LLQP Group Benefits, Government Plans & Tax Practice Questions
Group Benefits, Government Plans & Tax makes up 4 of every 50 questions on a Tigertest LLQP practice test. Here are 10 of the 16 questions on it, each with the answer and the reason.
Updated by the Tigertest team. Based on the harmonized LLQP's four modules, Canadian law and CCIR/CISRO guidance as of November 2026. Original questions; 50 per test, mixing the modules in proportion. Not affiliated with CISRO, any provincial regulator or the AMF.
1. An employer pays the whole premium for an employee's group term life insurance. The premium is:
- A.Taxed only when a death claim is paid
- B.A taxable benefit to the employee
- C.Tax-free to the employee
- D.Deductible by the employee
Answer: B. Employer-paid group term life premiums are a taxable benefit included in the employee's income. Death benefits remain tax-free.
2. An employer pays the whole premium for a group long-term disability plan. Benefits paid to a disabled employee are:
- A.Half taxable
- B.Taxed as capital gains
- C.Tax-free
- D.Taxable income
Answer: D. Where the employer contributes to a wage-loss replacement plan, benefits are taxable, reduced by any premiums the employee paid.
3. Employees pay the full premium for their group LTD plan with after-tax money. Their benefits are:
- A.Tax-free
- B.Taxed when they return to work
- C.Fully taxable
- D.Taxable above a limit
Answer: A. When the employee pays all the premium, benefits from the wage-loss plan are not taxable. Some groups choose this to make benefits tax-free.
4. Outside Quebec, employer-paid group health and dental premiums are:
- A.Taxed as the employee's capital gain
- B.Deductible by the employee
- C.Not a taxable benefit
- D.A taxable benefit federally
Answer: C. Private health services plan premiums paid by the employer are not a taxable benefit federally. Quebec taxes them as a provincial benefit, so the rule varies in Quebec.
5. When an employee leaves a job, the group life conversion privilege usually lets them buy individual coverage without evidence within:
- A.6 months
- B.1 year
- C.31 days
- D.7 days
Answer: C. Group contracts typically give 31 days after coverage ends to convert to an individual policy without proof of insurability, often up to a set maximum.
6. A group plan requires new hires to work three months before coverage starts. This is the:
- A.Probationary period
- B.Grace period
- C.Survival period
- D.Elimination period rule
Answer: A. The probationary (waiting) period is the time an employee must be employed before becoming eligible. The elimination period applies to a disability claim.
7. An employee applies to join the group plan 60 days after becoming eligible. The insurer will usually require:
- A.A waiting period of two years
- B.No action at all
- C.A higher deductible
- D.Evidence of insurability
Answer: D. Late applicants, after the enrolment window (often 31 days), must give evidence of insurability so people do not join only when they expect claims.
8. EI sickness benefits are paid for up to:
- A.8 weeks
- B.26 weeks
- C.15 weeks
- D.52 weeks
Answer: B. Since December 18, 2022, Employment Insurance sickness benefits can be paid for up to 26 weeks, after a one-week waiting period.
9. EI sickness benefits generally replace about what share of insurable earnings, up to a maximum?
- A.85%
- B.55%
- C.70%
- D.40%
Answer: B. The basic EI benefit rate is 55% of average insurable weekly earnings, up to a yearly maximum.
10. To qualify for a CPP disability benefit, a person's disability must be:
- A.Caused by work
- B.Expected to last 90 days
- C.Partial and temporary
- D.Severe and prolonged
Answer: D. The Canada Pension Plan requires a severe disability (unable to work regularly at any substantially gainful job) that is prolonged (long-term or likely to result in death), plus enough contributions.
Practice all 16 group benefits, government plans & tax questions, and the rest of the 200-question bank, in the free LLQP training sets. Questions you miss come back until you have mastered them.
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