Ethics - LLQP
Amy recently purchased an insurance policy that pays on her husband Sheldonâs 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. - ANS-3. Bernadette is the successor policyholder.
* who is paying?
Baxter recently passed away and in his will he named his long-time friend Alabaster to
manage and distribute his assets according to his wishes set out in the will. In regard to this
situation, which of the following is true?
1 - Baxter is considered the executor and Alabaster the trustee.
2 - Due to his position in the estate, Alabaster is not also able to be a named beneficiary.
3 - Alabaster's first legal obligation is to transfer the assets to the beneficiaries.
4 - Not all of Baxter's assets are likely to pass through his estate. - ANS-4 - Not all of
Baxtar's assets are likely to pass through his estate (as any plans with named beneficiaries
or jointly held assets would not form part of his estate)
Beltran is considering a career as an insurance agent and has some questions regarding the
licensing process. Which of the following is true?
1 - Depending on his business focus, there are three types of the LLQP Beltran may take.
2 - In addition to completing the LLQP, the appropriate licensing authority must approve
Beltran's application.
3 - If Beltran is licensed in his home province, he can offer insurance services in any
province.
4 - Once he receives his insurance license Beltran may offer life insurance, annuities, and
property insurance to his clients. - ANS-2 - In addition to completing the LLQP, the
appropriate licensing authority must approve Beltran's application.
Calder is a member of his employerâs group insurance which includes disability coverage.
Calder has some questions with regard to this policy and its provisions. Which of the
following is correct?
1. Calderâs disability benefits will cover him from work related injury or disability.
2. A claim made by Calder must satisfy the definition of disability set out in his provinces
insurance legislation.
3. Detailed medical evidence from a physician may be necessary to substantiate a claim.
4. Disability insurance provides coverage from disability arising only from physical
impairment resulting in the inability to work. - ANS-2. A claim made by Calder must satisfy
the definition of disability set out in his provinces insurance legislation.
Carla is an insurance agent and has brokered for her client Jeremiah to sell his insurance
contract to an unrelated third party. This practice is best referred to as which of the
following?
1 - Twisting.
, 2 - Trafficking
3 - Fronting.
4 - Inducing. - ANS-5. Trafficking
Carla is an insurance agent and has brokered for her client Jeremiah to sell his insurance
contract to an unrelated third party. This practice is best referred to as which of the
following?
1. Fronting.
2. Inducing.
3. Trafficking
4. Twisting. - ANS-3. Trafficking
Christine is meeting with an insurance advisor as she is considering purchasing insurance,
however she is unsure what the rules are surrounding the cancellation of the policy. Which of
the following statements made by the advisor are correct?
1 - The policy can be cancelled by both, the policyholder or the insurer at any time during the
life of the contract.
2 - The insurer will void a policy immediately for any non-payment of premiums forcing the
insured to re-apply for coverage.
3 - The insured may cancel the policy only if she finds a misrepresentation on the policy.
4 - "Insurance contracts are unilateral contracts, which impacts each party's right to cancel
the contract differently." - ANS-3. Insurance contracts are unilateral contracts, which impacts
each party's right to cancel the contract differently.
Clarence is training to become an insurance agent and was told it is important that he
understand all aspect of public insurance and retirement programs and monitor changes to
such programs. Which of the following best describes why this is important for him to
understand?
1. To ensure his clients have adequate retirement income to support their insurance costs.
2 - To be able to complete a full financial plan for each client.
3 - To try and overlap benefits in order to collect double payments where possible under a
privately sponsored health plan.
4 - So any needs analysis or advice provided takes into account relevant information. -
ANS-4 - So any needs analysis or advice provided takes into account relevant information.
Danny is a new life insurance agent. He wants to know which of the following is a
professional association and not a regulating authority.What do you tell Danny?
1 - Canadian Insurance Services Regulatory Organizations (CISRO)
2 - Canadian Life and Health Insurance Association (CLHIA)
3 - Canadian Council of Insurance Regulators (CCIR)
4 - Advocis - ANS-2 - CLHIA
Danny is a new life insurance agent. He wants to know which of the following is a
professional association and not a regulating authority.What do you tell Danny?
1. Canadian Insurance Services Regulatory Organizations (CISRO)
2. Advocis
3. Canadian Life and Health Insurance Association (CLHIA)
4. Canadian Council of Insurance Regulators (CCIR) - ANS-3. Canadian Life and Health
Insurance Association (CLHIA)
Diana is a new life insurance agent and is studying the requirements for ascertaining the
client's identity under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act
and Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) guideline
6A.
