LLQP- Ethics and Professional Practice
2.0 (quiz style) fully solved
a) The amount will not be paid as there is no beneficiary and no guarantee period. - correct
answer ✔✔Zoey is 65 years old and lives with her only son, John. She receives $2,500 every
month from a life annuity contract. She has not named a beneficiary to the contract and there is
no guarantee period. If Zoey dies, what will happen to the balance of the funds in the annuity
contract?
a) It will not be paid as there is no beneficiary and no guarantee period.
b) It will be paid to Zoey's estate as there is no beneficiary to the contract.
c) It will be paid to John as he is Zoey's only son with whom she lived.
d) It will be paid to the court which will then appoint a trustee for distributing the funds.
a) bonnie must transfer her pension money into a locked in plan and a life income fund (LIF)
would allow access to some of the money to start her business. - correct answer ✔✔Bonnie,
aged 45, has recently resigned her job with a company that she worked at for 20 years. She
plans to open up a craft store in the small town where she lives. She knows that she is entitled
to the $125,000 in the pension plan she had with her company. When she signs all the paper
work, she asks that her pension money be transferred to her checking account. She is planning
on using $100,000 to start her business. What will the HR tell her?
a) Bonnie must transfer her pension money into a locked in plan and a life income fund (LIF)
would allow access to some of the money to start her business.
b) Bonnie must transfer her pension money into a registered retirement income fund (RRIF) and
will not have access to the money to start her business.
c) Bonnie must transfer her pension money into a registered plan, such as a registered
retirement savings plan (RRSP) first, then she can withdraw it.
d) Bonnie must transfe
, a) Personal Information Protection and Electronic Documents Act (PIPEDA) - correct answer
✔✔Mary, a life insurance agent in Ontario, kept her client files on her computer. She was
forgetful so she taped her password to the keyboard of her computer. Mary kept her computer
in an unlocked cabinet in her office. Her office was broken into, her computer was stolen and
her client data was compromised.
With which legislation did Mary fail to comply?
a) Personal Information Protection and Electronic Documents Act (PIPEDA)
b) Privacy Act
c) Provincial Insurance Act
d) Confidentiality Act
a) Vickey, an insurance agent, declines a client's request to purchase a life insurance policy
because of the client's national origin. - correct answer ✔✔Which of the following instances will
be considered discrimination NOT permitted by human rights legislation?
a) Vickey, an insurance agent, declines a client's request to purchase a life insurance policy
because of the client's national origin.
b) Jones, aged 60, applies for long-term care insurance and the insurance company declines his
application owing to his age.
c) Maria and Adam both apply for disability insurance coverage, and all factors being equal,
Maria's premiums are higher than those of Adam's.
d) Hannah, aged 50, was recently diagnosed with a heart disease and her life insurance
application was declined due to her health status.
c) non-registured mutual fund account that names his son as the beneficiary. - correct answer
✔✔Terry is experiencing extreme financial hardship and is weighing his options.
Which of the following accounts could be seized should Terry declare bankruptcy?
2.0 (quiz style) fully solved
a) The amount will not be paid as there is no beneficiary and no guarantee period. - correct
answer ✔✔Zoey is 65 years old and lives with her only son, John. She receives $2,500 every
month from a life annuity contract. She has not named a beneficiary to the contract and there is
no guarantee period. If Zoey dies, what will happen to the balance of the funds in the annuity
contract?
a) It will not be paid as there is no beneficiary and no guarantee period.
b) It will be paid to Zoey's estate as there is no beneficiary to the contract.
c) It will be paid to John as he is Zoey's only son with whom she lived.
d) It will be paid to the court which will then appoint a trustee for distributing the funds.
a) bonnie must transfer her pension money into a locked in plan and a life income fund (LIF)
would allow access to some of the money to start her business. - correct answer ✔✔Bonnie,
aged 45, has recently resigned her job with a company that she worked at for 20 years. She
plans to open up a craft store in the small town where she lives. She knows that she is entitled
to the $125,000 in the pension plan she had with her company. When she signs all the paper
work, she asks that her pension money be transferred to her checking account. She is planning
on using $100,000 to start her business. What will the HR tell her?
a) Bonnie must transfer her pension money into a locked in plan and a life income fund (LIF)
would allow access to some of the money to start her business.
b) Bonnie must transfer her pension money into a registered retirement income fund (RRIF) and
will not have access to the money to start her business.
c) Bonnie must transfer her pension money into a registered plan, such as a registered
retirement savings plan (RRSP) first, then she can withdraw it.
d) Bonnie must transfe
, a) Personal Information Protection and Electronic Documents Act (PIPEDA) - correct answer
✔✔Mary, a life insurance agent in Ontario, kept her client files on her computer. She was
forgetful so she taped her password to the keyboard of her computer. Mary kept her computer
in an unlocked cabinet in her office. Her office was broken into, her computer was stolen and
her client data was compromised.
With which legislation did Mary fail to comply?
a) Personal Information Protection and Electronic Documents Act (PIPEDA)
b) Privacy Act
c) Provincial Insurance Act
d) Confidentiality Act
a) Vickey, an insurance agent, declines a client's request to purchase a life insurance policy
because of the client's national origin. - correct answer ✔✔Which of the following instances will
be considered discrimination NOT permitted by human rights legislation?
a) Vickey, an insurance agent, declines a client's request to purchase a life insurance policy
because of the client's national origin.
b) Jones, aged 60, applies for long-term care insurance and the insurance company declines his
application owing to his age.
c) Maria and Adam both apply for disability insurance coverage, and all factors being equal,
Maria's premiums are higher than those of Adam's.
d) Hannah, aged 50, was recently diagnosed with a heart disease and her life insurance
application was declined due to her health status.
c) non-registured mutual fund account that names his son as the beneficiary. - correct answer
✔✔Terry is experiencing extreme financial hardship and is weighing his options.
Which of the following accounts could be seized should Terry declare bankruptcy?
