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The rules, periods and numbers the LLQP leans on, on one page, for all four modules. Statute rules are quoted from British Columbia's Insurance Act; the other common-law provinces have the same uniform life and A&S provisions, though section numbers differ. Figures are as at 12 Oct 2026; several are indexed every January, so check the source when a figure matters to you.
LLQP Practice is an independent study aid. It is not affiliated with or endorsed by CISRO, CCIR, any provincial insurance regulator or any LLQP course provider. All practice questions are original; they are not real or past exam questions. A revision aid, not legal or tax advice and not an accredited LLQP course.
Know the numbers? Now apply them.
Most questions put these rules into a client situation.
| Rule | What to remember | Source |
|---|---|---|
| LLQP modules | Life, A&S, Seg Funds: 35 questions (30 scored); Ethics 25 (20 scored); 75 min each; 60% to pass each | CISRO LLQP Curriculum (May 2015); Insurance Council of BC |
| Contestability (life) | After 2 years in force during the insured's lifetime, non-disclosure or misrepresentation cannot void the contract, unless there was fraud | Insurance Act (BC), RSBC 2012, c. 1, s. 52(2) |
| Misstatement of age (life) | Benefit adjusted to what the premium would buy at the correct age | Insurance Act (BC), RSBC 2012, c. 1, s. 54(2) |
| Grace period (life) | 30 days (28 for industrial contracts) or longer if the contract says so; a death in the grace period is paid, less the premium | Insurance Act (BC), RSBC 2012, c. 1, s. 50(2)-(3) |
| Reinstatement (life) | Within 30 days after the grace period by paying the premium (insured alive); within 2 years with evidence of insurability and overdue premiums with interest | Insurance Act (BC), RSBC 2012, c. 1, s. 57(2)-(3) |
| Minors | Age 16 or older can make an enforceable insurance contract; a parent consents to insurance on a child under 16 | Insurance Act (BC), RSBC 2012, c. 1, ss. 45(3), 72 |
| Irrevocable beneficiary | Cannot be changed without the beneficiary's consent; money is beyond the insured's creditors and estate | Insurance Act (BC), RSBC 2012, c. 1, s. 60(1) |
| Creditor protection | Designation of a spouse, child, grandchild or parent protects the policy and proceeds from seizure | Insurance Act (BC), RSBC 2012, c. 1, s. 65(2) |
| Death claim | Insurer pays within 30 days after receiving sufficient proof | Insurance Act (BC), RSBC 2012, c. 1, s. 73 |
| A&S claims | Written notice within 30 days; proof within 90 days; outer limit 1 year if not reasonably possible earlier | Insurance Act (BC), RSBC 2012, c. 1, s. 101, Statutory Condition 5 |
| A&S grace period | 30 days, or longer if the contract says so | Insurance Act (BC), RSBC 2012, c. 1, s. 106(3) |
| A&S contestability | 2 years, but not for a claim for a loss or disability that began within the first 2 years | Insurance Act (BC), RSBC 2012, c. 1, s. 112 |
| RRSP (2026) | 18% of prior-year earned income up to $33,810 | CRA limits table (modified 1 Dec 2025) |
| TFSA (2026) | $7,000 annual limit (same in 2024 and 2025) | CRA limits table |
| RRIF minimum | Value on 1 January x factor: 1/(90 - age) under 71; 0.0528 at 71 | Income Tax Regulations s. 7308(4) |
| Capital gains | One half of a capital gain is taxable | Income Tax Act s. 38(a) |
| OAS recovery tax | 15% of net income above $95,323 (2026 income year) | Canada.ca, OAS recovery tax (modified 29 Sep 2026) |
| EI sickness | Up to 26 weeks at 55% of insurable earnings, max $729 a week (2026) | Canada.ca, EI sickness benefits |
| YMPE (2026) | $74,600 (YAMPE $85,000) | CRA limits table |
| Seg fund guarantees | Maturity guarantee at least 75% of deposits; rescission within 2 business days of receiving the confirmation (deemed received 5 business days after mailing) | CLHIA Guideline G2, as applied in insurers' information folders |
| Assuris (seg funds) | Guaranteed values protected up to $100,000 or 90%, whichever is higher | assuris.ca |
How an agent works out how much life insurance a family needs: the fact-find, the capital needs and income replacement methods, inflation and return assumptions, existing group and individual coverage, and the CPP death, survivor's and children's benefits that offset the need. Component 1 carries 35% of the Life exam, and many of its items are calculations.
