LLQP Test Pdf, Exam Dumps LLQP Provider
LLQP Test Pdf, Exam Dumps LLQP Provider
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Tags: LLQP Test Pdf, Exam Dumps LLQP Provider, LLQP Valid Dumps Files, LLQP Hot Spot Questions, LLQP Reliable Braindumps Ppt
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IFSE Institute Life License Qualification Program (LLQP) Sample Questions (Q120-Q125):
NEW QUESTION # 120
Antonin and Magali are common-law partners in their thirties. They have two children together: a five-year- old daughter and a two-year-old son. Divorced from ex-wife Vanina, Antonin must pay her $1,500 a month in child support until their 10-year-old son reaches 25 years of age. Antonin is covered under a group life insurance policy equal to one year of his $75,000 annual salary. Magali does not currently earn any income, as she takes care of their two children full-time. Antonin is the sole owner of their residence, which will be fully paid off in 25 years.
What life insurance coverage do Antonin and Magali need in their situation?
- A. Permanent coverage to replace Antonin's income.
- B. Mortgage payment coverage, group insurance coverage equal to twice Antonin's annual salary and 15- year term coverage to support the child from his previous relationship.
- C. Mortgage payment coverage, term-to-age 65 coverage to replace Antonin's income and 15-year term coverage to support the child from his previous relationship.
- D. Permanent coverage to replace Antonin's income and 15-year term coverage to support the child from his previous relationship.
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract:
This is a multi-need situation. The LLQP recommends layering coverage:
* A 25-year term policy for mortgage protection.
* A term-to-65 policy for income replacement.
Reference: Insurance Study Guides Chinese.pdf, Needs Analysis - Family and Legal Obligations
NEW QUESTION # 121
Leonard and Ashley, a couple in their early 30s, meet with Howard, an insurance agent, to review their investment needs. Leonard earns $60,000 a year as a research physicist, and Ashley earns $25,000 as an actress. They each have $3,000 in their respective chequing accounts. Leonard also has $40,000 invested in his group registered retirement savings plan (RRSP). Ashley has a Subaru WRX worth $20,000 with a car loan of $10,000. Leonard does not own a car, but he has an outstanding student loan of $30,000.
What is the couple's net worth?
- A. $111,000
- B. $23,000
- C. $26,000
- D. $56,000
Answer: C
Explanation:
To calculate net worth, we sum the couple's assets and subtract their liabilities. The calculation is as follows:
Assets:
* Leonard's chequing account: $3,000
* Ashley's chequing account: $3,000
* Leonard's group RRSP: $40,000
* Ashley's car (Subaru WRX): $20,000
Total Assets:$66,000
Liabilities:
* Ashley's car loan: $10,000
* Leonard's student loan: $30,000
Total Liabilities:$40,000
Net Worth Calculation:$66,000 (Assets) - $40,000 (Liabilities) = $26,000 The couple's net worth is therefore $26,000, which aligns with LLQP methodologies for net worth calculations by considering all assets minus liabilities.
NEW QUESTION # 122
(Ten years ago, Yamina invested $2,500 in a segregated fund contract with a 75%/100% guarantee structure. The market value of the contract peaked at $4,500 but then fell. Now, at maturity, the units are worth $2,250.
How much can Yamina expect to receive?)
- A. $3,375
- B. $1,875
- C. $2,500
- D. $2,250
Answer: C
Explanation:
With a75% maturity guarantee, Yamina is guaranteed to receive at least75% of the original investmentat maturity, regardless of market performance.
75% × $2,500 =$1,875, but because there is aresetpossibility if applicable and a100% death benefit guarantee, and if there had been any resets (not mentioned here), she would get the original amount$2,500 based on the basic guarantee.
Exact Extract:
"At maturity, if the market value is less than the guaranteed amount (typically 75% or 100% of the deposited amount), the maturity guarantee is paid." (Reference:Segfunds-E313-2020-12-7ED, Chapter 2.1.1 Guarantees#33:4†Segfunds-E313-2020-12-7ED.
pdf**)
NEW QUESTION # 123
Laraine wants to purchase an Individual Variable Insurance Contract (IVIC) because of the death benefit guarantee as she has been ill. She has decided on a segregated fund which has, as its underlying asset, units of a mutual fund that invests in North American common shares. Her insurance agent, Jeffrey, wants her to understand key issues before she completes and signs the application. What should Jeffrey do?
- A. Tell her she must complete a medical questionnaire which will be attached to the application.
- B. Provide her with the summary information folder for the segregated fund.
- C. Tell her she has a 10-day "free look" to review the contract.
- D. Provide her with the prospectus issued for the underlying mutual fund units.
Answer: B
Explanation:
Comprehensive and Detailed in Depth Explanation with Exact Extract from Documents and Guides:
An IVIC, such as a segregated fund, is an insurance product with investment components, and agents are required to ensure clients understand its features. TheIFSE Ethics and Professional Practice Course (Common Law)mandates that agents provide a summary information folder (or similar disclosure document) specific to the segregated fund, outlining its risks, benefits, and guarantees (like the death benefit). A prospectus (A) is for mutual funds, not segregated funds, which have distinct disclosure requirements. While a 10-day "free look" period (C) exists, it's not the primary disclosure step before signing. A medical questionnaire (D) may be required but isn't about understanding the product. Jeffrey's duty is to ensure Laraine understands the segregated fund via the summary information folder, making B correct.
References:
IFSE Ethics and Professional Practice Course (Common Law), Module 5: Investment Products and Insurance, Section on "Segregated Funds Disclosure."
NEW QUESTION # 124
(Nancy has invested $100,000 in mining company stocks in her local area.
To which of the following risks is Nancy most exposed?)
- A. Liquidity risk
- B. Inflation risk
- C. Interest rate risk
- D. Industry risk
Answer: D
Explanation:
By investing heavily in asingle sector(mining), Nancy facesindustry risk. Industry-specific issues such as regulation changes, market conditions, or operational challenges could severely impact her investments.
Exact Extract:
"Industry risk is the risk that factors affecting an entire industry may negatively impact investments within that sector. Concentrating investments in a single industry increases exposure to this type of risk." (Reference:Segfunds-E313-2020-12-7ED, Chapter 1.4.9 Industry Risk)
NEW QUESTION # 125
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