May-2026 IFSE Institute LLQP Certification Real 2026 Mock Exam [Q108-Q123]

Rate this post

May-2026 IFSE Institute LLQP Certification Real 2026 Mock Exam

LLQP Exam Questions and Valid PMP Dumps PDF

Q108. Cecilia, a licensed life insurance agent, delivers a life insurance policy to her client Tony, a newly landed immigrant. Tony would like to pay the policy using the pre-authorized monthly payment method. However, he does not have a bank account in Canada yet and doubts he could find the time to open one in the next few days. Cecilia offers to open a savings account for him, but Tony is unsure whether she is licensed to do that.
What should Cecilia tell Tony to reassure him that she can open a savings account on his behalf?

That licensed life insurance agents are authorized to sell bank products.

That no license is required to act as a deposit broker.

That she can open a savings account for him with no additional license because she delivered the life insurance policy to him beforehand.

That she can open a savings account for him with no additional license so long as the initial deposit is less than $100,000.

Q109. 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?

Amani’s Passions’ human resources department.

The group insurance provider selected by Amani.

The group plan sponsor.

The group broker.

Q110. (Eric, aged 28, currently works for an accounting firm. He still lives with his parents but is saving to buy a place of his own. Seven years ago, his grandparents gave him a significant cash gift following his college graduation. He deposited it into a segregated fund that invests in the natural resources sector.
However, real estate prices are rapidly increasing. Eric is concerned that if he does not buy a place in the next three to five years, it might become altogether unaffordable. In addition, the shares of the segregated fund he holds have seen a sharp drop in market value two years ago and they have not recovered yet.Eric questions his current choice of investment and asks his life insurance agent if he should switch to a different type of segregated fund.
What should the agent recommend?)

Switch to a bond fund.

Switch to a dividend fund.

Switch to a balanced fund.

Hold on to his natural resources fund.

Q111. Last year, Ezekiel purchased a $100,000 life insurance policy and named his wife Jolene as an irrevocable beneficiary of the policy. Last week, Ezekiel returned home early from a business trip and decided to surprise his wife instead of calling ahead. He arrived at midnight and not wanting to wake her, entered the house from the back door and left the lights off. Not expecting the intruder to be her husband, Jolene stabbed him in the heart with a kitchen knife. She quickly realized her mistake and called 911. Unfortunately, Ezekiel died in the hospital from his wounds. The police deemed Ezekiel’s death as accidental, and no charges were filed. Will the insurer pay the death benefit?

Yes, because Ezekiel’s death was accidental, Jolene did not intend to kill him.

Yes, because Jolene is the designated irrevocable beneficiary.

No, because he died within the first 2 years of purchasing the policy.

No, because Jolene caused his death.

Q112. Sebastian is a 44-year-old sales representative employed at Premier Aqua. He wants to take a year off to travel and relax. He has worked for the company for 25 years and accumulated $230,000 in a deferred profit sharing plan (DPSP). He would like to know if he can use some of the funds in his DPSP to fund his sabbatical.

Yes, he can withdraw the funds if he wants to.

Yes, he can withdraw the funds if he gets permission from his employer.

No, the funds can only be transferred to a life income fund (LIF).

No, the funds can only be transferred to a locked-in retirement account (LIRA).

Q113. Alexandre, a financial security advisor, recently left FinCode Inc. because of an unresolved dispute with the company. He is continuing his career as an independent advisor. This week, he has an appointment with a client who tells him that he met with another FinCode Inc. employee. However, that employee has a disciplinary record at the CSF for fraudulently copying a signature on a form. Since the client does not work in insurance and the information is public knowledge, Alexandre provides him with some clarification regarding the other advisor’s case. How can Alexandre encourage the client to do business with him without denigrating his competitor?

