LLQP IFSE-Institute Exam Questions and Free Practice Test

Question 37

- (Topic 2)
Ae-Cha starts working for the manufacturer, Premier Vibe Inc., a company that offers its employees group insurance with Sprout Life Insurance. Ae-Cha meets with Devon, the group insurance representative, and learns that her group plan includes $75,000 of life insurance coverage. Ae-Cha would like to know who designates the beneficiary on the life insurance.

A. Premier Vibe Inc.

B. Ae-Cha

C. Devon

D. Sprout Life

Correct Answer:B
In group life insurance plans, the employee (insured individual) is typically responsible for designating their own beneficiary. Although Premier Vibe Inc. sponsors the group plan, it is Ae-Cha, as the policyholder, who has the right to choose her beneficiary for the life insurance coverage provided under the plan. The employer or the insurer does not decide the beneficiary; this decision remains solely with the insured employee.

Question 38

- (Topic 5)
(Jerry, aged 63, is getting ready to retire. His pension statement shows contributions, investment choices, and performance data.
From among the following types of pension plans, which one was Jerry a member of?)

A. Group life income fund.

B. Defined benefit pension plan.

C. Defined contribution pension plan.

D. Deferred profit-sharing plan.

Correct Answer:C
The key feature of adefined contribution (DC) pension planis the focus on contributions and investment performance, rather than a guaranteed retirement benefit. Contribution amounts and investment options are fundamental characteristics of DC plans.
Exact Extract:
"In a Defined Contribution Pension Plan (DCPP), members?? benefits depend on the contributions made and the investment returns earned."
(Reference:Segfunds-E313-2020-12-7ED, Chapter 1.3.11 Group Plans)

Question 39

- (Topic 2)
Paola, an employee at Horizon Pharmaceuticals, was recently diagnosed with depression. She is unable to work and is receiving tax-free disability insurance benefits due to her condition. Paola is deeply indebted, and her creditors have been garnishing a portion of her pay for the last year. She is worried about her creditors also garnishing her disability benefit.
Can her disability benefits be seized by her creditors?

A. Yes, disability insurance benefits are seizable.

B. Yes, but creditors can only seize up to 50% of her benefit.

C. No, because the benefits are tax-free.

D. No, because she is disabled.

Correct Answer:D
In Quebec, disability insurance benefits are generally protected from seizure by creditors. This protection is designed to ensure that disabled individuals retain access to essential income for their well-being during their period of disability. Since Paola??s benefits are designated as disability income, they are exempt from garnishment.
This aligns with Quebec's laws on disability and insurance benefits, which prioritize financial protection for individuals facing health-related work absences. Thus, her benefits remain protected, regardless of her tax status or existing debts.

Question 40

- (Topic 3)
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.

Correct Answer:B
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.

Question 41

- (Topic 4)
Insurance of persons representative Flavie meets with Julius to analyze his needs. At the end of the meeting, Flavie makes another appointment to present the results of the analysis and the proposed strategies. She hands Julius her business card, which says: ??One of the company??s 10 best salespersons at your service!?? Flavie even adds that she is the office??s top salesperson and earns more than $250,000 a year in commissions and bonuses. What changes should Flavie make for her representation practices to comply with the obligations of an insurance of persons representative?

A. Give her business card at the beginning of the meeting

B. Remove the slogan from her business card

C. Give her business card only at the second meeting

D. Avoid disclosing the fact that she is paid by commission

Correct Answer:B
Comprehensive and Detailed In-Depth Explanation: The Chambre de la s??curit?? financi??re (CSF) Code of Ethics (Section 11) and Distribution Act (Section 18) prohibit representatives from using misleading or self-aggrandizing statements that could unduly influence clients. Flavie??s business card slogan, ??One of the company??s 10 best salespersons,?? and her verbal boast about earnings suggest superiority without substantiation, potentially pressuring Julius. Option B, removing the slogan, aligns with ethical standards to ensure representations focus on client needs, not personal accolades. Option A (timing of card) is irrelevant to compliance. Option C (second meeting) doesn??t address the content issue. Option D (commission disclosure) is unnecessary, as disclosing compensation structure is
permissible if relevant. The Ethics manual emphasizes professionalism and prohibits exaggerated claims.
References: CSF Code of Ethics, Section 11; Distribution Act, Section 18; Ethics and
Professional Practice (Civil Law) Manual, Section on Professional Conduct.
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Question 42

- (Topic 2)
Melissa owns a disability insurance policy from Clarity Life. She makes her premium payment on the second day of each month, but this month, she misses the payment deadline. A week passes before she realizes her oversight. She makes a frantic call to Jonathan, a Clarity Life customer service representative. Jonathan explains about notices of termination. Which of the following responses is CORRECT?

A. Melissa's policy was cancelled 24 hours after she missed her payment, and Clarity mailed her a notice of termination.

B. Melissa's policy would only be cancelled 30 days after the due date of her missed premium payment.

C. Melissa's policy has a grace period and would not be cancelled until 10 days after Clarity Life mails her a notice of termination.

D. Melissa's policy has a grace period and would not be cancelled until 15 days after Clarity Life mails her a notice of termination.

Correct Answer:B
Disability insurance policies generally include a grace period of at least 30 days from the premium due date, during which the policyholder can make a late payment without losing coverage. This grace period ensures that minor payment delays do not immediately result in policy cancellation. Therefore, Melissa??s policy would remain active and would only be subject to cancellation if she fails to pay within 30 days of the missed premium deadline. Notices of termination are issued only after the grace period has lapsed, giving the policyholder additional time to remedy any missed payments.

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