LLQP Practice Exam 150 Questions
with 100% Correct Answers | 2026
Latest Update
Which of the following activities will NOT result in the suspension of an agent's license?
*Making malicious and false statements about an insurer
*Replacing an insurance policy from one insurer to another based on misrepresentation
*Working for a foreign insurer
*Misrepresenting any fact about an insurance policy - Answer- *Working for a foreign
insurer
(Working for a foreign insurance company does not result in the revocation or
suspension of an agent's license.)
Under an Individual Disability policy in Florida, what is the minimum schedule of time in
which claims must be made to an insured?
*Annually
*Weekly
*Monthly
*Daily - Answer- *Monthly
(Claims on an individual disability policies must be paid out at monthly intervals, at
minimum.)
Which Unfair Trade Practice involves an agent telling a prospective client that a policy's
dividends are guaranteed?
*Coercion
*Fraud
*Misrepresentation
*Sliding - Answer- *Misrepresentation
(An agent who tells a client that dividends are guaranteed may be guilty of
misrepresentation.)
,An example of false advertising would be
*Paid testimonials from celebrity endorsements
*An insurer exaggerating its dividends in a magazine advertisement
*An agent spending more than $25 on marketing gifts for a client
*An insurer advertising in an insurance trade journal - Answer- *An insurer
exaggerating its dividends in a magazine advertisement
(An insurance company may be judged guilty of false advertising if it exaggerates its
dividends in a magazine advertisement.)
Which of the following is NOT considered rebating?
*Sharing commissions with an agent licensed in the same line of business
*Returning premium to a client as an inducement for purchasing a policy
*Giving something of value to an insured in exchange for their business
*Offering special dividends - Answer- *Sharing commissions with an agent licensed in
the same line of business
(Sharing commissions with other licensed agents is not considered rebating.)
Which Unfair Trade Practice involves an agent suggesting that an insurance policy is
like a share of stock?
*Twisting
*Intimidation
*Misrepresentation
*Sliding - Answer- *Misrepresentation
(If an agent tells an applicant that an insurance policy is like a share of stock, the agent
may be guilty of misrepresentation.)
An example of rebating would be
**a mutual insurance company paying dividends to its policyowners
**reducing the premiums across the board for a specific risk class
**offering a client something of value not stated in the contract in exchange for their
business
**using intimidation in order to restrain or monopolize the business of insurance. -
Answer- **offering a client something of value not stated in the contract in exchange for
their business
(Rebating can be defined as offering a prospect something of value that is not specified
in a contract in order to induce the purchase of that contract.)
,S takes out a health insurance policy which contains a provision that states that the
agent does not have the authority to change the policy or waive any of its provisions.
Which health policy provision is this?
*Legal Actions
*Insurance with other insurers
*Entire Contract
*Reinstatement - Answer- *Entire Contract
(The Entire Contract provision states that the agent does NOT have the authority to
change the policy or waive any of its provisions.)
The sections of an insurance contract which limit coverage are called
*waivers
*riders
*exclusions
*limitations - Answer- *exclusions
(An exclusion limits coverage in an insurance contract.)
The Coordination of Benefits provision
*allows an insured covered by two health plans to make a profit on a covered loss
*prevents an insured covered by two health plans from making a profit on a covered
loss
*allows an insurer to defer paying a claim for a work-related injury until Workers'
Compensation Benefits have expired
*prevents an insured to change insurers during a claim for a covered loss - Answer-
*prevents an insured covered by two health plans from making a profit on a covered
loss
(The Coordination of Benefits prevents an insured covered by two health plans from
making a profit on a covered loss.)
An accident policy will most likely pay a benefit for a(n)
*self-inflicted injury
*critical illness
*on-the-job accident
*off-the-job accident - Answer- *off-the-job accident
(An accident policy would most likely pay a benefit for an off-the-job accident.)
What type of rider would be added to an Accident and Health policy if the policyowner
wants to ensure the policy will continue if he/she ever becomes totally disabled?
, *Accidental Death and Dismemberment rider
*Disability Income rider
*Guaranteed Insurability rider
*Waiver of Premium rider - Answer- *Waiver of Premium rider
(If a policyowner covered under an accident and health policy wanted to ensure the
policy will continue if they ever become totally disabled, they would want to add a waiver
of premium rider.)
What kind of life insurance beneficiary requires his/her consent when a change of
beneficiary is made?
*Irrevocable beneficiary
*Tertiary beneficiary
*Primary beneficiary
*Revocable beneficiary - Answer- *Irrevocable beneficiary
(An irrevocable designation may not be changed without the written consent of the
beneficiary.)
When can a policyowner change a revocable beneficiary?
*Anytime
*After the consent of the current beneficiary
*Never
*Only if primary beneficiary dies - Answer- *Anytime
(With a revocable beneficiary designation, the policyowner may change the beneficiary
at any time without notifying or getting permission from the beneficiary.)
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his
son as beneficiary. M has the right to change the beneficiary designation at anytime.
What type of beneficiary is his son?
*Tertiary
*Irrevocable
*Revocable
*Contingent - Answer- *Revocable
(With a revocable beneficiary designation, the policyowner may change the beneficiary
at any time without notifying or getting permission from the beneficiary.)
