IFSE Institute LLQP Exam Questions Instant Access

Question 1

Ziad, aged 34, was an elementary school teacher for several years. However, staffing cutbacks and his love of food have prompted him to go into business. He just purchased a pizza franchise (taking a $150,000 personal loan to finance the venture) and entered into a five-year lease for his business. Ziad owns a 20-year term life insurance policy with a face amount of $250,000. He is also covered for some benefits under his wife's group insurance plan, but knows he needs additional coverage. What type of accident and sickness coverage should Ziad purchase first?

ACritical illness insurance.

BExtended health insurance.

CCreditor disability insurance.

DDisability income protection insurance.

Answer : C

Question 2

Miguel applied for a disability insurance policy nearly three months ago. He recently received notice from his agent that his application was approved, with an exclusion applicable to his lower back due to a prior injury. The agent brought the exclusion amendment with the policy at the delivery appointment. Miguel signed and accepted it. He gave the agent a copy of a void cheque to set up direct billing for the premiums, but asked that they wait three days to draw the first premium, to coincide with his payday. The insurer drew the premium three days later, as requested. When did Miguel's policy take effect?

AThe policy has been in effect ever since Miguel's initial application.

BThe policy took effect when Miguel received notice of approval.

CThe policy took effect when Miguel signed the policy and the amendment.

DThe policy took effect when the insurer was able to draw the first premium.

Answer : C

Question 3

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?

AThe insurance company will automatically refuse the application.

BThe insurance company will accept the application with an exclusion for alcohol consumption.

CJose should refuse the request.

DXavier will have to fill out a questionnaire detailing his alcohol consumption.

Answer : D

Question 4

Life insurance agent Alexandra completes a life insurance application with her client, Joshu

a. After three months in underwriting, the application is accepted and the policy is issued on a standard rate. Alexandra goes to deliver the policy. When she gets to Joshua's, he tells her how he just got out of the hospital with a serious blood clot.

What should Alexandra do?

ASimply deliver the policy to Joshua, as his application has already been accepted.

BDeliver the policy to Joshua, but notify the underwriter of the new medical information.

CTell Joshua that, because of the new medical information, she cannot deliver the policy and must put an end to the entire application process.

DTell Joshua that, because of the new medical information, she cannot deliver the policy and must notify the underwriter for further consideration.

Answer : D

Question 5

Three years ago, Douglas purchased a whole life insurance policy with numerous supplementary benefits and riders. Today, he meets with his doctor who informs him that he has late-stage colon cancer and has only a few months to live. Even with surgery, his chances of survival are low. Douglas calls his insurance agent, Penny, to ask her what he should do to obtain a benefit immediately.

ADread disease benefit.

BTerminal illness benefit.

CPolicy loan.

DPolicy withdrawal.

Answer : B

Question 6

(Philip is applying for a segregated fund contract and must choose a sales charge. He does not foresee needing withdrawals and wants minimal management expenses and no initial reductions or penalties.

Which form of sales charge would best suit Philip?)

AA deferred sales charge

BA no-load fund

CA front-end sales charge

DA negotiated sales charge

Answer : C

Question 7

(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 LIR

AHe 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?)

ACPP/QPP, the GIC and the RRSP.

BThe LIRA, the GIC and the RRSP.

CThe LIRA, the GIS and the RRSP.

DOAS, the GIC and the RRSP.

Answer : B

IFSE Institute Life License Qualification Program (LLQP) LLQP Exam Questions