By telling the client to always check an advisor’s record with the CSF

By informing the client of his recent departure from FinCode Inc. owing to an unresolved dispute

By emphasizing his unique approach that sets him apart from his competitors

By talking about his experience with the other advisor when they worked for the same firm

Q114. Jasper is the sole breadwinner in his family. His wife Stephanie has chosen to dedicate all of her time to raising their 3 young children. Luckily, Jasper earns a monthly after-tax income of $25,000 working as a family doctor in the local clinic. Jasper meets with his insurance agent Odda to purchase a life insurance policy that will ensure his family will be able to continue toenjoy their current lifestyle in the event of his death. If his average tax rate is 40% and the investment return is 4%, how much life insurance should Jasper purchase based on the income replacement approach?

$625,000

$1,041,666

$7,500,000

$12,500,000

Q115. (Dominique invested $25,000 in fixed-rate GICs and $25,000 in bond segregated funds.
What type of risk do these investments involve?)

Market risk

Liquidity risk

Inflation risk

Industry risk

Q116. Samir applied for a life insurance policy 18 months ago. At the time of the application, he was employed as an accountant. Samir quit his accounting job 6 months ago to become a professional scuba diver.
Which of the following statements about Samir’s life insurance policy is CORRECT?

Samir must inform his insurer about his change of occupation within 6 months of the change.

Samir is not required to declare his change in occupation because the policy is less than 2 years old.

Regardless of whether Samir informs his insurer of his change in occupation, if he dies while scuba diving, he would not be covered.

Samir has no obligation to notify the insurer of his change of occupation regardless of how old the policy is.

Q117. Edna is a 62-year-old widow living in Quebec. She meets with Yolanda, her insurance agent. Ednaworked part-time her whole life as a seamstress and has no savings. Her husband Donald had been working as a greeter at the local box store until his death 2 months ago at the age of 67. Since his passing, Edna has been struggling financially. She would like to know which of the following organizations will immediately pay her a benefit?

Workers’ Compensation.

Old Age Security (OAS) allowance for surviving spouse.

Canada Pension Plan (CPP) survivor benefits.

She will not receive any benefit.

Q118. Barry, a life insurance agent, is meeting his client Diane who came to Canada 26 years ago. Diane is turning
60 years old and is considering purchasing a non-registered life annuity to supplement her retirement income.
Barry presented the quote to her and it was quickly accepted. During the application process, he recorded Diane’s contact information, used her Social Insurance card to ascertain her identity, and collected a cheque of $120,000 from a joint account. The names written on the cheque were Diane and Geoffrey. Diane explained that this was a joint account with her brother. What should Barry do to comply with FINTRAC’s guidelines regarding ascertaining identity?

Complete a third-party form because it involves her brother as well.

Report this transaction to FINTRAC because it exceeds $10,000.

Use another ID to ascertain her identity, because the Social Insurance card is prohibited.

Nothing, because there is no suspicious activity involved.

Q119. 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?

After the number of days required by law to contribute to his GRRSP.

At the end of his GRRSP contribution vesting period.

On the group plan’s renewal date.

At the end of a standard waiting period.

Under the LLQP Group Benefits and Group Savings curriculum, eligibility for group insurance benefits such as medical and dental coverage is typically subject to a waiting period, especially for new employees. This waiting period is a standard feature of group insurance contracts and is designed to manage risk for the insurer by preventing immediate claims shortly after employment begins.
A waiting period usually lasts between three and six months, depending on the terms of the group policy.
During this time, employees may complete enrolment forms, but coverage does not become effective until the waiting period has been satisfied. This principle applies regardless of whether the employee is otherwise eligible or intends to participate in other employer-sponsored plans.
The key distinction in this question is between group insurance benefits (medical and dental) and group savings plans such as a GRRSP. While Jack’s employer offers both, eligibility rules differ. A GRRSP often allows employees to begin contributing immediately upon employment, and employer matching contributions may vest over time. However, vesting schedules relate only to ownership of employer contributions, not to eligibility for participation in group insurance coverage. Therefore, Option B is incorrect.
Option A is also incorrect because there is no legislated waiting period tied to GRRSP contributions that governs eligibility for group insurance benefits. Option C is incorrect because group plan renewal dates apply to the employer’s contract with the insurer, not individual employee eligibility.
The LLQP study materials emphasize that group insurance eligibility is most commonly determined by a standard waiting period, which must be completed before coverage becomes effective. Once this period ends, Jack will become eligible to participate in the medical and dental plans.
Therefore, based on LLQP-approved group benefits rules, the correct and fully verified answer is Option D:
At the end of a standard waiting period.