How would a contingent beneficiary receive the policy proceeds in an Accidental Death
and Dismemberment (AD&D) policy?
with 100% Correct Answers | 2026
Latest Update
Which of the following activities will NOT result in the suspension of an agent's license?
*Making malicious and false statements about an insurer
*Replacing an insurance policy from one insurer to another based on misrepresentation
*Working for a foreign insurer
*Misrepresenting any fact about an insurance policy - Answer- *Working for a foreign
insurer
(Working for a foreign insurance company does not result in the revocation or
suspension of an agent's license.)
Under an Individual Disability policy in Florida, what is the minimum schedule of time in
which claims must be made to an insured?
*Annually
*Weekly
*Monthly
*Daily - Answer- *Monthly
(Claims on an individual disability policies must be paid out at monthly intervals, at
minimum.)
Which Unfair Trade Practice involves an agent telling a prospective client that a policy's
dividends are guaranteed?
*Coercion
*Fraud
*Misrepresentation
*Sliding - Answer- *Misrepresentation
(An agent who tells a client that dividends are guaranteed may be guilty of
misrepresentation.)
,An example of false advertising would be
*Paid testimonials from celebrity endorsements
*An insurer exaggerating its dividends in a magazine advertisement
*An agent spending more than $25 on marketing gifts for a client
*An insurer advertising in an insurance trade journal - Answer- *An insurer
exaggerating its dividends in a magazine advertisement
(An insurance company may be judged guilty of false advertising if it exaggerates its
dividends in a magazine advertisement.)
Which of the following is NOT considered rebating?
*Sharing commissions with an agent licensed in the same line of business
*Returning premium to a client as an inducement for purchasing a policy
*Giving something of value to an insured in exchange for their business
*Offering special dividends - Answer- *Sharing commissions with an agent licensed in
the same line of business
(Sharing commissions with other licensed agents is not considered rebating.)
Which Unfair Trade Practice involves an agent suggesting that an insurance policy is
like a share of stock?
*Twisting
*Intimidation
*Misrepresentation
*Sliding - Answer- *Misrepresentation
(If an agent tells an applicant that an insurance policy is like a share of stock, the agent
may be guilty of misrepresentation.)
An example of rebating would be
**a mutual insurance company paying dividends to its policyowners
**reducing the premiums across the board for a specific risk class
**offering a client something of value not stated in the contract in exchange for their
business
**using intimidation in order to restrain or monopolize the business of insurance. -
Answer- **offering a client something of value not stated in the contract in exchange for
their business
(Rebating can be defined as offering a prospect something of value that is not specified
in a contract in order to induce the purchase of that contract.)
,S takes out a health insurance policy which contains a provision that states that the
agent does not have the authority to change the policy or waive any of its provisions.
Which health policy provision is this?
*Legal Actions
*Insurance with other insurers
*Entire Contract
*Reinstatement - Answer- *Entire Contract
(The Entire Contract provision states that the agent does NOT have the authority to
change the policy or waive any of its provisions.)
The sections of an insurance contract which limit coverage are called
*waivers
*riders
*exclusions
*limitations - Answer- *exclusions
(An exclusion limits coverage in an insurance contract.)
The Coordination of Benefits provision
*allows an insured covered by two health plans to make a profit on a covered loss
*prevents an insured covered by two health plans from making a profit on a covered
loss
*allows an insurer to defer paying a claim for a work-related injury until Workers'
Compensation Benefits have expired
*prevents an insured to change insurers during a claim for a covered loss - Answer-
*prevents an insured covered by two health plans from making a profit on a covered
loss
(The Coordination of Benefits prevents an insured covered by two health plans from
making a profit on a covered loss.)
An accident policy will most likely pay a benefit for a(n)
*self-inflicted injury
*critical illness
*on-the-job accident
*off-the-job accident - Answer- *off-the-job accident
(An accident policy would most likely pay a benefit for an off-the-job accident.)
What type of rider would be added to an Accident and Health policy if the policyowner
wants to ensure the policy will continue if he/she ever becomes totally disabled?
, *Accidental Death and Dismemberment rider
*Disability Income rider
*Guaranteed Insurability rider
*Waiver of Premium rider - Answer- *Waiver of Premium rider
(If a policyowner covered under an accident and health policy wanted to ensure the
policy will continue if they ever become totally disabled, they would want to add a waiver
of premium rider.)
What kind of life insurance beneficiary requires his/her consent when a change of
beneficiary is made?
*Irrevocable beneficiary
*Tertiary beneficiary
*Primary beneficiary
*Revocable beneficiary - Answer- *Irrevocable beneficiary
(An irrevocable designation may not be changed without the written consent of the
beneficiary.)
When can a policyowner change a revocable beneficiary?
*Anytime
*After the consent of the current beneficiary
*Never
*Only if primary beneficiary dies - Answer- *Anytime
(With a revocable beneficiary designation, the policyowner may change the beneficiary
at any time without notifying or getting permission from the beneficiary.)
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his
son as beneficiary. M has the right to change the beneficiary designation at anytime.
What type of beneficiary is his son?
*Tertiary
*Irrevocable
*Revocable
*Contingent - Answer- *Revocable
(With a revocable beneficiary designation, the policyowner may change the beneficiary
at any time without notifying or getting permission from the beneficiary.)
How would a contingent beneficiary receive the policy proceeds in an Accidental Death
and Dismemberment (AD&D) policy?
