Insurance Product Types Flashcards
7 cards from real LLQP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Insurance Product Types flashcards as text
Which annuity payout option provides the highest monthly income but stops payments upon the annuitant's death with no further benefit to beneficiaries?
Answer: Straight life annuity
A straight life (life only) annuity pays the highest monthly benefit because payments cease at the annuitant's death with no refund or continuation to beneficiaries.
Accidental death and dismemberment (AD&D) insurance pays the principal sum for:
Answer: Death or specified injuries caused solely by accident
AD&D insurance pays the principal sum only for accidental death or specified losses (such as limbs or eyesight) caused solely by accident.
A group life insurance plan typically uses which underwriting approach?
Answer: Master policy underwriting based on group characteristics
Group life insurance uses a master policy approach where the group as a whole is underwritten, avoiding individual medical exams for most members.
The primary purpose of credit life insurance is to:
Answer: Pay off a loan balance if the borrower dies before the debt is repaid
Credit life insurance pays the outstanding loan balance to the lender if the borrower dies, protecting both the borrower's estate and the creditor.
A deferred annuity differs from an immediate annuity because the deferred annuity:
Answer: Has an accumulation phase before income payments begin
A deferred annuity has an accumulation phase where funds grow on a tax-deferred basis before the payout phase begins.
Which of the following best describes a modified premium whole life policy?
Answer: Premiums are lower in the early years and higher in later years
A modified premium whole life policy charges lower premiums in the early years (typically the first 3-5 years) and higher premiums thereafter, making it more affordable initially.
Which life insurance policy type builds cash value at a guaranteed rate and also pays non-guaranteed dividends?
Answer: Participating whole life insurance
Participating whole life insurance guarantees cash value growth at a set rate and may pay dividends when the insurer's actual experience is better than expected.
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Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy
- fcnb.ca — Test delivery, retake policy, score validity · verified Oct 2026
- insurancecouncilofbc.com — Fees, retake fee, eligibility, exam format, time limit, passing score, retake policy, score release, score validity, test delivery · verified Oct 2026
- fsrao.ca — Test delivery, eligibility, retake policy, score validity, fees, exam information · verified Oct 2026