ETHICS LLQP ACTUAL EXAM PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉ Elaine and Mellie have been common law partners for the last 15
years. Elaine moved into Mellie's home 10 years ago and has been
contributing to the mortgage and other household bills. She and
Mellie have two children. Elaine spent four years at home wiht the
kids and went back to work last year. Mellie has continued to work
throughout and is their main contributor to their expenses. Elaine
and Mellie separate. As common-law partners, to which of the
following does Elaine have the right?
1. Elaine has the right to property division because she has been
contributing to the mortgage and household bills
2. Elaine can seek spousal support because Melli's income supports
her
3. Elaine has all the same rights as someone in a married couple
4. Elaine can have Mellie sign a cohabitation agreement when they
separate to retain her spousal and property rights.
Answer: 2. Elaine can seep spousal support because Mellie's income
supports her.
Common Law - is only eligible for spousal support
,Married - can sue for spousal support and property purchased after
marriage
◉ Nellie offers to add a term rider free of charge if he buys a
permanent life insurance policy.
Which prohibited sales practice is Nellie using?
1. Inducing to insure
2. Trafficking in insurance
3. Premium rebating
4. Churning
Answer: 1. Inducing to insure
◉ Roberto is a licensed life insurance agent and he has a deal with
his friend Kelly-Anne, a real estate agent, that he gives her a portion
of his commission for any sale he makes to one of the many clients
she refers. This arrangement is known as which of the following?
1. Inducing to insure.
2. Premium rebating.
3. Referral arrangement.
4. Commission sharing.
Answer: 4. Commission sharing.
, ◉ Nellie purchased a life insurance policy on her son Adamas life for
a face amount of $300,000. She named her husband Danny, Adamas
father, as the successor policyholder. She named Adamas sister, Sally
as the beneficiary of the policy. When Adam reached the age of
majority, Nellie made an absolute assignment of the policy to him.
Adam did nothing about the policy and died a few months later in a
boating accident.
Who received the benefit of the policy?
1. Nellie, the former owner
2. Danny, the former successor policyholder
3. Sally, the former beneficiary
4. Adamas estate
Answer: 4. Adamas estate
◉ Amy recently purchased an insurance policy that pays on her
husband Sheldonas life. The benefit is payable to their son Howard.
Amy also noted on the policy that if she were to predecease Sheldon
the policy should transfer to her sister Bernadette. Which of the
following concerning this situation is correct?
1. Amy is the life insured.
2. Howard is the contingent beneficiary.
3. Bernadette is the successor policyholder.
4. Sheldon is the trustee.
Answer: 3. Bernadette is the successor policyholder.
QUESTIONS WITH SOLUTIONS GRADED A+
◉ Elaine and Mellie have been common law partners for the last 15
years. Elaine moved into Mellie's home 10 years ago and has been
contributing to the mortgage and other household bills. She and
Mellie have two children. Elaine spent four years at home wiht the
kids and went back to work last year. Mellie has continued to work
throughout and is their main contributor to their expenses. Elaine
and Mellie separate. As common-law partners, to which of the
following does Elaine have the right?
1. Elaine has the right to property division because she has been
contributing to the mortgage and household bills
2. Elaine can seek spousal support because Melli's income supports
her
3. Elaine has all the same rights as someone in a married couple
4. Elaine can have Mellie sign a cohabitation agreement when they
separate to retain her spousal and property rights.
Answer: 2. Elaine can seep spousal support because Mellie's income
supports her.
Common Law - is only eligible for spousal support
,Married - can sue for spousal support and property purchased after
marriage
◉ Nellie offers to add a term rider free of charge if he buys a
permanent life insurance policy.
Which prohibited sales practice is Nellie using?
1. Inducing to insure
2. Trafficking in insurance
3. Premium rebating
4. Churning
Answer: 1. Inducing to insure
◉ Roberto is a licensed life insurance agent and he has a deal with
his friend Kelly-Anne, a real estate agent, that he gives her a portion
of his commission for any sale he makes to one of the many clients
she refers. This arrangement is known as which of the following?
1. Inducing to insure.
2. Premium rebating.
3. Referral arrangement.
4. Commission sharing.
Answer: 4. Commission sharing.
, ◉ Nellie purchased a life insurance policy on her son Adamas life for
a face amount of $300,000. She named her husband Danny, Adamas
father, as the successor policyholder. She named Adamas sister, Sally
as the beneficiary of the policy. When Adam reached the age of
majority, Nellie made an absolute assignment of the policy to him.
Adam did nothing about the policy and died a few months later in a
boating accident.
Who received the benefit of the policy?
1. Nellie, the former owner
2. Danny, the former successor policyholder
3. Sally, the former beneficiary
4. Adamas estate
Answer: 4. Adamas estate
◉ Amy recently purchased an insurance policy that pays on her
husband Sheldonas life. The benefit is payable to their son Howard.
Amy also noted on the policy that if she were to predecease Sheldon
the policy should transfer to her sister Bernadette. Which of the
following concerning this situation is correct?
1. Amy is the life insured.
2. Howard is the contingent beneficiary.
3. Bernadette is the successor policyholder.
4. Sheldon is the trustee.
Answer: 3. Bernadette is the successor policyholder.
