LLQP ETHICS EXAM QUESTIONS WITH
100% CORRECT ANSWERS
Which of the following statements regarding product-specific policy provisions is
correct?
1 - The benefit that pays out on the death of the insured is referred to as the cash
surrender value.
2 - A living benefit entitles the policyholder to receive an advance payment of a portion
of the death benefit if the insured is diagnosed with a terminal illness with a shortened
life expectancy.
3 - Most life insurance policies will restrict payment of a benefit if a person commits
suicide at any point during the contract period.
4 - A policy loan takes place when a third party lender takes the policy as security in
order to loan the policyholder money. - Answer- 2 - A living benefit entitles the
policyholder to receive an advance payment of a portion of the death benefit if the
insured is diagnosed with a terminal illness with a shortened life expectancy.
Granville recently passed away from a heart attack and his wife Greta was surprised to
find out that the claim on his insurance policy was denied. When Greta spoke to a
representative to find out more she was told that the manner in which Granville passed
away wasn't covered by this specific policy. What is the most likely reason the claim
was denied?
1 - There was an innocent misrepresentation on the policy application.
2 - There was a reduction provision on the policy.
3 - It was an Accidental Death and Dismemberment policy.
4 - There was an exclusion for a pre-existing condition on the policy. - Answer- 3 - It
was an Accidental Death and Dismemberment policy.
Yolanda wants to know the components of the principle of "acting in good faith." Which
of the following is a component of this principle?
1 - Duty of care
2 - Avoiding conflict-of-interest occupations
3 - Priority of client's interest
4 - Product suitability - Answer- 1 - Duty of care
Quinn works for ABC Insurance. At meetings with clients he only talks about the
disadvantages and negative aspects of TrueLife Insurance, a strong competitor to ABC
Insurance.Is Quinn violating any code of ethics?
1 - Yes. Quinn is discrediting an insurer.
, 2 - No. The Code of Ethics states that only another representative should not be
discredited.
3 - No. Quinn is discussing the negative aspects of a competitor.
4 - Yes. Quinn is coercing his clients. - Answer- 1 - Yes. Quinn is discrediting an insurer.
Valerie is a new insurance agent. She is confused about the regulatory authorities in the
insurance industry and asks her supervisor to clarify a few points for her.
Who licenses and regulates agents and insurance agencies?
1 - Canadian Council of Insurance Regulators (CCIR)
2 - Office of the Superintendent of Financial Institutions (OFSI)
3 - Canadian Insurance Services Regulatory Organizations (CISRO)
4 - Each separate provincial and territorial insurance regulator - Answer- 4 - Each
separate provincial and territorial insurance regulator
In regard to accident and sickness insurance, which of the following is correct?
1 - Accident and sickness insurance is generally only available as part of group
coverage.
2 - Accident and sickness insurance may include coverage for medical fees and drugs.
3 - Accident and sickness insurance generally covers for sickness and disability, not
death.
4 - Accident and sickness insurance provides coverage specifically for work related
conditions. - Answer- 2 - Accident and sickness insurance may include coverage for
medical fees and drugs.
Diana is a new life insurance agent and is studying the requirements for ascertaining
the clientâs identity under the Proceeds of Crime (Money Laundering) and Terrorist
Financing Actand Financial Transactions and Reports Analysis Centre of Canada
(FINTRAC) guideline 6A.
For which of the following products must agents ascertain the clientâs identity?
1. Immediate annuity and deferred annuity
2. Exempt life insurance policy and TFSA
3. Deferred annuity and exempt life insurance policy
4. Deferred annuity and TFSA - Answer- 1. Immediate annuity and deferred annuity
Elaine and Mellie have been common law partners for the last 15 years. Elaine moved
into Mellie's home 10 years ago and has been contributing to the mortgage and other
household bills. She and Mellie have two children. Elaine spent four years at home wiht
the kids and went back to work last year. Mellie has continued to work throughout and is
their main contributor to their expenses. Elaine and Mellie separate. As common-law
partners, to which of the following does Elaine have the right?
1. Elaine has the right to property division because she has been contributing to the
mortgage and household bills
2. Elaine can seek spousal support because Melli's income supports her
3. Elaine has all the same rights as someone in a married couple
100% CORRECT ANSWERS
Which of the following statements regarding product-specific policy provisions is
correct?
