Advocis - Foran LLQP Suggested Study Schedule WITH KEY TERMS

Advocis / Foran LLQP
Suggested Study Schedule

WITH KEY TERMS
Advocis LLQP 2012 TFAAC 1

Introduction
This schedule focuses on the critical learning areas identified by provincial regulators. Depending
on other time demands, candidates should consider completing a minimum of one session per
week.
Candidates who are new to the industry may want to allot eight to ten hours of study to each
session.
Those with a background in financial services may want to allot three to four hours of study per
session.

LLQP Study Aids
Advocis recommends the following optional LLQP products to enhance your learning experience.
LLQP Practice Exam comprised of 225 multiple-choice questions each with an explanation of
the appropriate answer. The focus of this exam is to apply your knowledge and comprehension
of the material to a given situation. The questions are designed to simulate the style and difficulty
level of the certification exam and the provincial licensing exam. All the important topics in the
LLQP syllabus are addressed with practice questions.
Cost: $75
For more information on the above item, contact Advocis member services at 1-877-773-6765.
A four-day intensive classroom seminar, offered through Foran Financial Institute, designed
to assist the individual to obtain the necessary knowledge to pass the Provincial LLQP Life
Agent's exam.
It covers all Advocis/Foran Modules and prepares you to write the Advocis/ Foran LLQP
Certification Exam. Students who have purchased the Advocis/ Foran LLQP Study Guide have
the option of writing the Advocis/Foran LLQP Certification Exam at the end of Day 4 for seminars
in Toronto and Vancouver.
For more information on the classroom seminar, contact Foran Financial at 1-800-565-
0374 or visit the Foran Financial Web site.

Table of Contents
Life Insurance Products ............................................................................................ 7
Study Session 1 ............................................................................................................................... 7
Applications of Life Insurance in Estate and Financial Planning........................................................... 7
Important Aspects of Term Life Insurance.............................................................................................. 7
Key Terms- Study Session 1............................................................................................................ 8
Study Hours 3
Life Insurance Products ............................................................................................ 9
Study Session 2 ............................................................................................................................... 9
Important Aspects of Whole and Universal Life Insurance .................................................................... 9
Key Terms- Study Session 2.......................................................................................................... 10
Study Hours 6
Life Insurance Products .......................................................................................... 11

Study Session 3 ............................................................................................................................. 11
Provisions in a Life Insurance Contract ................................................................................................ 11
Study Hours 5
Accident and Sickness Insurance .......................................................................... 13

Study Session 4 ............................................................................................................................. 13
Provisions in Disability Insurance Contracts......................................................................................... 13
Government Disability Programs .......................................................................................................... 13
Study Hours 5
Accident and Sickness Insurance .......................................................................... 15

Study Session 5 ............................................................................................................................. 15
Business Applications for Disability Income Insurance ........................................................................ 15
Taxation of Health Insurance Premiums and Benefits ......................................................................... 15
Basics of Critical Illness and Long-Term Care Insurance .................................................................... 15
Study Hours 5
Group Insurance....................................................................................................... 17
Study Session 6 ............................................................................................................................. 17
Important Aspects of Group Life Insurance .......................................................................................... 17
Study Hours 4
Group Insurance....................................................................................................... 20
Study Session 7 ............................................................................................................................. 20
Important Aspects of Group Disability Insurance ................................................................................. 20

Basics of Dental Care and Group Accident & Sickness Insurance...................................................... 20
Study Hours 5
Underwriting Policy Issue and Claims................................................................... 23

Study Session 8 ............................................................................................................................. 23
Important Responsibilities of the Agent in the Application and Claims Processes.............................. 23
Study Hours 8
Professional Standards | Common Law, Contract Law & Life Insurance.......... 26

Study Session 9 ............................................................................................................................. 26
Important Aspects of the Agents Obligations and Duties to the Client and Insurance Company....... 26
Study Hours 12