The tax and estate costs that life insurance is used to fund, and the business uses of life insurance. Covers the deemed disposition at death and the spousal rollover, RRSPs and RRIFs at death, probate and estate liquidity, creditor protection through beneficiary designations, key person cover, buy-sell agreements, collateral insurance and the capital dividend account.
How term, whole life and term to 100 policies work and when each suits a client: level, decreasing and increasing term; renewal and conversion privileges; participating and non-participating whole life, dividend options and premium offset; limited-pay designs; cash values, policy loans and the non-forfeiture options that apply when premiums stop.
Universal life's unbundled design, cost of insurance bases, death benefit options, investment risk, withdrawals, loans and the exempt-test deposit limits; the main supplementary benefits and riders; and group life insurance: the master contract, certificates, types of group coverage, underwriting limits, conversion, beneficiary rights and tax treatment.
How insurers classify risk and how a life contract is formed and kept in force: underwriting factors and requirements, ratings and exclusions, temporary insurance, delivery and the first premium, the duty to disclose and two-year contestability, misstatement of age, suicide clauses, grace periods, reinstatement, insurable interest, minors and the agent's role.
How life policies are taxed while the insured is alive: adjusted cost basis, dispositions, policy gains on surrender, withdrawals, loans and dividends, exempt and non-exempt policies, and transfers of ownership. Also covers in-force service: beneficiary changes, assignments, replacements, settlement options and the death claim process.
Before recommending A&S coverage, measure the income and costs a disability or illness would create and subtract what government programs and existing plans would pay. EI sickness, CPP disability, workers' compensation and provincial health plans all leave gaps.
How individual and group disability income policies define disability, when benefits start and stop, how renewability guarantees differ, and which riders change the coverage.
Lump-sum critical illness cover, long-term care benefits triggered by activities of daily living, and the reimbursement products (extended health, dental, travel, AD&D) that fill gaps in provincial coverage.
Group plans are master contracts held by an employer; business owners add overhead, buy-out and key person cover. Who pays the premium decides the tax.
How insurers assess A&S applicants, how premiums and benefits are taxed, and the statutory conditions that govern claims, renewals and changes during the life of the policy.
Know the client before the product: goals, time horizon, risk tolerance and capacity, then match asset classes and diversification to them.
RRSPs, RRIFs, TFSAs, locked-in plans and government benefits shape retirement income. Know the 2026 limits and the timing rules.
A segregated fund contract is a life insurance contract with market-linked value plus maturity and death benefit guarantees, sold by life agents.
Annuities turn capital into guaranteed income; group plans build it. Know which features raise or lower payments and who bears the risk.
Non-registered seg funds are taxed as trusts that allocate income, gains and losses to contract holders each year. Registered contracts follow the plan's rules.
The CCIR/CISRO Segregated Funds Guidance (Nov 2025) sets national expectations for selling and servicing seg fund contracts, built on fair treatment of customers.
The Ethics module starts with the law around every sale: who can contract, what makes a contract valid, how insurance law fits with provincial and federal law, and the privacy, anti-money-laundering and anti-spam rules that govern how agents collect information and contact clients.
How a life or A&S contract comes into force, what both sides must disclose, how long a misrepresentation can be raised, and the provisions that keep a policy alive or let it lapse: grace, reinstatement, age misstatement, assignment and the statutory conditions for A&S.
Who gets the money and how: revocable and irrevocable designations, wills, trustees for minors, the family class that protects a policy from creditors, and the rules and deadlines for paying life and A&S claims.
The organizations around a life agent (provincial regulators, CCIR, CISRO, CLHIA, Assuris, OLHI, OSFI and FINTRAC) and the licensing rules that apply before and after the LLQP: course validity, exam windows, rewrites, suitability and errors and omissions insurance.
The CCIR/CISRO fair treatment of customers guidance in practice: needs-based advice, conflicts of interest, disclosure, replacement and the LIRD, honest promotion, claims and complaints, and protecting client information.
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