LLQP Exam Dumps : Life License Qualification Program (LLQP)

Since Arthur is the named beneficiary on Mercedes' life insurance policy, the death benefit will be payable to him directly. Under LLQP provisions, life insurance proceeds designated to a minor beneficiary are generally paid into a trust or managed by a legal guardian until the minor reaches the age of majority​.

In this case, because Mercedes died intestate (without a will), Arthur would still receive the proceeds of the life insurance policy as the sole named beneficiary. However, since he is a minor, the Director of Youth Protection or a legal guardian may be appointed to manage the funds until Arthur becomes of age​.

Comprehensive and Detailed Explanation:

Rene’s salary is $70,000/year, and his group disability insurance provides 60% of this, or $42,000/year ($70,000 × 0.60), equating to $3,500/month ($42,000 ÷ 12). His monthly expenses are $3,500, so this just covers his needs if disabled. However, the LLQP stresses considering unexpected expenses (e.g., medical costs, inflation) beyond basic living expenses (Chapter 2:Insurance to Protect Income).

RRSP contribution: $1,000/month, savings: $45,000 (registered) + $10,000 (non-registered).

40% of salary = $70,000 × 0.40 = $28,000/year or $2,333/month.

Option A: Incorrect; $3,500/month matches expenses but leaves no buffer for unforeseen costs.

Option B: Incorrect; RRSPs are for retirement, not disability liquidity, and don’t enhanceimmediate protection.

Option C: $1,000/month additional coverage is arbitrary and insufficient for 40% of salary; it doesn’t align with needs analysis.

Option D: Correct; 40% of salary ($2,333/month) on top of $3,500 provides $5,833/month, offering a safety net for unexpected expenses, consistent with LLQP’s holistic protection approach (Chapter 6:Client Profile).

Comprehensive and Detailed Explanation:

The 10-day “free look” period starts upon delivery (August 10); Karl returned it August 15 (within 5 days), entitling him to a refund (Chapter 7:Insurance Recommendation, Contract, and Service Needs).

Option A: Correct; within 10 days.

Option B-D: Incorrect; refund tied to delivery, not approval or application.