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IFSE Institute LLQP Exam Syllabus Topics:
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Pass Guaranteed Quiz 2026 IFSE Institute LLQP: Life License Qualification Program (LLQP) – The Best Exams Training
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IFSE Institute Life License Qualification Program (LLQP) Sample Questions (Q79-Q84):
NEW QUESTION # 79
Bea is a married 65-year-old woman applying for a life insurance policy. She meets with Stanley, her insurance agent, to review her insurance needs. Stanley inquires if Bea has started receiving Old Age Security (OAS) and Canada Pension Plan (CPP) benefits. Why is it important for Stanley to know this?
- A. Her spouse may be eligible for survivor benefits upon her death.
- B. To calculate her retirement income.
- C. These funds are taxable and may increase her need for life insurance.
- D. Her life insurance needs may decrease if she is retired.
Answer: D
Explanation:
Knowing whether Bea is receiving OAS and CPP benefits helps Stanley assess her life insurance needs, which may decrease upon retirement as there may be less need to replace income. As Bea isno longer dependent on employment income, her insurance needs could reduce if she relies on stable retirement income sources like OAS and CPP. Therefore,Option Breflects why this information is relevant in the context of life insurance planning.
NEW QUESTION # 80
Group insurance and group annuity representative Zaheb recently sold a group insurance contract to Alumo Inc., a company that employs about 50 plant employees. This is the first time the company offers such a plan.
The employees are asking the company questions about how the prescription drug plan works. They are especially surprised to see that the plan covers very few of the brand name drugs often prescribed by their physicians. What should Zaheb do?
- A. Notify the insurer because it alone is able to explain the prescription drug plan rules to the employees.
- B. Put an employee information program in place to explain the rules of the prescription drug plan.
- C. Let Alumo answer its employees' questions about the prescription drug plan because it is best placed to understand their concerns.
- D. Recommend that the employees consult the Medical Information Bureau's (MIB) official website, which explains how prescription drug plans work.
Answer: B
Explanation:
Comprehensive and Detailed Explanation:
Zaheb, as the agent, should educate employees via an information program to clarify coverage (e.g., generic vs. brand name drugs) (Chapter 8:Group Plan Specifics).
Option A: Incorrect; Alumo lacks expertise.
Option B: Incorrect; MIB doesn't explain plans.
Option C: Correct; agent's role.
Option D: Incorrect; insurer delegates to agent.
Reference: LLQP Accident and Sickness Insurance Manual, Chapter 8:Group Plan Specifics.
NEW QUESTION # 81
Jonas recently graduated with his engineering degree and is joining the Alberta Engineering Association. He is informed that the association offers a group plan to all members. Jonas wants to join the plan but wishes to know who will pay the premiums for the coverage.
Which of the following answers is CORRECT?
- A. The premiums are split between the members and the association.
- B. Initially, the members must pay 100% of the premiums but after 3 years in the plan, the premiums are split with the association.
- C. The members must pay 100% of the premiums.
- D. The Association will pay 100% of the premiums.
Answer: C
Explanation:
Typically, when associations like the Alberta Engineering Association offer group insurance plans, these plans arevoluntary, and members are generally responsible for paying the full premium. This arrangement is common in association group plans, where membership is optional, and individuals must choose to opt in and pay their share. The LLQP materials outline that association-sponsored group plans often work this way unless otherwise specified, as there is no indication that the association shares in the premium costs.
NEW QUESTION # 82
Planet Source decides to implement a defined contribution pension plan (DCPP) for its 75 employees. The company's president appoints Josie, the human resources director, as the plan administrator.
Which of the following BEST describes Josie's responsibility as a plan administrator?
- A. To manage the pension plan
- B. To set the benefit structure
- C. To address funding shortfalls
- D. To amend the pension plan
Answer: A
Explanation:
As a plan administrator for a defined contribution pension plan (DCPP), Josie's primary responsibility is to manage the pension plan, which includes overseeing day-to-day operations, ensuring regulatory compliance, and handling communications with plan members. According to LLQP, plan administrators are tasked with ensuring the effective management and administration of the plan, rather than setting benefit structures or addressing funding issues, which are typically responsibilities of the employer.
Options B, C, and D describe responsibilities typically held by the employer or plan sponsor, not the administrator.
NEW QUESTION # 83
Kadiha invested $10,000 in a balanced fund 10 years ago, which she put into a non-registered account. At the time, her insurance agent sold her the fund with a 75% maturity and death benefit guarantee. Today, when the fund expires, the market value is $5,000.
How much will Kadiha receive, and how will her funds be treated for tax purposes?
- A. $7,500, of which $2,500 will be taxed as interest, dividend, and capital gain.
- B. $7,500, tax free.
- C. $7,500, of which $2,500 will be taxed as capital gain.
- D. $7,500, of which $2,500 will be taxed as interest income.
Answer: B
Explanation:
Kadiha's investment in a segregated fund with a 75% maturity guarantee means that upon maturity, she is guaranteed to receive 75% of her original investment, which would be $7,500 (75% of $10,000). The payment is considered part of the maturity guarantee under segregated fund contracts, and the difference paid out by the insurer to meet the guarantee ($2,500 in this case) is not subject to capital gains or interest income tax as it' s part of the guaranteed benefit. According to LLQP guidelines, segregated funds with such guarantees only tax the difference as capital gains if the payout exceeds the original investment, which is not applicable here.
NEW QUESTION # 84
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