New learning resource

Download the new LLQP Study Schedule. It focuses on critical learning areas identified by provincial regulators.

NOTE: The LLQP Study Schedule is available to LLQP student members only. Click here to login and then select the LLQP Study Schedule from the Resources section.

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Welcome

I want to share with you the Ontario LLQP Provincial exam pass rates for December 2010. It compares Advocis students’ pass rate with the pass rate of all other students’ from other providers. Advocis students experienced an 88% success rate on their first attempt while students from all other providers experienced only a 67% pass rate. What this should tell you is that you are taking a course that properly prepares students for their examination. Congratulations—you’ve made a wise choice!

Below are some LLQP sample multiple choice questions for you to try to answer.

1. Alfred and his wife, Helen, recently had a baby. They are excited about being new parents and, like most parents, want the best for their child. Realizing that if something happened to either of them the family’s lifestyle would suffer, they meet with their insurance agent, Marla, to review their insurance portfolio. It is agreed that they need to purchase an additional $500,000 of life insurance. They want to buy life insurance with the lowest premium cost. What is true about term life insurance?

  1. You set the coverage amount, it has flexible premiums, and there is an investment component.
  2. Life time coverage is available, regular premiums, and there is a cash surrender value.
  3. Set the coverage amount, set the period, there is an amount paid to the beneficiary but only at death.
  4. Face amount plus cash surrender amount is paid to beneficiary.

2. On November 15, 2010, Margaret died in a plane crash while flying her own private plane. It was determined that Margaret did not make any fraudulent statements in her life insurance application, dated March 15, 2009. What is the likely outcome?

  1. The insurance company would not pay the claim because Margaret’s death was the cause of crashing her private plane and that is an exclusion in all ordinary life insurance policies.
  2. The insurance company can invoke the contestable clause and avoid the policy.
  3. The insurance company can claim a material misrepresentation and avoid the policy.
  4. The insurance company will pay the policy death benefit proceeds to her beneficiary.

3. Sharon is a manager for a well-known financial training company. She was earning $6,000 per month when she lost her hearing permanently following an operation to remove a malignant tumour in her head. Her disability policy has an “any occupation” definition. It also has a presumptive clause for loss of hearing. The disability policy insures her for 75% of her pre-disability income. After being on disability for nine months, Sharon agrees to do some computer programming at home for her company. She is now earning only $3,000 per month.

What benefit, if anything, will Sharon receive under her policy from the insurance company?

  1. $1,500 per month
  2. $3,000 per month
  3. $4,500 per month
  4. She is not entitled to any disability benefit since she is working.

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Answers

1. c. – Set the coverage amount, set the period, there is an amount paid to the beneficiary only at death.

Reference: Advocis/Foran LLQP program Volume 1, Module 2, Section “Components of A Term Life Insurance Contract”.

2. d. – The insurance company will pay the policy death benefit proceeds to her beneficiary(s).

Reference: Advocis/Foran LLQP program Volume 1, Module 7, Section “Policy Benefits and Riders”.

Rationale: If the question was directed at “accidental death benefit insurance (AD&D)”, the insurance company would not pay the death claim. AD&D insurance excludes air travel (except as a fare paying passenger on a regularly scheduled flight) from the coverage. Since the question was dealing with Margaret’s life insurance policy and not AD&D insurance, her life insurance company would pay the claim.

3. c. – $4,500 per month

Reference: Advocis/Foran LLQP Volume 1, Module 3, Section “Presumptive Clause”

Rationale: The presumptive clause includes a provision for the payment of the full benefit ($4,500) in the event that the insured suffers a specified condition (loss of hearing) without the requirement from the insured to establish any loss of income because of the disability.

I wish you great success on your LLQP exams!

Doug Planche, CFP, CLU, CH.F.C., F.L.M.I.,
Senior Vice President
Foran Financial Institute

Doug Planche is the instructor for the Foran LLQP 4-Day Exam Preparation Seminars. For information on the Foran LLQP seminars, please contact Foran Financial Institute at 1-800-565-0374 or visit www.foranfinancial.com.

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Additional study aids

Preparatory Seminars and Practice Exams

LLQP Prep Seminars – A comprehensive four-day classroom-based seminar intended to prepare you for writing the certification and final licence exams: $545+ taxes
Contact Foran Financial at: 416-947-1922 or 1-800-565-0374.

Please contact Advocis Member Services at 1-877-773-6765 for more details.

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