IFSE Institute LLQP Quiz 1 Topic 2 Questions 1-5

Question: 1

Juniper, 69, suffered a stroke a few weeks ago which left her partially paralyzed and has severely reduced her mobility. Since the stroke, she is unable to leave her home. She benefits from regular visits from nurses, massage therapists, and housekeepers. Juniper wants to claim the services on her long-term care (LTC) insurance policy and would like to know how the claim will be processed and paid.

Which of the following answers is CORRECT?

AThe insurer will pay the nurse and the massage therapist directly and Juniper will have to pay the housekeeper out of pocket.

BJuniper will have to pay for all of the services first and then submit the receipts for all qualifying expenses to her insurer for reimbursement under the home care clause of her LTC policy.

CThe insurer will pay for all of the services directly.

DJuniper will have to pay for all the services, but she could only claim for reimbursement of the costs of the nursing care, under the home care clause of her LTC policy.

Show Answer

Question: 2

On February 5, Ayla started working at Larson Group Inc. as an administrative assistant. Larson Group offers all employees a group health, dental and life insurance plan that commences after a 3-month waiting period. On April 7, Ayla felt ill and drove herself to the hospital. The doctor diagnosed two clogged arteries and performed an emergency surgery. Ayla was unable to work for 2 months, then died of complications on June 9. Will the group insurance plan pay the death benefit?

AYes, because she died of natural causes.

BYes, because her group life coverage started on May 5.

CNo, because Ayla was not actively at work when the coverage started.

DNo, because Ayla did not provide the insurer with any proof of insurability.

Show Answer

Question: 3

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?

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

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

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

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

Show Answer

Question: 4

Trisha is new to the insurance industry and wants to understand the primary responsibility of the Canadian Insurance Services Regulatory Organizations (CISRO). Which of the following statements about CISRO is CORRECT?

ATo administer the regulatory system, applicable to insurance intermediaries.

BTo administer the enforcement of the federal Personal Information Protection and Electronic Documents Act (PIPEDA).

CTo help protect the integrity of the Canadian financial system.

DTo provide clients with assistance to their enquiries and complaints pertaining to Canadian life and health insurance products and services.

Show Answer

Question: 5

Goran and Tanja married two years ago. Last year, they purchased and moved into a three-bedroom house in the suburbs. The current balance on their mortgage is $655,000. They meet with Ljubomir, an insurance agent, to purchase a joint term life insurance policy to cover the mortgage. When Ljubomir asks about their existing coverage, Goran shares that he has none. Tanja explains that she owns a universal life (UL) policy with a level death benefit of $50,000 and a cash surrender value (CSV) of $5,000, purchased 6 years ago from another agent. Tanja would like to surrender her UL policy and use the $5,000 CSV to pay for a trip to Europe. What additional information about Tanja's UL policy does Ljubomir need to collect?

AThe investment vehicle of the policy's CSV.

BThe adjusted cost basis (ACB) and surrender charges of the policy's CSV.

CThe dividends and paid-up additions.

DThe premiums upon renewal.

Show Answer

IFSE Institute LLQP Quiz:1 Topic:2 Questions:1-5