IFSE Institute LLQP Exam With Confidence Using Practice Dumps

Since Borealis Fit is a relatively new business with no prior experience data for group insurance, the insurer is likely to use manual rating. This method involves determining premiums based on standard rates for similar groups rather than the specific experience of the group itself. Manual rating is commonly applied when there is no claims history or insufficient data to support a credibility or experience rating. This aligns with LLQP guidelines, which outline manual rating as a default approach for groups without established claims experience​.

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.

Comprehensive and Detailed Explanation From Exact Extract:

In Canada, the transfer of a life insurance policy from agrandparent to a grandchildisnot tax-deferred. However, transferring first to theparent (John's child)and then from parent to Richard qualifies as atax-free rolloverunder the Income Tax Act, as the child-parent-grandchild chain preserves tax deferral. LLQP outlines this indirect transfer as a compliant tax strategy.