LLQP Exam Dumps : Life License Qualification Program (LLQP)

Comprehensive and Detailed Explanation:

“Any occupation” disability insurance pays benefits only if the insured cannot work inanyjob for which they are reasonably suited by education, training, or experience. For a dentist like Pierre-Marc, whose substantial income relies on specialized skills, this is restrictive. “Own occupation” coverage pays if he cannot perform his specific job (dentistry), even if he can work elsewhere (Chapter 2:Insurance to Protect Income).

Option A: Incorrect; “any occupation” is less flexible, not more, and doesn’t pay if he can work elsewhere, regardless of choice.

Option B: Incorrect; benefits stop if he can work elsewhere, whether he chooses to or not.

Option C: Incorrect; an AD&D rider addresses specific losses, not income replacement adequacy.

Option D: Correct; “own occupation” suits his high-income, specialized profession, ensuring benefits if he can’t practice dentistry, even if he takes another job.

Twisting involves persuading a client to replace an existing insurance policy with a new one from a different insurer, often to earn a commission, without a clear benefit to the client. Emeka’s action of convincing Mosi to cancel his sufficient coverage with Starlight Insurance to purchase a new policy with Sunrise Insurance, primarily for her commission, constitutes twisting​. This practice isgenerally considered unethical, as it may not be in the best interest of the client and can lead to unnecessary costs and potential coverage gaps​.

Churning, on the other hand, usually involves replacing policies within the same company to generate additional commissions, which does not apply here​.

Comprehensive and Detailed In-Depth Explanation: Under the Civil Code of Quebec (Article 2415), a policyholder (or subscriber) is the entity that owns and pays for an insurance or annuity contract, which can be an individual or a legal person like a corporation. Xtra, as a company, can use its retained earnings (unregistered capital) to fund an annuity contract and be designated as the policyholder, making option D correct. Option A is false, as legal persons can own contracts (e.g., group insurance). Option B’s requirement of a registered plan is incorrect—annuities can be funded with non-registered funds. Option C introduces a “subrogated annuitant,” a misnomer here, as the annuitant is the person receiving payments, not a decision-maker, and no such requirement exists. The LLQP and Ethics manual confirm that corporations can be policyholders for business purposes, like key person coverage or investments.