Investment Products | Fundamentals of Insurance Investments ....................... 28
Study Session 10 ........................................................................................................................... 28
Important Aspects of Insurance Investments and their Provisions ...................................................... 28
Emphasizing the Special Duties for IVICs ............................................................................................ 28
Important Provisions of Annuities and Related Products ..................................................................... 28
Determining the Best Product for the Client ......................................................................................... 28
Key Terms- Study Session 10........................................................................................................ 29
Study Hours 8
Investment Products | Fundamentals of Insurance Investments ....................... 30

Study Session 11 ........................................................................................................................... 30
Industry Guarantees for Consumer Protection ..................................................................................... 30
Important Aspects of IVICs and the Agents Duties in Selling Them ................................................... 30
Important Information on Risk Management, Particularly Investment Risk ......................................... 30
Study Hours 8
Retirement................................................................................................................. 32
Study Session 12 ........................................................................................................................... 32
Ways of Assisting the Client in Retirement Planning ........................................................................... 32
Retirement Products and their Application ........................................................................................... 32
Study Hours 12
Taxation | Needs Analysis....................................................................................... 34

Study Session 13 ........................................................................................................................... 34
What the Agent Needs to Know About Taxation, and When to Engage a Tax Professional .............. 34
Relevant Calculations an Agent Should be Able to Perform................................................................ 34
Issues Related to Performing a Financial Needs Analysis................................................................... 34
Study Hours 16

Life Insurance Products
Study Session 1
Applications of Life Insurance in Estate and Financial Planning
Important Aspects of Term Life Insurance
To do
Module 1: Financial and Insurance Industry Module 2: Life Insurance Products
Overview Read pages 2-1 to 2-32
Read entire module Complete end-of-module questions 1 to 12
Complete all end-of-module questions (20)
Total reading: 58 pages
Learning Objectives Study Guide Reference

Select the most appropriate insurance product Basic Life and Health Insurance Products
type, given specific circumstances.
Explain how term life insurance works. Term Insurance
Parties to a Term Insurance Contract
Components of a Term Life Insurance
Contract
Multiple Life and Joint Life Insurance
Policies
Renewable and Non-renewable Term
Plans
Convertible Term Plans
Attained Age Conversion
Original Age Conversion
Select the most appropriate term individual life When to Recommend Term Insurance
insurance product to meet specific needs.
Recommend the most appropriate permanent Case studies:
life insurance products to meet specific needs. Norman Yates
The Jeffersons
Rod Sterling
Barbara Hanna
Compare the advantages and disadvantages Disadvantages and Limitations of Term
of whole life insurance to term life insurance. Insurance
Comparing and Contrasting Term
Insurance and Permanent Insurance
The Differences Between Term and
Permanent Insurance Policies

Key Terms - Study Session 1
Authorized stock Personal insurance

Baby boom Policy term
Convertible term insurance Policyholder
Conversion privilege Policyowner
Decreasing term insurance Premium
Emergency fund Premium mode
Face amount Premium notice
Fraternal insurance Re-entry term
Fraternal Insurance Counselor (FIC) Renewable term insurance
Fraternal society Renewal
Individual insurance Smoker
Mortgage insurance Stock insurance company
Mutual insurance company Sum insured
Non-participating insurance Term of policy
Non-smoker Term life insurance
Non-smoker policies Term to 100
Participating shares

Study Session 2
Important Aspects of Whole and Universal Life Insurance
To do
Module 2: Life Insurance Products
Read pages 2-33 to 2-57
Complete end-of-module questions 13 to 20

Explain the difference between participating Non-participating (Non-par) and Participating
whole life and non-participating whole life. (Par) Policies
Compare the advantages and disadvantages Strengths and Weaknesses of Universal Life
of universal life insurance to other forms of
individual life insurance.
Explain the difference between yearly Guaranteed versus Adjustable Rates for
renewable term and term to 100 mortality Mortality Deductions
costing in universal life insurance.
Explain the difference between guaranteed Guaranteed versus Adjustable Rates for
and adjustable mortality costs in universal life Mortality Deductions
insurance.
Explain the impact of investment choices on Universal Life Investment Options: Guaranteed
the viability of universal life insurance. versus Variable
Explain the purpose of term insurance riders to Policy Benefits and Riders
permanent life insurance.
Explain the guaranteed insurability benefit, its Guaranteed Insurability
benefits and appropriate use.