Q120. Sidney is a professional hockey player that recently purchased a large house and wants to have life insurance coverage to cover the cost. He meets with his life insurance agent, Dave, to determine his need and complete an application. After completing a needs analysis, it is determined he should have $25,000,000 worth of life insurance. Dave makes an application to A-Z Life Insurance Co. for $25,000,000 of permanent life insurance.
The insurance company tells Dave that they have a maximum retention amount of $20,000,000 per policy.
What will happen in Sidney’s case?

He will have to apply for $20,000,000 worth of coverage.

He will have to apply for $20,000,000 worth of coverage with A-Z Life Insurance Co. and $5,000,000 with a reinsurance company.

He will have to apply for two different policies with A-Z Life Insurance Co.: Each less than
$20,000,000 but totaling $25,000,000

He will have to apply for $25,000,000 worth of coverage with A-Z Life Insurance Co. and they will find a reinsurance company to cover the $5,000,000.

Q121. Sergei meets with his insurance agent Nikita to purchase a $50,000 critical illness policy. Nikita explains that to apply for the policy Sergei would have to answer a series of personal questions about his finances, health, and lifestyle. Sergei is uncomfortable giving Nikita such detailed personal information. Nikita reassures Sergei by telling him that the insurer must follow stringent rules about how they can collect and handle this information. Which organization legislates privacy statutes pertaining to insurance companies?

Personal Information Protection and Electronic Documents Act (PIPEDA)

Privacy Act

Human rights legislation

Criminal Code

Q122. Gold, a financial security advisor, recently met with a wealthy client who needed tax advice. The client also wanted to draft a will and a mandate in case of incapacity. Eager to meet his client’s needs and make recommendations, he did not think it necessary to propose a meeting with the firm’s tax expert and notary.
Towards whom has Gold breached his duties and obligations?

The public

The client

Other representatives, firms, independent partnerships, insurers, and financial institutions

The profession

Q123. Maxine meets with Toshiko, an insurance agent for United Life, to purchase a $10 million universal life insurance policy. Once United Life reviews Maxine’s file, they agree to insure her for $3 million. United Life then contacts Extra Life Company, who agrees to insure Maxine for the additional $7 million. Toshiko asks his supervisor Bob how the death benefit will be paid to Maxine’s beneficiary when she dies.

United Life and Extra Life will each directly pay the beneficiary.

Extra Life will issue a cheque for $10 million.

United will issue a cheque for $10 million.

The full death benefit will be paid by Assuris.

IFSE Institute LLQP Exam Syllabus Topics:

Topic	Details
Topic 1	Ethics and Professional Practice: This part of the exam focuses on the legal and ethical responsibilities of life insurance professionals. It outlines the legal framework for life insurance in common law provinces and territories and stresses the importance of maintaining professionalism.
Topic 2	Segregated Funds and Annuities: Targeted at investment advisors and financial planners, this section evaluates their understanding of saving and investment strategies, which are essential for retirement and financial planning.
Topic 3	Accident and Sickness Insurance: Aimed at insurance professionals offering individual and group health insurance, this section emphasizes the importance of financial protection in the case of serious illness or injury.
Topic 4	Life Insurance: This section assesses the expertise of insurance professionals, including financial advisors and life insurance agents, in understanding the financial impact of death. It explains how life insurance helps address those financial needs and introduces various life insurance products, along with their features and benefits.