IFSE Institute LLQP Exam With Confidence Using Practice Dumps

Comprehensive and Detailed Explanation:

Credibility rating (20%) reflects the weight given to the group’s claims experience; the remaining 80% (100% - 20%) is based on the standard manual rate (Chapter 8:Group Plan Specifics).

Option A: Incorrect; too low.

Option B: Incorrect; matches credibility, not manual rate.

Option C: Correct; 80%.

Option D: Incorrect; too high.

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.

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.