LLQP Practice Exam (Free): Sample Questions for Every Module

Why practice questions matter more than re-reading

Two candidates study the same number of hours. One spends 80% of the time re-reading the textbook. The other spends 60% on practice questions and reviews only the topics they got wrong. The second candidate passes more often. Active recall – testing yourself before you feel ready – moves information from short-term to long-term memory faster than passive review. The LLQP is a closed-book, timed exam. Practice is the only thing that simulates that pressure.

How to use the practice bank

1. Read one chapter or watch one module video.
2. Take 20 practice questions on that topic. Time yourself – 75 seconds per question.
3. Mark every question you got wrong AND every question you guessed correctly.
4. Re-read only those topics.
5. Repeat the 20 questions 48 hours later. You should now be at 85% or higher.
6. Two days before your exam, take a full 35-question timed mock in one sitting. No coffee breaks. No looking up answers. This is your real readiness check.

Module 1: Life Insurance (sample questions)

Module 1 is the largest and the hardest for most candidates. It covers life insurance products, underwriting, taxation, policy provisions, and the role of the advisor. Pass rates on Module 1 are typically 60% to 70% on first attempt, the lowest of the four modules.

Sample question 1.1: Underwriting

Sarah, age 38, applies for a $500,000 term life policy. She has well-controlled type 2 diabetes diagnosed three years ago. Her A1C is consistently below 7.0. Which underwriting classification is most likely?

• A. Preferred
• B. Standard
• C. Substandard / rated
• D. Declined

Answer: B. Well-controlled type 2 diabetes with stable A1C below 7.0 in a younger applicant is typically accepted at standard rates by most Canadian carriers. A rating is reserved for poorly controlled or complicated cases. Preferred would require above-average health markers and is rare with any diabetes diagnosis.

Sample question 1.2: Taxation

A whole life policy with a $200,000 death benefit and a $40,000 cash surrender value is owned personally. The insured dies. How is the death benefit taxed?

• A. The full $200,000 is taxable as ordinary income
• B. Only the gain above ACB is taxable
• C. The full death benefit is received tax-free by the named beneficiary
• D. 50% of the death benefit is taxable as a capital gain

Answer: C. Life insurance death benefits in Canada are received tax-free by a named beneficiary. This is one of the most-tested concepts on Module 1. Note that gains on a cash surrender during the insured’s lifetime are taxable – but that is a surrender, not a death.

Sample question 1.3: Policy provisions

A policyholder discovers their term policy has a 10-day right to examine. What does this mean?

• A. They have 10 days to make their first premium payment
• B. They have 10 days to cancel the policy and receive a full refund
• C. The insurance company has 10 days to issue the policy
• D. The beneficiary has 10 days to claim the proceeds

Answer: B. The right to examine, sometimes called a free look, is a mandatory consumer protection in Canada. Period varies by province (10 to 20 days) but the concept is the same.

Module 2: Accident & Sickness (sample questions)

Sample question 2.1: Disability income

A 42-year-old self-employed plumber wants disability insurance. Which definition of disability typically provides the strongest protection?

• A. Any occupation
• B. Modified any occupation
• C. Regular occupation
• D. Own occupation

Answer: D. Own occupation pays benefits if the insured cannot perform the duties of their specific occupation, even if they could work in another field. Any occupation is the weakest definition, it requires the insured to be unable to perform any occupation they are reasonably suited to.

Sample question 2.2: Critical illness

A standard Canadian critical illness policy must cover at least how many core conditions to qualify for the CLHIA benchmark?

• A. 3
• B. 4
• C. 6
• D. 25

Answer: B. The Canadian Life and Health Insurance Association defines four core conditions: cancer, heart attack, stroke, and coronary artery bypass surgery. Most policies cover 20 to 25 conditions, but only four are required for the CLHIA standard.

Module 3: Segregated Funds & Annuities (sample questions)

Sample question 3.1: Maturity guarantees

A segregated fund contract has a 100/75 guarantee. The deposit is $100,000. At the maturity date, the market value is $70,000. How much does the contract pay?

• A. $70,000
• B. $75,000
• C. $85,000
• D. $100,000

Answer: B. A 100/75 contract guarantees 100% on death and 75% on maturity. 75% of $100,000 is $75,000 (the floor). The market value of $70,000 is below the floor, so the contract pays the guaranteed $75,000.

Sample question 3.2: Creditor protection

Which of the following is the strongest reason a self-employed contractor might choose a segregated fund over a mutual fund?

• A. Lower MER
• B. Higher historical returns
• C. Potential creditor protection and named-beneficiary bypass of probate
• D. Guaranteed monthly income

Answer: C. Segregated funds are insurance contracts. With a properly named beneficiary, especially a family-class beneficiary, they can offer creditor protection during the owner’s lifetime and bypass the estate on death. MERs are generally higher than mutual funds, not lower.

Module 4: Ethics & Professional Practice (sample questions)

Sample question 4.1: Suitability

An advisor recommends a 67-year-old retiree with no dependants liquidate a balanced portfolio to fund a large permanent life insurance policy. The retiree has no estate planning need and modest income. This recommendation is most likely:

• A. Acceptable if the client signs a suitability waiver
• B. Acceptable if the commission is disclosed
• C. A breach of the advisor’s duty to recommend suitable products
• D. Acceptable if the advisor is licensed in life insurance only

Answer: C. Suitability is the foundation of professional practice. Without a clear insurance need, recommending a large permanent policy funded by liquidating retirement assets is unsuitable regardless of disclosure or waiver. Suitability obligations cannot be waived by the client.

Sample question 4.2: Privacy (PIPEDA)

An advisor wants to share client medical history with a third-party financial planner who is preparing the same client’s estate plan. Under PIPEDA, this is permitted only when:

• A. Both professionals are licensed
• B. The information is shared verbally rather than in writing
• C. The client provides express, informed consent
• D. The third party signs an NDA

Answer: C. PIPEDA requires express informed consent for sharing personal health information, regardless of the professional status of the recipient.

Free full-length mock exam

Once you have worked through the chapter-by-chapter banks, you need one full-length timed mock to know if you are ready. Our free 35-question mock simulates a real Module 1 sitting: 75 seconds per question, no breaks, no looking up answers. The system grades you instantly and shows you exactly which sub-topics you missed.

Take the Free Mock Exam → Free Mock Exam.

If you score 75% or higher on the timed mock with no aids, you are very likely to pass the real exam on first try. Below 65%: give yourself another two weeks of focused review on your weak topics before booking.

Other free study tools that actually work

• Flashcards: make your own. Apps like Anki are free. Building the cards is half the learning.
• Voice memos: record yourself explaining a concept in your own words. If you cannot explain it cleanly in 60 seconds, you do not know it yet.
• Whiteboard the four modules: draw the structure of each module from memory once a week. Gaps in the drawing are gaps in your knowledge.
• Study group: two or three serious candidates is the sweet spot. More than four becomes a chat.