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. An indexed annuity links its growth to a market index but typically includes which protective feature? → A floor that prevents negative returns
2. In needs analysis, what does the term 'survivor income needs' refer to? → The ongoing income required by dependents after the insured's death
3. 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
4. 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
5. Which type of permanent life insurance policy has a cash value that grows based on the performance of investment sub-accounts chosen by the policyholder? → Variable life insurance
6. A joint and survivor annuity primarily benefits: → Two individuals who need income to continue after the first annuitant dies
7. Why are practice exams important during preparation? → To simulate the test environment and improve time management
8. A 'graded benefit' whole life policy typically means: → The full death benefit is not paid if death occurs within the first few policy years
9. 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
10. Which rider allows a policyowner to purchase additional life insurance at specified future dates without providing evidence of insurability? → Guaranteed insurability rider
11. A critical illness insurance policy typically pays benefits: → As a lump sum upon diagnosis of a covered condition
12. 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
13. What does the 'convertibility' feature in a term life insurance policy allow? → Converting the term policy to a permanent policy without providing medical evidence
14. Which entity is primarily responsible for investigating complaints against licensed insurance agents? → The state Department of Insurance
15. Which type of life insurance product is most commonly used to provide pure death benefit protection for a specific debt obligation like a mortgage? → Decreasing term insurance
16. Under LLQP principles, which of the following best describes the 'reset' option in a segregated fund? → Locks in a higher market value as the new guarantee base on a specified date
17. Which of the following is typically INCLUDED in a comprehensive life insurance needs analysis? → Outstanding mortgage and debt obligations
18. 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
19. What is the minimum age requirement to apply for a life insurance license in most states? → 18 years
20. Which of the following best describes how employer-paid group term life insurance premiums are treated for an employee whose coverage exceeds $50,000? → Only premiums for coverage above $50,000 are included in gross income as imputed income
21. How often must an LLQP license be renewed in most Canadian provinces? → Every two years
22. 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
23. An equity-indexed annuity (EIA) credits interest based on: → The performance of a specific stock market index, subject to a cap and floor
24. An agent who sells insurance without a valid license is subject to which of the following consequences? → Criminal charges and civil penalties
25. An agent completes a CE course but loses their certificate of completion. What is the best course of action? → Contact the CE provider to obtain a duplicate certificate
26. 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
27. When studying for the LLQP, which learning strategy best addresses the ethical decision-making scenarios commonly tested on the exam? → Practicing case-based scenarios that apply ethical principles to client situations
28. A life insurance agent wants to add a long-term care insurance line to their license. How does CE factor into this process? → Most states require specific long-term care CE before the LTC line can be added
29. Which of the following is considered an 'asset' when calculating net insurance needs for a client? → Existing life insurance coverage and investment account balances
30. 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