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LLQP Test Papers Exam Pass Once Try | Mock LLQP Exam
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IFSE Institute LLQP Exam Syllabus Topics:| Topic | Details | | Topic 1 | - Accident and Sickness Insurance: Aimed at insurance professionals offering individual and group health insurance, this section emphasizes the importance of financial protection in the case of serious illness or injury.
| | Topic 2 | - Ethics and Professional Practice: This part of the exam focuses on the legal and ethical responsibilities of life insurance professionals. It outlines the legal framework for life insurance in common law provinces and territories and stresses the importance of maintaining professionalism.
| | Topic 3 | - Segregated Funds and Annuities: Targeted at investment advisors and financial planners, this section evaluates their understanding of saving and investment strategies, which are essential for retirement and financial planning.
| | Topic 4 | - Life Insurance: This section assesses the expertise of insurance professionals, including financial advisors and life insurance agents, in understanding the financial impact of death. It explains how life insurance helps address those financial needs and introduces various life insurance products, along with their features and benefits.
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IFSE Institute Life License Qualification Program (LLQP) Sample Questions (Q189-Q194):NEW QUESTION # 189
Kirill purchases a $250,000 permanent life insurance policy on the life of his grandson, Dmitry. Kirill asks his wife Katya to pay the policy premiums and names his daughter, Natalya, as the subrogated policyholder. He does not name a beneficiary. Subsequently, Kirill dies without a will.
Who will become the new policyholder?
- A. Natalya.
- B. Dmitry.
- C. The executor of Kirill's estate.
- D. Katya.
Answer: A
Explanation:
In the case of life insurance where a subrogated policyholder is designated, that individual (in this case, Natalya) would assume ownership rights of the policy upon the original policyholder's death. Since Kirill named Natalya as the subrogated policyholder, she would become the new policyholder upon his death, regardless of the fact that Kirill did not have a will. This designation bypasses the estate, meaning the executor or other family members (like Katya) do not assume ownership. This outcome aligns with LLQP guidelines on succession planning and the assignment of life insurance ownership.
NEW QUESTION # 190
Alana, Meaghan, and Beatrice are equal shareholders of Advanced Tech Inc. They each own 100 shares of the company. Each share is currently worth $5,000. They recently signed a cross-purchase buy-sell agreement that is funded by life insurance. What will happen under this agreement if Alanadies today?
- A. Meaghan and Beatrice would each still own 100 shares of the company.
- B. Each share would now be worth $7,500.
- C. Alana's estate would receive a total of $500,000.
- D. There would now be 200 outstanding shares of the company.
Answer: C
Explanation:
In a cross-purchase buy-sell agreement funded by life insurance, each shareholder purchases a life insurance policy on the lives of the other shareholders. Upon the death of a shareholder, the surviving shareholders use the proceeds from the insurance to buy out the deceased shareholder'sshares at the agreed value. Since each share is valued at $5,000, Alana's 100 shares would be worth:
100 shares×5,000=500,000100 ext{ shares} imes 5,000 = 500,000100 shares×5,000=500,000 Thus, Meaghan and Beatrice would collectively purchase Alana's shares from her estate, providing her estate with a total of$500,000. Each surviving shareholder will then own an additional 50 shares, resulting in each now holding 150 shares of Advanced Tech Inc. This option aligns with the principles of cross-purchase agreements discussed in the LLQP.
NEW QUESTION # 191
Antonin and Magali are common-law partners in their thirties. They have two children together: a five-year- old daughter and a two-year-old son. Divorced from ex-wife Vanina, Antonin must pay her $1,500 a month in child support until their 10-year-old son reaches 25 years of age. Antonin is covered under a group life insurance policy equal to one year of his $75,000 annual salary. Magali does not currently earn any income, as she takes care of their two children full-time. Antonin is the sole owner of their residence, which will be fully paid off in 25 years.
What life insurance coverage do Antonin and Magali need in their situation?
- A. Mortgage payment coverage, term-to-age 65 coverage to replace Antonin's income and 15-year term coverage to support the child from his previous relationship.
- B. Permanent coverage to replace Antonin's income and 15-year term coverage to support the child from his previous relationship.
- C. Mortgage payment coverage, group insurance coverage equal to twice Antonin's annual salary and 15- year term coverage to support the child from his previous relationship.
- D. Permanent coverage to replace Antonin's income.
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
This is a multi-need situation. The LLQP recommends layering coverage:
* A 25-year term policy for mortgage protection.
* A term-to-65 policy for income replacement.
Reference: Insurance Study Guides Chinese.pdf, Needs Analysis - Family and Legal Obligations
NEW QUESTION # 192
Sebastian is a 44-year-old sales representative employed at Premier Aqua. He wants to take a year off to travel and relax. He has worked for the company for 25 years and accumulated $230,000 in a deferred profit sharing plan (DPSP). He would like to know if he can use some of the funds in his DPSP to fund his sabbatical.
- A. Yes, he can withdraw the funds if he gets permission from his employer.
- B. Yes, he can withdraw the funds if he wants to.
- C. No, the funds can only be transferred to a life income fund (LIF).
- D. No, the funds can only be transferred to a locked-in retirement account (LIRA).
Answer: D
Explanation:
As with most Deferred Profit Sharing Plan (DPSP) funds, Sebastian's accumulated balance is generally locked-in, which means it cannot be withdrawn in cash while still under the plan. Instead, he may transfer it to a Locked-In Retirement Account (LIRA) upon leaving his employment or retiring, ensuring the funds remain tax-deferred. LLQP guidelines state that DPSP funds are generally subject to locking-in provisions, which restrict withdrawals and are specifically aimed at providing retirement income.
Thus, contrary to options A and B, Sebastian cannot withdraw the DPSP funds for discretionary purposes, such as funding his sabbatical, because of these restrictions. Option C is incorrect, as transferring to a Life Income Fund (LIF) would only be appropriate once the funds are in a LIRA, typically when Sebastian is closer to retirement age and ready to begin income withdrawals.
NEW QUESTION # 193
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. Commission to specialist.
- C. Claims experience.
- D. Nature of the business.
Answer: C
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 # 194
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