llqp final exam ques..pdf

8/19/2019 LLQP FINAL EXAM QUES..pdf

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MOCK EXAM

Which of the following is NOT AN APPROPRIATE course of action?

Question Sally Jensen had asked you to meet with her because she has heard that she

should be setting up RRSP. While Meeting with her, you explain that RRSP has the

following advantages:

Which of the following statement(s) is/are MOST CORRECT?


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The amount her employer insurance company would reimburse her would be:

Question Paula Simpson has been member of the Albright Manufacturing firm group-

benefit plan for years. She is non-smoker who is in excellent health. Her employment

with this firm will be terminated in days. Which of the following statement(s) is/are

TRUE?


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Which of the following answers correctly reflects how the insurers would coordinate their

payments for Ali dental claim?

When they each reach age what would you recommend in order for them to maintain

their objectives?


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Which of the following statement/s are TRUE?

What will the monthly withdrawal be to pay for both policies?

What is the amount guaranteed for maturity under the proportionate reduction method?


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How much would she receive monthly from the insurer?

As Craig agent you have fiduciary responsibility to:


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As you are completing the disability insurance application, you notice that there are no

questions that ask about rock climbing in the hazardous activities area of the application.

How should you proceed with this application?

While completing the financial part of the application for disability insurance, you ask

Craig what his income was for the last years. He explains that he draws year

and that his wife earns per year. He has decided that he wants to purchase

mth of individual disability insurance. You ask Craig to provide you copies of his T1General to submit with the disability application. Craig explains that his accountant has

found way to have Craig pay no income tax for the last years.

How should you proceed?


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Which of the following is the LEAST APPROPRIATE product to fill their needs?

In addition, George and Sarah are each contributing to their own RRSP plan. Both are

members of an employee benefit package which provides for one times earnings for life

insurance, long term disability benefits at the maximum available with additional

underwriting, major medical and dental benefits. Sarah basic long term disability amount

is per month. George basic long term disability amount is per month. They

are also contributing to Registered Education Savings Plans for their children education.

Assuming George and Sarah are concerned about the current levels of disability insurance,recommended plan for disability protection would be:


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Question Differences between participating whole life contract and non-

participating whole life contract include:

Andrea has decided that she needs access to to return to school. She has an option

of either trying to redeem monies from her deferred annuity contract or obtaining bank

loan for the funds.

Which of the following is the BEST option for Andrea to get these funds?


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Which of the following statement/s is FALSE of key man insurance?

Which of the following would be the BEST advice for this couple to prepare for their

retirement and reduce taxes?


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Gail and David have decided that they should retire. Gail is now and David is David

cannot start receiving payments from his defined contribution pension plan without

incurring significant penalties, which has normal retirement age of Gail has

in her Registered Retirement Savings Plan. David has in his RegisteredRetirement Savings Plan. They have determined that they require year before tax

to live.

Which of the following options would be the MOST tax efficient way for them to draw from

their retirement plans?

You explain to the Tooles that all of the following statements about Registered

Retirement Income Fund are TRUE EXPECT:


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Which of the following statements is TRUE of the day right of rescission?

To ease Jeremy and Sarah mind you should suggest the following:


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Jeremy and Sarah daughter Angels is She is covered under Jeremy company drug

plan for another year. Angela is in treatment and the doctors say she will be able to live

independently and have job. Angela is not expected to earn in excess of per year,

in today dollars. She will need to find an employer that is flexible and understand Angela

medical requirements. Jeremy and Sarah would like to provide with an income

supplement of per year. They are selling the cottage to purchase small condo for

Angela. If Jeremy dies first Sarah will provide for Angela and if Sarah dies first Jeremy

will provide for Angela. At the death of both Jeremy and Sarah, they have requested their

executor sell the matrimonial home, and liquidate all other assets to provide lump sum of

cash available to provide Angela with an income. Jeremy and Sarah have assumed tax

rate of in their calculations. They have discounted any group life insurance, as Jeremy

will be retiring in years. What further steps would you suggest Jeremy and Sarah take to

ensure for Angela future security?

Which of the following options would be the BEST recommendation for Milton pension?


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What is the MOST tax effective way to draw her income from her Registered Retirement

Income Fund?

What industry compensation fund would address Ann losses?


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Irene twins were born prematurely and had some minor health problems at their birth.