1 - The benefit that pays out on the death of the insured is referred to as the cash
surrender value.
2 - A living benefit entitles the policyholder to receive an advance payment of a portion
of the death benefit if the insured is diagnosed with a terminal illness with a shortened
life expectancy.
3 - Most life insurance policies will restrict payment of a benefit if a person commits
suicide at any point during the contract period.
4 - A policy loan takes place when a third party lender takes the policy as security in
order to loan the policyholder money. - Answer- 2 - A living benefit entitles the
policyholder to receive an advance payment of a portion of the death benefit if the
insured is diagnosed with a terminal illness with a shortened life expectancy.
Granville recently passed away from a heart attack and his wife Greta was surprised to
find out that the claim on his insurance policy was denied. When Greta spoke to a
representative to find out more she was told that the manner in which Granville passed
away wasn't covered by this specific policy. What is the most likely reason the claim
was denied?
1 - There was an innocent misrepresentation on the policy application.
2 - There was a reduction provision on the policy.
3 - It was an Accidental Death and Dismemberment policy.
4 - There was an exclusion for a pre-existing condition on the policy. - Answer- 3 - It
was an Accidental Death and Dismemberment policy.
Yolanda wants to know the components of the principle of "acting in good faith." Which
of the following is a component of this principle?
1 - Duty of care
2 - Avoiding conflict-of-interest occupations
3 - Priority of client's interest
4 - Product suitability - Answer- 1 - Duty of care
Quinn works for ABC Insurance. At meetings with clients he only talks about the
disadvantages and negative aspects of TrueLife Insurance, a strong competitor to ABC
Insurance.Is Quinn violating any code of ethics?
1 - Yes. Quinn is discrediting an insurer.
, 2 - No. The Code of Ethics states that only another representative should not be
discredited.
3 - No. Quinn is discussing the negative aspects of a competitor.
4 - Yes. Quinn is coercing his clients. - Answer- 1 - Yes. Quinn is discrediting an insurer.
Valerie is a new insurance agent. She is confused about the regulatory authorities in the
insurance industry and asks her supervisor to clarify a few points for her.
Who licenses and regulates agents and insurance agencies?
1 - Canadian Council of Insurance Regulators (CCIR)
2 - Office of the Superintendent of Financial Institutions (OFSI)
3 - Canadian Insurance Services Regulatory Organizations (CISRO)
4 - Each separate provincial and territorial insurance regulator - Answer- 4 - Each
separate provincial and territorial insurance regulator
In regard to accident and sickness insurance, which of the following is correct?
1 - Accident and sickness insurance is generally only available as part of group
coverage.
2 - Accident and sickness insurance may include coverage for medical fees and drugs.
3 - Accident and sickness insurance generally covers for sickness and disability, not
death.
4 - Accident and sickness insurance provides coverage specifically for work related
conditions. - Answer- 2 - Accident and sickness insurance may include coverage for
medical fees and drugs.
Diana is a new life insurance agent and is studying the requirements for ascertaining
the clientâs identity under the Proceeds of Crime (Money Laundering) and Terrorist
Financing Actand Financial Transactions and Reports Analysis Centre of Canada
(FINTRAC) guideline 6A.
For which of the following products must agents ascertain the clientâs identity?
1. Immediate annuity and deferred annuity
2. Exempt life insurance policy and TFSA
3. Deferred annuity and exempt life insurance policy
4. Deferred annuity and TFSA - Answer- 1. Immediate annuity and deferred annuity
Elaine and Mellie have been common law partners for the last 15 years. Elaine moved
into Mellie's home 10 years ago and has been contributing to the mortgage and other
household bills. She and Mellie have two children. Elaine spent four years at home wiht
the kids and went back to work last year. Mellie has continued to work throughout and is
their main contributor to their expenses. Elaine and Mellie separate. As common-law
partners, to which of the following does Elaine have the right?
1. Elaine has the right to property division because she has been contributing to the
mortgage and household bills
2. Elaine can seek spousal support because Melli's income supports her
3. Elaine has all the same rights as someone in a married couple