Amy recently purchased an insurance policy that pays on her husband Sheldonâs 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. - ANS-3. Bernadette is the successor policyholder.
* who is paying?
Baxter recently passed away and in his will he named his long-time friend Alabaster to
manage and distribute his assets according to his wishes set out in the will. In regard to this
situation, which of the following is true?
1 - Baxter is considered the executor and Alabaster the trustee.
2 - Due to his position in the estate, Alabaster is not also able to be a named beneficiary.
3 - Alabaster's first legal obligation is to transfer the assets to the beneficiaries.
4 - Not all of Baxter's assets are likely to pass through his estate. - ANS-4 - Not all of
Baxtar's assets are likely to pass through his estate (as any plans with named beneficiaries
or jointly held assets would not form part of his estate)
Beltran is considering a career as an insurance agent and has some questions regarding the
licensing process. Which of the following is true?
1 - Depending on his business focus, there are three types of the LLQP Beltran may take.
2 - In addition to completing the LLQP, the appropriate licensing authority must approve
Beltran's application.
3 - If Beltran is licensed in his home province, he can offer insurance services in any
province.
4 - Once he receives his insurance license Beltran may offer life insurance, annuities, and
property insurance to his clients. - ANS-2 - In addition to completing the LLQP, the
appropriate licensing authority must approve Beltran's application.
Calder is a member of his employerâs group insurance which includes disability coverage.
Calder has some questions with regard to this policy and its provisions. Which of the
following is correct?
1. Calderâs disability benefits will cover him from work related injury or disability.
2. A claim made by Calder must satisfy the definition of disability set out in his provinces
insurance legislation.
3. Detailed medical evidence from a physician may be necessary to substantiate a claim.
4. Disability insurance provides coverage from disability arising only from physical
impairment resulting in the inability to work. - ANS-2. A claim made by Calder must satisfy
the definition of disability set out in his provinces insurance legislation.
Carla is an insurance agent and has brokered for her client Jeremiah to sell his insurance
contract to an unrelated third party. This practice is best referred to as which of the
following?
1 - Twisting.
, 2 - Trafficking
3 - Fronting.
4 - Inducing. - ANS-5. Trafficking
Carla is an insurance agent and has brokered for her client Jeremiah to sell his insurance
contract to an unrelated third party. This practice is best referred to as which of the
following?
1. Fronting.
2. Inducing.
3. Trafficking
4. Twisting. - ANS-3. Trafficking
Christine is meeting with an insurance advisor as she is considering purchasing insurance,
however she is unsure what the rules are surrounding the cancellation of the policy. Which of
the following statements made by the advisor are correct?
1 - The policy can be cancelled by both, the policyholder or the insurer at any time during the
life of the contract.
2 - The insurer will void a policy immediately for any non-payment of premiums forcing the
insured to re-apply for coverage.
3 - The insured may cancel the policy only if she finds a misrepresentation on the policy.
4 - "Insurance contracts are unilateral contracts, which impacts each party's right to cancel
the contract differently." - ANS-3. Insurance contracts are unilateral contracts, which impacts
each party's right to cancel the contract differently.
Clarence is training to become an insurance agent and was told it is important that he
understand all aspect of public insurance and retirement programs and monitor changes to
such programs. Which of the following best describes why this is important for him to
understand?
1. To ensure his clients have adequate retirement income to support their insurance costs.
2 - To be able to complete a full financial plan for each client.
3 - To try and overlap benefits in order to collect double payments where possible under a
privately sponsored health plan.
4 - So any needs analysis or advice provided takes into account relevant information. -
ANS-4 - So any needs analysis or advice provided takes into account relevant information.
Danny is a new life insurance agent. He wants to know which of the following is a
professional association and not a regulating authority.What do you tell Danny?
1 - Canadian Insurance Services Regulatory Organizations (CISRO)
2 - Canadian Life and Health Insurance Association (CLHIA)
3 - Canadian Council of Insurance Regulators (CCIR)
4 - Advocis - ANS-2 - CLHIA
Danny is a new life insurance agent. He wants to know which of the following is a
professional association and not a regulating authority.What do you tell Danny?
1. Canadian Insurance Services Regulatory Organizations (CISRO)
2. Advocis
3. Canadian Life and Health Insurance Association (CLHIA)
4. Canadian Council of Insurance Regulators (CCIR) - ANS-3. Canadian Life and Health
Insurance Association (CLHIA)
Diana is a new life insurance agent and is studying the requirements for ascertaining the
client's identity under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act
and Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) guideline
6A.
