IFSE Institute LLQP Exam : Life License Qualification Program (LLQP)

Omar and Martha are common-law spouses employed by a company that has a group life and disability insurance plan. Omar has named Martha his beneficiary while Martha has named Omar as her beneficiary.
Omar and Martha got drunk one Saturday night, stole a car, and decided to rob a convenience store. As they drove away from the store, Omar hit a light post. He became permanently disabled while Martha died at the scene. What will happen when Omar submits claim forms for disability and death benefits?

• A. The insurer will not pay the death benefit to Omar but will pay him a disability benefit.
• B. The insurer will not pay the death benefit to Omar and will not pay him a disability benefit.
• C. The insurer will pay the death benefit to Omar and will pay him a disability benefit.
• D. The insurer will pay the death benefit to Omar but will not pay him a disability benefit.

Amani owns Amani's Passions, an eco-friendly cosmetics company she started in her garage three years ago.
The business is booming-so much so that Amani's Passions recently hired over 20 employees to keep up with demand. Now Amani wants to set up a group insurance plan for her staff.
Whose role is it to solicit quotes from insurers and put the right plan in place?

• A. The group broker.
• B. The group plan sponsor.
• C. The group insurance provider selected by Amani.
• D. Amani's Passions' human resources department.

Jack is excited to be joining his new employer, which offers group medical, dental, and retirement benefits to its employees. For his meeting with Human Resources, he brings his completed application form for medical and dental coverage, as well as a form to contribute to the GRRSP, since his employer matches contributions.
The HR representative returns his application forms for group benefits to Jack and tells him that he is not eligible until certain conditions are met.
When might Jack become eligible?

• A. At the end of his GRRSP contribution vesting period.
• B. At the end of a standard waiting period.
• C. On the group plan's renewal date.
• D. After the number of days required by law to contribute to his GRRSP.

Melissa owns a disability insurance policy from Clarity Life. She makes her premium payment on the second day of each month, but this month, she misses the payment deadline. A week passes before she realizes her oversight. She makes a frantic call to Jonathan, a Clarity Life customer service representative. Jonathan explains about notices of termination. Which of the following responses is CORRECT?

• A. Melissa's policy would only be cancelled 30 days after the due date of her missed premium payment.
• B. Melissa's policy has a grace period and would not be cancelled until 15 days after Clarity Life mails her a notice of termination.
• C. Melissa's policy was cancelled 24 hours after she missed her payment, and Clarity mailed her a notice of termination.
• D. Melissa's policy has a grace period and would not be cancelled until 10 days after Clarity Life mails her a notice of termination.

Larry, an insurance agent, meets with Ethan, a freelance photographer, to review his insurance needs. Larry tells Ethan that he wants to collect all pertinent financial information to prepare a net worth statement for Ethan.
Why does Larry want to prepare Ethan's net worth statement?

• A. To determine how much Ethan can spend on accident and sickness insurance premiums.
• B. To determine Ethan's various sources of income.
• C. To determine if Ethan has enough resources to cover medical expenses if he had a medical emergency.
• D. To have enough information to identify where Ethan spends his money.