ETHICS – LLQP EXAM QUESTIONS
WITH ELABORATED ANSWERS
, Diana is a new life insurance agent and is studying the requirements for ascertaining
the clientâs identity under the Proceeds of Crime (Money Laundering) and Terrorist
Financing Actand Financial Transactions and Reports Analysis Centre of Canada
(FINTRAC) guideline 6A.
For which of the following products must agents ascertain the clientâs identity?
1. Immediate annuity and deferred annuity
2. Exempt life insurance policy and TFSA
3. Deferred annuity and exempt life insurance policy
4. Deferred annuity and TFSA - ANSWER1. Immediate annuity and deferred annuity
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. - ANSWER2. 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 - ANSWER1. 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. - ANSWER4. Commission sharing.
WITH ELABORATED ANSWERS
, Diana is a new life insurance agent and is studying the requirements for ascertaining
the clientâs identity under the Proceeds of Crime (Money Laundering) and Terrorist
Financing Actand Financial Transactions and Reports Analysis Centre of Canada
(FINTRAC) guideline 6A.
For which of the following products must agents ascertain the clientâs identity?
1. Immediate annuity and deferred annuity
2. Exempt life insurance policy and TFSA
3. Deferred annuity and exempt life insurance policy
4. Deferred annuity and TFSA - ANSWER1. Immediate annuity and deferred annuity
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. - ANSWER2. 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 - ANSWER1. 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. - ANSWER4. Commission sharing.
