IFSE Institute Updated LLQP Exam Questions and Answers by travis

Beneficiary changes in insurance contracts generally become effective once the insurer receives and processes the signed change form. This is supported by LLQP material, which specifies that changes to beneficiary designations must be documented and received by the insurer for the new designation to take effect. Since Linda is a revocable beneficiary, Luisa can make this change without requiring Linda's consent​​.

Option B is incorrect as revocable beneficiaries do not require consent for changes. Option C is too general, and D is incorrect because a formal written change form is typically required.

To calculate net worth, we sum the couple’s assets and subtract their liabilities. The calculation is as follows:

Assets:

Leonard’s chequing account: $3,000

Ashley’s chequing account: $3,000

Leonard’s group RRSP: $40,000

Ashley’s car (Subaru WRX): $20,000

Total Assets:$66,000

Liabilities:

Ashley’s car loan: $10,000

Leonard’s student loan: $30,000

Total Liabilities:$40,000

Net Worth Calculation:

$66,000 (Assets) - $40,000 (Liabilities) = $26,000

The couple’s net worth is therefore $26,000, which aligns with LLQP methodologies for net worth calculations by considering all assets minus liabilities​.