LLQP Practice Test

LLQP Life Contracts, Underwriting & Beneficiaries Practice Questions

Life Contracts, Underwriting & Beneficiaries 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 2026-11-10 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. 1. In a common-law province, a person has an insurable interest in their own life and in the life of:

   • A.A public figure they greatly admire
   • B.A person they depend on for support
   • C.A neighbour they help out each week
   • D.A close friend from their school days

   Answer: B. Provincial Insurance Acts list insurable interests, including a person on whom the owner depends for support or education. Without one, the contract is void unless the life insured consents in writing.

2. 2. Maya wants to insure her business partner's life but the partnership is not listed as an insurable interest. The contract is valid if:

   • A.The insurer approves the medical
   • B.Maya is named as beneficiary
   • C.Maya pays the first premium
   • D.The partner consents in writing

   Answer: D. The Insurance Acts let a contract stand without a listed insurable interest when the person whose life is insured consents in writing.

3. 3. Eighteen months after issue, the insurer learns the insured did not disclose heart treatment she had before applying. The policy has been in force under two years, so the insurer:

   • A.Can void it for material non-disclosure
   • B.Can void it only if it proves fraud
   • C.Must keep it, as the policy was issued
   • D.Can only lower the face amount by half

   Answer: A. Within the first two years, a material misrepresentation or non-disclosure lets the insurer void the contract, even without fraud. After two years, only fraud does.

4. 4. Which can make a life policy voidable even after it has been in force for five years?

   • A.A change of occupation
   • B.A move to another province
   • C.Fraudulent misrepresentation
   • D.An honest error in the medical history

   Answer: C. The two-year incontestability rule does not protect fraud. A later change of job or address is not a misrepresentation at all.

5. 5. An insured understated his age by three years. At death, the insurer will:

   • A.Pay the full face amount as written
   • B.Refund the premiums paid, with no benefit
   • C.Pay the amount the premium buys at true age
   • D.Refuse to pay the claim in full

   Answer: C. Misstatement of age does not void the contract; the benefit is adjusted to the amount the premium paid would have bought at the correct age.

6. 6. Reinstating a lapsed life policy has one drawback for the owner:

   • A.The contestable period starts again
   • B.The beneficiary must be changed
   • C.Premiums are waived for a year
   • D.The policy loses all its cash value

   Answer: A. On reinstatement, statements in the reinstatement application can be contested for a new two-year period. The policy keeps its values once arrears are paid.

7. 7. The grace period in a life policy is the time after a premium due date during which:

   • A.No claim can be paid at all
   • B.The owner may cancel for a refund
   • C.The insurer can raise the premium
   • D.Coverage stays in force unpaid

   Answer: D. The grace period (at least 30 days) keeps the policy in force while a premium is late. If the insured dies then, the insurer pays the claim less the overdue premium.

8. 8. An owner wants a beneficiary designation that cannot be changed without the beneficiary's consent. In a common-law province, this is done by:

   • A.Making the beneficiary a contingent owner
   • B.Filing an irrevocable designation
   • C.Naming the beneficiary in a will
   • D.Telling the agent verbally

   Answer: B. A designation is revocable unless the owner files a declaration with the insurer making it irrevocable. The irrevocable beneficiary must then consent to changes.

9. 9. In Quebec, a married or civil union spouse named as beneficiary is:

   • A.Irrevocable only if they are a minor
   • B.Irrevocable unless stated otherwise
   • C.Always revocable by the owner
   • D.Revocable after two years in force

   Answer: B. Under the Civil Code of Quebec, the designation of the married or civil union spouse is irrevocable unless the policyholder stipulates otherwise. Common-law provinces start from revocable.

10. 10. Which beneficiary group gives a policy creditor protection in common-law provinces?

    • A.The owner's estate or executor
    • B.A business partner of the owner
    • C.Any friend named in the owner's will
    • D.Spouse, child, grandchild or parent

    Answer: D. Naming a family-class beneficiary (spouse, child, grandchild or parent of the life insured) generally protects the policy from the owner's creditors. Naming the estate removes that protection.