IFSE Institute LLQP Exam With Confidence Using Practice Dumps

Comprehensive and Detailed in Depth Explanation with Exact Extract from Documents and Guides:

Under Canadian common law and insurance principles, claims can be denied if the insured’s death or disability results from illegal activities. TheIFSE Ethics and Professional Practice Course (Common Law)notes that exclusions in group insurance policies often include losses due to criminal acts. Here, Omar and Martha were engaged in theft and robbery—illegal activities—when the accident occurred. Martha’s death and Omar’s disability directly resulted from this criminal behavior. As a result, the insurer can deny both the death benefit (payable to Omar as Martha’s beneficiary) and Omar’s disability benefit under the policy’s exclusions. Paying either benefit (A, C, D) contradicts the principle that insurance does not cover losses from illegal acts. Thus, B is correct.

Insurance records must generally be retained for a minimum period to comply with provincialregulatory requirements, which is often five years from the date of termination. This helps ensure compliance with record-keeping mandates and allows for any legal, financial, or administrative review if needed. Gino is obligated to retain Nathan’s file until it has been closed for at least five years, despite the change in representation or policy status​​.

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Comprehensive and Detailed Explanation:

Business overhead expense (BOE) insurance covers fixed business costs (e.g., rent, salaries) during the owner’s disability, keeping the bakery operational (Chapter 5:Insurance to Protect Businesses).

Option A: Correct; BOE fits her concern for short-term business continuity.

Option B: Incorrect; buyout insurance is for partnership dissolution.

Option C: Incorrect; personal disability covers income, not business expenses.

Option D: Risky; self-funding depletes savings.