disability benefits.
What should Vladimir tell Vanessa?
- A. Overlapping among sources may result in longer waiting periods.
- B. Her DI benefits may be scaled back accordingly.
- C. It is more prudent to leave current coverage in place regardless of the overlap.
- D. The insurer may refuse payment due to the appearance of fraud.
Answer: B
Explanation:
Disability insurance benefits can be subject tointegrationoroffset provisions, especially if multiple sources of DI coverage exist. These provisions prevent the insured from receiving a total disability benefit amount that exceeds a certain percentage of pre-disability income. Vladimir should inform Vanessa that her benefits might be adjusted to avoid over-insurance and to align with her income levels. This aligns with the LLQP materials, which emphasize that overlapping coverage sources may lead to reductions in benefits from one source to maintain proportionality with earned income.
NEW QUESTION # 166
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