LLQP Exam Dumps : Life License Qualification Program (LLQP)

Akeno’s greatest financial risk upon death isIncome tax, primarily due to the capital gains taxes that would be incurred on the disposition of his non-registered investment assets and potentially his real estate properties. With significant investments and property appreciation, there may be substantial tax liabilities upon his death. Other options, such as loss of income and debt repayment, are less relevant given his financial stability and the low outstanding debt on the cottage mortgage. Estate creation is not a concern as he has sufficient assets​.

Since Gregory and Vanessa bought a joint life annuity without mention of a guarantee period, the annuity would cease payments upon the death of the second annuitant. Therefore, no death claim can be made on the annuity.

Exact Extract:

"In a joint life annuity with no guarantee period, payments stop upon the death of the second annuitant. No death benefit is payable."

(Reference: Segfunds-E313-2020-12-7ED, Chapter 3.2.2.2 Joint Life Contract【53:3†Segfunds-E313-2020-12-7ED.pdf**)

Since Borealis Fit is a relatively new business with no prior experience data for group insurance, the insurer is likely to use manual rating. This method involves determining premiums based on standard rates for similar groups rather than the specific experience of the group itself. Manual rating is commonly applied when there is no claims history or insufficient data to support a credibility or experience rating. This aligns with LLQP guidelines, which outline manual rating as a default approach for groups without established claims experience​.