LLQP Cheat Sheet 2026

The 30 highest-yield LLQP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. In needs analysis, what does the term 'survivor income needs' refer to? → The ongoing income required by dependents after the insured's death
2. What is the tax treatment of annuity payments received from a registered plan (RRSP or RRIF)? → They are fully taxable as income in the year received
3. What is a 'flex benefits' or 'flexible benefits' plan in the Canadian group benefits context? → A plan where employees can choose their own benefit options from a menu of choices
4. Why are practice exams important during preparation? → To simulate the test environment and improve time management
5. How are segregated fund death benefit proceeds treated for estate planning purposes in Canada? → They can bypass probate and pass directly to the named beneficiary
6. What happens to a candidate's exam results if they pass some LLQP modules but fail others? → Passed modules are typically credited and only failed modules need to be rewritten
7. What does the 'convertibility' feature in a term life insurance policy allow? → Converting the term policy to a permanent policy without providing medical evidence
8. Which of the following is typically INCLUDED in a comprehensive life insurance needs analysis? → Outstanding mortgage and debt obligations
9. What is the typical waiting period before a new employee becomes eligible for group benefits in Canada? → Usually 3 months, though it varies by employer
10. What is the minimum age requirement to apply for a life insurance license in most states? → 18 years
11. How often must an LLQP license be renewed in most Canadian provinces? → Every two years
12. How many attempts are typically allowed for the LLQP examination before a candidate must retake the course? → Two to three attempts depending on the province
13. What is the primary consequence for a licensed agent who fails to complete their continuing education requirements by the deadline? → Automatic license suspension or non-renewal
14. Which of the following is considered an 'asset' when calculating net insurance needs for a client? → Existing life insurance coverage and investment account balances
15. What are the tax implications of a policy loan from a life insurance policy in Canada? → Policy loans may trigger a taxable disposition if the loan amount exceeds the policy's ACB
16. Which entity typically oversees the licensing of life insurance agents? → State insurance department
17. Which provincial body typically regulates accident and sickness insurance products in Canada? → The provincial insurance regulator or superintendent of insurance
18. When analyzing estate conservation needs, a financial advisor is primarily concerned with: → Ensuring sufficient assets remain after taxes and settlement costs to transfer to heirs
19. What distinguishes a 'compliance' CE credit from a general elective CE credit? → Compliance credits cover regulatory and legal topics required by the regulator
20. How long must a licensed insurance agent typically retain records of completed continuing education activities? → At least 5 years or as specified by the provincial regulator
21. Which core module of the LLQP curriculum focuses on individual and group coverage for disability and health-related risks? → Accident and Sickness Insurance module
22. Are there age requirements for obtaining an LLQP license in Canada? → Applicants must be at least 18 years of age in most provinces
23. Why is the claims process module important for future agents? → To assist clients and ensure smooth handling
24. Which of the following is typically required to obtain a life insurance license? → Passing a licensing exam
25. A client with no financial dependents and substantial investment assets would MOST likely have which insurance need prioritized in their needs analysis? → Estate planning and tax-efficient wealth transfer to beneficiaries
26. What is the benefit of obtaining a professional designation such as CLU or CHS in relation to LLQP continuing education? → Courses taken toward the designation may count as CE credits
27. What obligation does an agent have under anti-money laundering (AML) regulations when selling insurance products in Canada? → Verify client identity and report suspicious transactions as required by FINTRAC
28. In Canadian accident and sickness insurance, what does 'subrogation' refer to? → The insurer's right to recover benefits paid from a third party responsible for the loss
29. What is the difference between a 'life insurance agent' license and a 'life insurance broker' license in Canada? → An agent represents one or more insurers while a broker represents the client's interests
30. What emphasis does the LLQP curriculum place on consumer protection? → Consumer protection principles are integrated throughout all modules as a core theme