The doctors confirm chance all health difficulties will disappear by the age of but

until then regular quarterly physicals are required and speech pathologist may be

required. Irene must pay for her children childcare requirements while she is running the

clinic. Her annual earnings are about after her business expenses. The cost for two

young children to attend good childcare program is almost per month. By the time

Irene pays the children expenses, her mortgage payment of per month, groceries,

diapers, and other necessities, she has little disposable income. She is concerned about

saving for the future and is afraid she will not be able to contribute to her Registered

Retirement Savings Plans. Of the options listed below, which will BEST MEET her current

insurance needs considering hew limited budget?

Which of the following is the MOST APPROPRIATE insurance product for Bonnie to

purchase?


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The temporary insurance agreement will be in force at what point?

Question Which of the following statement/s is/are TRUE?

Question Pension Adjustment has the following effect:

Question If an Individual Variable Insurance Contract is purchased with deferred

sales charge, which of the following statements is TRUE:


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The agent could be charged in the following manner:

The tax bill from the disposition of Mom and Dad shares is due:


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The MOST cost effective way for the tax bill to be paid is:

Question Alice Smithson has suffered from back problems since her childhood. When

she applies for the necessary individual disability insurance she can expect:

Which of the following is NOT an advantages to term insurance rider.


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Abdul had basic dental services performed for and had two crowns for total of

Which of the following answers correctly outlines how the insurers would coordinate their

payments for Abdul dental claim?

Jasmine has just taken their year old daughter to the dentist. She has bill for

basic dental and bill for crown that her daughter requires.

Which of the following outlines how this claim will be handled by the insurance

company/companies?


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Mitchell has decided that he will take the recommendations of the agent and set up

spousal Registered Retirement Savings Plan. Under Mitchell defined contribution pension

plan, he contributes of his annual income. His employer matches the contributions that

Mitchell makes.

How much can Mitchell contribute to spousal Registered Retirement Savings Plan

annually?

Which of the following types of insurance should Robert consider purchasing?


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The total book value that the bank can receive for these liabilities from this policy contract

is:

The value that David would receive from this policy contract after probate fees would be:


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If Gail had decided to cash in her Individual Variable Insurance Contract to provide

capital for her business one year ago on her rd birthday, when the market value was

how much would she have received when she surrendered the policy contract?

Which of the following strategies should you suggest?


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Which of the following would be reasons for the agent to make this recommendation?

When does Cheryl need to receive Summary Information Folder for new IVIC?


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The MOST effective way to provide for retirement income would be to:

Without taking into consideration any tax implication and assuming return on

investment, how much money would need to be invested to provide for the annual fees for

Jeff long-term care facility without encroaching on the capital?


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Gail and Michael want to leave donation to charity that is raising money for research into

Jeff medical condition. They don want this donation to have any impact on Jeff ability

to live in the long-term care facility that they have chosen for him. They have discussed

purchasing insurance to fund Jeff care, any outstanding tax liabilities that would arise

when they both die and the donation for their chosen charity. What would be the taxable

capital gain on their home and their cottage if they both died today assuming tax

bracket?

Based on your recommendation, Gail and Michael have decided to address their desired

financial goals on death by purchasing life insurance. Of the following, what would be the

BEST product to meet their needs?


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John has decided that there are issues that can be effectively addressed through the

purchase of some insurance.

The first issue that john wants to address is any capital gains that would be triggered on his

death. The BEST policy to address these concerns would be:


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John knows that he does not want to work beyond age He wants to be free to do some of

the things that he put off while building this business. He has successfully invested over the

years and therefore is confident that he and his wife will be able to enjoy retirement. He is

still concerned about the succession of the business to his sons. If he should predecease his

wife, she will become the owner of of the shares of the corporation. Shehas never been

involved in the business and does not possess the skills or desire to run the business. John

would like his wife to have the benefit of the value of the shares should he predecease her.

The BEST way to accomplish this would be to:

It is years later and Matthew who is and mark who is each own of the shares

of Albright Manufacturing. Both men are key to the successful continuation of this business.

They decide to purchase key person life insurance to purchase the outstanding shares if one

of them should die.

Which of the following products would BEST provide for the long-term funding for the

purchase of the outstanding shares when either Mark or Matthew dies?


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What would you expect the insurance company to do with this claim?

Which of the following statements is NOT ACCURATE?

