LLQP-Ethics and Professional Practice
Alan is currently employed and covered under a group insurance policy. He is going to open
a startup next year and is planning to leave his job and convert his group insurance policy to
an individual plan. Which of the following conditions should be met by Alan to be able to
convert his group plan into an individual policy? - ANS-He should apply for conversion within
31 days of terminating his group plan.
Angelo purchases a registered annuity contract form XYZ Insurers, through his agent. His
immediate family comprises of his wife and a son. Which of the following is true about the
parties involved in Angelo's annuity contract? - ANS-Angelo will be the policyholder, the
annuitant, and the payee.
Anne is hit by a car and she is unable to go to work due to a fractured leg. The court
declares the car driver to be at fault and awards Anne a compensation in the form of a
structured settlement. Which of the following statements about this structured settlement is
true? - ANS-It is a single-premium annuity that is given special tax treatment.
Brad owns a life insurance policy on his own life. As he is now growing older and becoming
forgetful, he makes an absolute assignment of his policy to his son, Eric. Eric accepts and is
made the new policy owner.
Which of the following is true about the absolute assignment? - ANS-Eric can name his own
beneficiaries.
Carla tells her client, Janice that she qualifies for an RRSP loan based on her financial
standing. The loan is normally offered at the prime rate. Carla says that she can only offer
Janice the loan if Janice agrees to transfer her RRSP to Carla's financial institution.
What is this deceptive practice called? - ANS-Tied Selling- Tied selling involves making the
purchase of one product contingent on the purchase of the other.
Celia applied for a life insurance policy through her agent, Rayne, a few weeks ago. Her
application was approved and Rayne visits her to deliver the approved contract. During the
visit, Rayne notices that Celia is unwell and she tells him that her doctor has prescribed
some medical tests and she thinks it could be the seasonal flu. What should Rayne do upon
noticing Celia's health condition? - ANS-If the agent notices that there have been significant
changes in the client's insurability since the application was signed, he must not give him the
policy and he must have the application updated.
Claire owns a life insurance policy and names her spouse, Jacob, as the beneficiary in a will
and files it with the insurer. Due to health issues, Claire stops working and misses her
premium payments for a few months after which she dies. Jacob makes a claim, but his
claim is denied by the insurer. What could be the reason? - ANS-The insurance policy
lapsed
Danny is a new life insurance agent. He wants to know what the key responsibility is for a
professional association within the insurance industry. Which initiative best describes the
focus for professional associations? - ANS-Ethical behaviour and fair treatment of clients
Denise has a life annuity with ABC Insurance Co. and receives $2,500 a month in income.
ABC Insurance Co becomes insolvent and is unable to meet their financial obligations. How
much will Denise receive in monthly income based on the protection provided by Assuris? -
ANS-$2,125
Alan is currently employed and covered under a group insurance policy. He is going to open
a startup next year and is planning to leave his job and convert his group insurance policy to
an individual plan. Which of the following conditions should be met by Alan to be able to
convert his group plan into an individual policy? - ANS-He should apply for conversion within
31 days of terminating his group plan.
Angelo purchases a registered annuity contract form XYZ Insurers, through his agent. His
immediate family comprises of his wife and a son. Which of the following is true about the
parties involved in Angelo's annuity contract? - ANS-Angelo will be the policyholder, the
annuitant, and the payee.
Anne is hit by a car and she is unable to go to work due to a fractured leg. The court
declares the car driver to be at fault and awards Anne a compensation in the form of a
structured settlement. Which of the following statements about this structured settlement is
true? - ANS-It is a single-premium annuity that is given special tax treatment.
Brad owns a life insurance policy on his own life. As he is now growing older and becoming
forgetful, he makes an absolute assignment of his policy to his son, Eric. Eric accepts and is
made the new policy owner.
Which of the following is true about the absolute assignment? - ANS-Eric can name his own
beneficiaries.
Carla tells her client, Janice that she qualifies for an RRSP loan based on her financial
standing. The loan is normally offered at the prime rate. Carla says that she can only offer
Janice the loan if Janice agrees to transfer her RRSP to Carla's financial institution.
What is this deceptive practice called? - ANS-Tied Selling- Tied selling involves making the
purchase of one product contingent on the purchase of the other.
Celia applied for a life insurance policy through her agent, Rayne, a few weeks ago. Her
application was approved and Rayne visits her to deliver the approved contract. During the
visit, Rayne notices that Celia is unwell and she tells him that her doctor has prescribed
some medical tests and she thinks it could be the seasonal flu. What should Rayne do upon
noticing Celia's health condition? - ANS-If the agent notices that there have been significant
changes in the client's insurability since the application was signed, he must not give him the
policy and he must have the application updated.
Claire owns a life insurance policy and names her spouse, Jacob, as the beneficiary in a will
and files it with the insurer. Due to health issues, Claire stops working and misses her
premium payments for a few months after which she dies. Jacob makes a claim, but his
claim is denied by the insurer. What could be the reason? - ANS-The insurance policy
lapsed
Danny is a new life insurance agent. He wants to know what the key responsibility is for a
professional association within the insurance industry. Which initiative best describes the
focus for professional associations? - ANS-Ethical behaviour and fair treatment of clients
Denise has a life annuity with ABC Insurance Co. and receives $2,500 a month in income.
ABC Insurance Co becomes insolvent and is unable to meet their financial obligations. How
much will Denise receive in monthly income based on the protection provided by Assuris? -
ANS-$2,125
