LLQP Exam Dumps : Life License Qualification Program (LLQP)

For an insurance representative such as Everett who intends to transition to an independent role,maintaining adequate professional liability insurance is crucial. According to LLQP guidelines, the requirements for liability insurance coverage mandate that if the policy includes a deductible, it cannot exceed $20,000 per claim​. This limit helps ensure that insurance representatives can reasonably cover the deductible amount without facing significant financial hardship in case of a claim.

Regarding the other answer choices:

A liability insurance policy is typically required to have a minimum coverage of $1,000,000 per claim, not $1,500,000​.

Professional liability insurance does not cover gross negligence, fraud, or intentional misconduct such as fraud or misappropriation​. It is designed to cover errors, omissions, and negligence within the scope of professional duties, provided they are not intentional or fraudulent acts.

Therefore, option B accurately reflects LLQP stipulations regarding the deductible limit on professional liability insurance for insurance representatives.

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Comprehensive and Detailed In-Depth Explanation: Adèle seeks an immediate term annuity with payments starting in one month, funded by a lump sum. In annuity contracts (Civil Code, Article 2368), “alienation” means transferring capital ownership to the insurer, which then guarantees payments. Option A explains this: once Adèle’s $300,000 is alienated, the insurer assumes control, and with payments starting in one month, it’s in the payment phase (no significant accumulation). This aligns with an immediate annuity per the LLQP. Option B is incorrect—alienation means Adèle loses ownership, barring emergency access. Option C’s “deferred annuity” contradicts the one-month start. Option D misuses “capitalization phase” (growth period) for an immediate annuity already paying out. The Ethics manual requires advisors like Germain to clarify terms simply and accurately.

Beneficiary changes in insurance contracts generally become effective once the insurer receives and processes the signed change form. This is supported by LLQP material, which specifies that changes to beneficiary designations must be documented and received by the insurer for the new designation to take effect. Since Linda is a revocable beneficiary, Luisa can make this change without requiring Linda's consent​​.

Option B is incorrect as revocable beneficiaries do not require consent for changes. Option C is too general, and D is incorrect because a formal written change form is typically required.