Key Terms- Study Session 2
Accidental death benefit (ADB) Paid-up
Accidental means Paid-up additions (PUAs)
Accrual rules Participating insurance
Additional provisions Partnership insurance
Adjusted cost basis (ACB) Permanent insurance
Adjustment income Personal insurance
Amount at risk Person insured
Automatic premium loan (APL) Policy
Business insurance Policy term
Buy-sell agreement
Cash surrender value (CSV) Policy dividend
Contract Policy fee
Contract of life insurance Policy loan
Contributions Policyholder
Death benefit Policyowner
Disposition Policy reserves
Dividend Population mortality table
Dividend additions Preferred beneficiary
Dividend gross-up Preferred risk
Dividend options Premium
Endow Premium mode
Endowment insurance Premium notice
Exemption test policy Premium offset
Expense loading Premium reduction
Extra premium Premium taxes
Face amount Quick-pay
Front-end load Rate of mortality
Guaranteed cash surrender value Rated policy
Individual insurance Reduced paid-up insurance
Insurable interest Revocable beneficiary
Insured Rider
Interest-rate-sensitive policy Settlement options
Ledger cost Single premium
Level premium plan Smoker
Life insurance Special class
Life insurance company Standard or statutory provisions
Life insured Standard risk
Loan value Statutory conditions
Mortality table (and experience) Straight life
MTAR Sum insured
Net cost Surrender
Net cost of pure insurance (NCPI) Surrender charge
Net income Surrender value
New money policies Unbundled
Non-exempt life insurance policy Universal life insurance policy
Optional benefit Variable contract
Optional settlements Variable life
Ordinary life straight life Whole life insurance

Study Session 3
Provisions in a Life Insurance Contract
To do
Module 2: Life Insurance Products
Complete 9 Life Insurance Case Studies/Sample Questions listed identified on pages 2-69

Explain the impact to the client of these policy Policy Provisions: for students to understand
provisions: and be able to apply all of the standard life
10-day rescission right insurance policy provisions mandated by the
Entire contract Uniform Life Insurance Act
Suicide and incontestability
Grace period
Reinstatement
Smoking status
Misstatement of age or sex
Settlement options
Material misrepresentation
Explain the consequences of an absolute Policy Assignments
assignment. Absolute Assignments
Given specific circumstances, select the most The Role of Life Insurance in Financial and
appropriate individual life insurance products to Estate Planning
match a clients situation and needs Personal Financial Needs Met by Life
Insurance
Review case study analysis Sunil and
Jasmine

Absolute assignment Individual insurance
Accident insurance Insurable interest
Accidental death benefit (ADB) Insured
Accidental means Irrevocable beneficiary
Additional provisions Joint life policy
Adjusted cost basis (ACB) Lapse
Age admitted Lapsed policy
Age adjustment Loan value
Age at issue Non-forfeiture options
Age limits Non-forfeiture values
Assignee Non-smoker
Assignment Non-smoker policies
Assignor Paid-up
Beneficiary Parent waiver of premium
Cash surrender value (CSV) Policy loan
Collateral assignment (insurance) Policyholder
Common disaster clause Policyowner
Contingent owner Preferred beneficiary
Contract Preferred risk
Contract of life insurance Replacement
Days of grace Revocable beneficiary
Death benefit Rider
Double indemnity clause Settlement options
Extra premium Special class
Face amount Suicide clause
Free look Surrender
Front-end load
Grace period Surrender charge
Guaranteed cash surrender value Surrender value
Guaranteed insurability benefit (GIB)

Accident and Sickness Insurance
Study Session 4
Provisions in Disability Insurance Contracts
Government Disability Programs
To do
Module 3: Accident and Sickness Insurance

