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Life License Qualification Program LLQP Dumps PDF

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Total 298 questions
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Life License Qualification Program (LLQP) Questions and Answers

Question 37

Svetlana is a 45-year-old single mother with two children: Georgi 17; and Ingrid 13. The children's father, Vladimir, has a serious gambling problem and only visits them sporadically. Vladimir's younger brother Sergei, on the other hand, is a dependable and helpful uncle who helps Svetlana regularly with the children. Svetlana meets with Robert, an insurance agent to review her life insurance needs because she wants to make sure that her children are taken care of if she were to die prematurely. Robert suggests that she purchase a $200,000 policy. Who should she name as a beneficiary?

Options:

A.

Georgi and Ingrid but name Vladimir as a trustee.

B.

Georgi and Ingrid but name Sergei as a trustee.

C.

Sergei

D.

Vladimir

Question 38

Claire, Yvon's client, wants to make changes to her insurance portfolio. In addition to her group insurance, which provides coverage for twice her salary, she has a participating whole life policy, and a 20-year term insurance to cover her debts and provide financial protection for her son. She explains that her job has been abolished and that her employer plans to offer her something else in six months. For now, her budget is significantly affected and she also thinks she has too much insurance. She asks that Yvon cancel her insurance contracts until she starts her new job and to replace them with the least-expensive term insurance possible.

Further to Claire’s request, what should Yvon do?

Options:

A.

Fill out a new needs analysis because she is losing her group insurance coverage. She could take advantage of the cash values and the dividends left on deposit and borrow, leaving her policy as collateral.

B.

Do what Claire wants, because it is up to the client to decide. Yvon could explain to her that starting over will be more expensive, assuming that she remains insurable. Her group insurance provides her with some coverage, at least.

C.

Cancel her coverage, since the cash value and accumulated dividends will provide her with enough liquidity to replace her lost salary. Ten-year term insurance would be cheaper and she will not have to fill out a life insurance replacement declaration.

D.

Encourage Claire to keep her coverage. Yvon must show her, with an updated needs analysis, that she is temporarily losing her group coverage and that different options on her whole life policy could help her financially.

Question 39

Six years ago, Gerard, aged 28, purchased a life insurance policy.

Gerard just got married to Tanya, and they both want to purchase more insurance. Reviewing Gerard’s policy, Tanya notices that Gerard neglected to mention that he had migraines due to concussions suffered from playing football when he was a teenager. Gerard did not intentionally neglect to mention the migraines as the migraines were never an ongoing issue once he stopped playing football.

Which statement is true?

Options:

A.

Since the policy was taken out six years ago, the insurance company would have to prove that Gerard made a fraudulent material misrepresentation, or pay the policy's death benefit.

B.

The insurance company can void the contract under the contestability clause, and nopremiums would be returned to Gerard.

C.

Gerard can admit the mistake to the insurance company to ensure they cannot void the policy due to incomplete information at time of application.

D.

Since the policy was taken out six years ago, the insurance company can void the policy under the mistake clause.

Question 40

Andrea, owner of Andrea’s Fashions Inc., employs her designer daughter Judy, who will carry on the business after Andrea is gone. Wishing to ensure that the business would not suffer financially when Andrea passes away, Andrea decides at age 50 to have her business own, pay for, and be the beneficiary of life insurance on Andrea's life. The type of insurance that best suits is non-convertible Term 10 life insurance renewable until age 80.

What should her life insurance agent advise regarding this policy?

Options:

A.

The coverage will end at Andrea’s age 80.

B.

The coverage can be converted to permanent insurance at any time.

C.

The coverage can only be renewed once.

D.

The coverage will pay a benefit to Judy upon Andrea's death.

Page: 10 / 22
Total 298 questions
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