Free LLQP Exam Braindumps
Life License Qualification Program (LLQP) Questions 136–140 (page: 29)

Updated On: 23-Feb-2026

Dora meets with the following clients, each of whom fills out a disability insurance application:
· Scott, a ski instructor who skydives every weekend in the summer, · Lamar, a librarian who drives to work daily and spends his free time collecting stamps and watching nature shows,
· Timothy, an administrative assistant who walks 30 minutes each way to and from work, and · Yashar, an accountant who participates in 5 online chess competitions a week and studies chess in his spare time.

All else being equal, which of Dora's clients will qualify for the most favorable insurance premium?

  1. Scott
  2. Lamar
  3. Timothy
  4. Yashar

Answer(s): B



Vintage Style Inc. is a clothing company with 20 employees participating in its group retirement and group insurance plan. Premiums for the group insurance plan are calculated on previous claims. If the benefits paid are lower than anticipated, the premiums may decrease at renewal. However, if the benefits paid are higher than anticipated, the premiums payable may be subject to an increase.
Which of the following funding formulas does Vintage use in its group insurance plan?

  1. Non-refund accounting.
  2. Refund accounting.
  3. Administrative services only.
  4. Claims experience.

Answer(s): B



Marsha and Alexis are equal partners in an advertising firm. They meet with Jose, an insurance agent, and Horacio, their lawyer, because they would like to protect themselves if one of them becomes disabled and unable to work for an extended period of time. At the end of their meeting, they agree to purchase $500,000 disability insurance policies on each other by each of them paying premiums.

What type of agreement do Marsha and Alexis have?

  1. Cross-purchase agreement
  2. Key person insurance
  3. Entity purchase agreement
  4. Business loan protection disability insurance

Answer(s): A



Kiril is the sole proprietor of a small gym with five employees. His sales manager, Antoine, is a former Olympic athlete, responsible for generating close to 50% of all revenues for the gym. Thanks to Antoine's popular social media presence, the gym is profitable and growing rapidly. However, Kiril has concerns about the future profitability of his gym should Antoine become ill or injured since the other employees are not local celebrities and would not be able to replace Antoine's contribution to the business.
Which of the following types of insurance policy would protect the gym if Antoine were unable to work?

  1. Business loan protection disability insurance on Antoine.
  2. Disability buyout insurance.
  3. Key person disability insurance on Antoine.
  4. Disability business overhead expense insurance on Antoine.

Answer(s): C



Larry, an insurance agent, meets with Ethan, a freelance photographer, to review his insurance needs. Larry tells Ethan that he wants to collect all pertinent financial information to prepare a net worth statement for Ethan.
Why does Larry want to prepare Ethan's net worth statement?

  1. To have enough information to identify where Ethan spends his money.
  2. To determine Ethan's various sources of income.
  3. To determine how much Ethan can spend on accident and sickness insurance premiums.
  4. To determine if Ethan has enough resources to cover medical expenses if he had a medical emergency.

Answer(s): D



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