You explain to him that the insurance company wants information about his annual income


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to:

You should suggest to the client that the following fiduciary duty is being breached:

Question Which of the following is NOT an advantage of whole life insurance?

Question The following are differences between Level Cost of Insurance and Yearly

Renewable Term mortality costing in universal life insurance contract:


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If she becomes disabled, how much can she expect to receive in benefits?

Knowing how conservative Kripa is, which of the following types of insurance policy would

you recommend?

Question Whose BEST interest does the agent look out for first?


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Which of the following fiduciary duties is the agent breaching?

Question Common sense

Question Angela, age and Victor, aged are married. Angela has in

Registered Retirement Income Fund. Victor is the designated beneficiary. If Angela were to

die later this year, what would happen to the Registered Retirement Income Fund?


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As Eva life insurance agent, which of the following products would you recommend she

should consider adding to her portfolio?

Based on the information above, which of the following would NOT BE AN

APPROPRIATE investment recommendation for this couple:


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It is years later, and Tom and Wendy have bought their condominium. Tom is employed

with large firm, earnings per year who offers comprehensive benefit package

which includes defined contribution pension plan. Tom defined contribution pension

plan only allows for additional registered contribution room of per year. Wendy

started hew own firm months ago and is earning per year. They need to

reconsider their investment options. They still believe that they high risk tolerance and

want some recommendations on what they should do with their investment portfolio. They

now have month that can be used for investment purposes.

Which of the following choices would be the LEAST APPROPRIATE recommendation for

future investments:

What should be the first recommendation that you make?


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From the information provided above, which of the following BEST analyzes Andrew

disability insurance needs?

Yves incurs semi-private hospital bill for in excess of the ward coverage provided

by the provincial medi-care plan.

How much will Yves insurer be required to pay?


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Giselle has an eligible dental claim in the amount of which she submits to her

carrier. Giselle plan pays per the contract and the remainder is remitted to Yves insurer?

How much will Yves insurer have to pay?

Which of the following strategies would be the BEST for the Guadets?


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What is the maximum Michael can contribute annually to his Registered Retirement

Savings Plan?

The underwriter would:


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Using the life expectancy of years for his daughter, increase per year in fees for

long-term care, providing for final expenses, and without taking into consideration

any final taxes due on his death or interest that could be earned, how much money will be

left in Donald estate to leave to his church?

Reginald returns to work and, at the age of quits the construction business and buys

donut franchise. He is the sole proprietor. He decides to keep his disability policy. The

business turns out to be very profitable, and Reginald net income increase substantially to

per year. At the age of Reginald decides to purchase more disability insurance.

His current individual disability policy has short elimination period, includes only basic

coverage and has no future increase options.

The BEST advice an agent could give to Reginald would be to:

Reginald returns to work and, at the age of quits the construction business and buys

donut franchise. He is the sole proprietor. He decides to keep his disability policy. The


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business turns out to be very profitable, and Reginald net income increase substantially to

per year. At the age of Reginald decides to purchase more disability insurance.

His current individual disability policy has short elimination period, includes only basic

coverage and has no future increase options.

When structuring his coverage, the agent should advise Reginald to:

Which of the following should you contact first?

Option Underwriting Information

Option Declarations and Agreements

Option Agent Comments

Option Insured References

life insurance application consists of the following sections:


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You advise Claude that the certificate holder in the contract is:

Question Which of the following statements is NOT TRUE of whole life insurance:

If Curtis had decided to cash in his IVIC to provide capital one year ago on his st

birthday, when the market value was how much would he have received when he

surrendered the policy contract?


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Unfortunately, Curtis died yesterday at age The market value of his contract at his

death Curtis had outstanding debts with the bank in the amount of

The value that Ann would receive from this policy contract after probate fees would be?

Which of the following answers correctly reflects how the insurers would coordinate their

payments to the Meyers?

Question Which of the following limitations or exclusions appear under both employer-

agreement group Accident and Sickness plans and under individual Non Cancellable

Policies?


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Question upon receipt of completed life insurance application, the underwriting

department first checks:

Question in comparing Individual Variable Insurance Contracts and mutual funds,

which of the following statement is NOT ACCURATE?

Question Why are Administrative Services Only contracts usually NOT recommended

for smaller companies?

Question Which of the following is NOT typical component of an extended health

plan?


