LLQP Exam Dumps : Life License Qualification Program (LLQP)

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

In a joint first-to-die policy, the death benefit is paid to the surviving insured (primary beneficiary)upon the first death, unless altered. TheIFSE Ethics and Professional Practice Course (Common Law)states that beneficiary designations remain valid unless changed, and divorce does not automatically revoke them in most Canadian common law jurisdictions (unlike some family law contexts). Here, Chad is the primary beneficiary, and the adult children are secondary (contingent) beneficiaries, payable only if Chad predeceased Rachel. Since Rachel died first and the designation wasn’t updated post-divorce, Chad receives the benefit. Joint payment (A) or children claiming first (B) contradicts the primary/secondary structure, and Rachel’s parents (D) have no standing. Thus, C is correct.

Comprehensive and Detailed Explanation:

AD&D pays $50,000 for accidental death. CI ($25,000) requires surviving a 30-day waiting period post-diagnosis (April 20 to May 20); Donald died on April 24, so no CI benefit (Chapter 1:Financial Protection Provided by Accident and Sickness Insurance).

Option A: Incorrect; AD&D applies.

Option B: Incorrect; CI not paid.

Option C: Correct; $50,000 AD&D only.

Option D: Incorrect; CI not triggered.

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

TheIFSE Ethics and Professional Practice Course (Common Law)explains that life insurance policies typically include a suicide clause, which denies the death benefit if the insured commits suicide within a specified period—usually two years—from the policy’s issue date or reinstatement date. When a policy lapses and is reinstated, the suicide exclusion period restarts from the reinstatement date, not the original issue date. In this case, Mordecai’s policy lapsed after four years, was reinstated, and he committed suicide 12 months (less than two years) later. The incontestability clause (which prevents insurers from denying claims based on misstatements after two years) does not override the suicide exclusion, making A incorrect. Public order (B) is irrelevant, and there’s no evidence of a preexisting condition (D) affecting the suicide clause. Thus, Larry should inform the beneficiaries that the claim will be rejected due to the suicide exclusion restarting upon reinstatement, making C correct.