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Question Life insurance premiums are deductible from personal income tax if:

The MOST APPROPRIATE structure would be to:

When establishing disability benefit levels, the executive disability plan should take into

account:


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During your meeting with her, the first and MOST important thing you need to do is to

explain:

A)

B)

C)

D)

The Temporary Insurance agreement is:

A)

B)C)

D)

When the claim forms are submitted to the insurance company, which of the provisions

generated included in an individual disability insurance policy will impact the payment of

his claim?

A)


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B)

C)

D)

Which of the following investment vehicles is/are sold only by insurance

companies?

A)

B)

C)

D)

Sangeeta decided to purchase an individual critical illness policy. days after the policy

was issued, she was diagnosed with life threatening cancer. Which of the following

statement(s) is MOST CORRECT?

A)

B)

C)

D)

The agent should recommend which the following:


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A)

B)

C)

D)

This of the following statements/s indicates why this policy is NOT the BEST policy for

their needs

A)

B)

C)

D)

Which of the following statements is/are TRUE in regards to his income options on

retirement?

A)B)

C)

D)


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Which of the following services that Wendy needs would NOT be covered by her basic

dental plan?

A)

B)

C)

D)

Which of the following statement(s) is/are FALSE?

A)

B)

C)

D)

Which of the following statements is/are accurate?

A)

B)

C)

D)

Which of the following strategies will BEST help Norella address her concerns?


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What additional insurance needs would you recommend that Joe consider?

Question Pension Adjustment is calculated on the following basis:


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Which of the following products would be the LEAST APPROPRIATE product to cover

this need?

Based on the information shown above, which of the following would BEST cover their

insurance needs?

Roger has trust fund that generates per month of unearned income.

What impact will this have on roger eligibility when purchasing an individual disabilitypolicy?


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Which of the following combinations of universal life insurance death benefits and

mortality rate deduction options would be MOST suitable in Anwar circumstances?

Which of the following could be the cause of the decrease in cash accumulation in the policy?


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Which of the following products would enable him to keep this commitment, should he die

prematurely?

Question Which of the following statement(s) is/are FALSE about types of funds?

At this point in time, which of the following standard policy limitations and provisions are

impacted by the situation outlined above?


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Question Under which of the following situations would an insured be considered

disabled under the presumptive disability clause?

Question Which of the following statements is TRUE of Guaranteed Investment

Certificate?

Question When meeting with you client, Nathan Adams, he asks you to provide him

with some information about his group life insurance. You advise him that the policyholder in the contract is:


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What would be the LEAST effective way for them to continue their savings over the next

year to achieve their goal of buying home?

Jason is getting married and needs access to for down payment for new home.How can Jason get access to these funds from his deferred annuity contract?

Which of the following additional benefits should Amber consider adding to her non-

cancellable disability policy?


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Which of the following is/are correct?

Use the following Options] to answer this question:

Option The employer directly pays the premiums for the individual policy and

deducts the premiums as business expense.

Option The employer increases James income in an amount equal to the annual

premium and James pays the annual premium himself

Option The employer increases James income in an amount equal to the annualpremium plus to cover any taxes and James pays the premium himself

Option The employer directly pays the premium for the individual policy and any

disability benefits will be paid to the employer who will then pass them on to James

Which of the methods would allow James to receive disability benefits on tax exempt

basis?


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Question Under typical accidental death and dismemberment benefit provided by

an employee benefit plan, what is the maximum period of time that death must occur

after an accident for the benefit to be paid to the designated beneficiary?

Question Which of the following statements related to Non-Refund Accounting is

TRUE?

Question Which of the following funds is NOT generic fund type:

Question Which of the following statements is TRUE?


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What will Gwen beneficiary receive as the proceeds from the whole life policy?

é

é

Which of the following assets will be subject to tax at his death?

Question Which of the following statements is TRUE?

Question Roger Gomez owns universal life insurance contract. When he purchased


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his policy years ago, he chose an adjustable Yearly Renewable Term mortality costing

and his investment option was to be invest in the NASDAQ and Japanese index funds.

He was paying close to minimum premium on an annual basis. His annual deposit was paid

six months ago. Since then, large loss in the two indexes listed above would have which of

the following results:

Question In comparing Individual Variable Insurance Contracts and mutual funds,

which of the following statements is TRUE?

Question Which of the following statements is/are TRUE aboutgroup insurance?

What will happen when Susan makes claim to her insurance company?


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A)

B)

C)

D)

THE END

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