Define and explain non-cancellable and Basic Features of Disability Insurance
guaranteed renewable, guaranteed renewable, Policies
and cancelable disability contracts. Guaranteed Renewability
Describe methods to establish the amount of Policy Benefits
disability income benefits that will be paid to a Amount of the Benefit
disabled person
Describe waiver of premium, presumptive Optional Benefits
disability and supplemental benefits, including
partial disability, residual disability, future
purchase option, cost-of-living adjustments.
Describe the limitations and exclusions that Ratings And Riders The Terms Under
could exist under a disability insurance Which a Policy Might Be Issued
contract. Extra Premium
Exclusion Rider
Partial Exclusion
Contractual Exceptions
Limitations
Underwriting
Retroactive Underwriting
Cancellation
Compare the federal government sponsored Government Disability Programs
programs to provide short- and long-term
disability benefits

Accident Medical examination
Accidental bodily injury Miscellaneous expenses
Accidental death and dismemberment Morbidity tables
benefit Non-cancellable policies
Accidental dismemberment Non-confining sickness
Accident and sickness insurance Non-economic loss (NEL)
Accidental means Non-disabling injury
Aggregate limit clause Non-occupational policy
Benefit Nursing expense provision
Benefit period Occupational classifications
Blue Cross Occupational hazard
Business insurance Occupational injury
Business buy-out Partial disability
Buy-sell agreement Permanent disability
Commercial policies Pre-existing condition
Contract Pre-disability income
Declaration Qualifying period
Disability Recurrence clause
Disability (income) insurance Reduction of benefits
Dismemberment clause Rehabilitation benefit
Elimination period Rider
Endorsement Sickness insurance
Exceptions -exclusions Smoker
Free look Standard or statutory provisions
Grace period Standard risk
Health insurance Statutory conditions
Hospital expense insurance Total disability
Indemnity Total disability waiver of premium
Indexation of pre-disability earnings (TDWP)
Integration clause Travel accident policy
Issue and participation limits Waiting period
Lifetime disability benefit Waiver
Malingering Waiver of premium disability benefit
Medical attendance

Accident and Sickness Insurance
Study Session 5
Business Applications for Disability Income Insurance
Taxation of Health Insurance Premiums and Benefits
Basics of Critical Illness and Long-Term Care Insurance
To do
Module 3: Accident and Sickness Insurance

Distinguish among key person disability Business Applications For Disability Income
coverage, disability buyout coverage, and Insurance
business overhead expense coverage.
Describe the tax implications of various types The Tax Treatment of Individual Disability
of individual disability insurance policies Benefits
Taxation of Government, Group, and
Individual Plans
Tax Treatment of Private Health Insurance
and Government Plans
Describe the various provisions included in an POLICY PROVISIONS
Accident and Sickness insurance policy Renewal Feature
including, renewal, grace period, Grace Period
incontestability, pre-existing condition, claims, Incontestability Clause
physical examination, change of occupation, Pre-existing Conditions Clause
and over insurance. Claims Clause
Physical Examination Clause
Change of Occupation Clause
Over (Excess) Insurance
Describe examples of conditions covered Critical Illness Insurance (CI)
under a critical illness policy.
Describe and provide examples of conditions Long Term Care Insurance (LTC)
that are covered under a long-term care policy.
Select the most appropriate products from Case study analyses:
among disability income, accident and Joyce Thompson
sickness, critical illness and long term care Doug Thompson
insurance to meet a clients needs

Accident Medical examination
Accidental bodily injury Miscellaneous expenses
Accidental death and dismemberment Morbidity tables
benefit Non-cancellable policies
Accidental dismemberment Non-confining sickness
Accident and sickness insurance Non-economic loss (NEL)
Accidental means Non-disabling injury
Aggregate limit clause Non-occupational policy
Benefit Nursing expense provision
Benefit period Occupational classifications
Blue Cross Occupational hazard
Business insurance Occupational injury
Business buy-out Partial disability
Buy-sell agreement Permanent disability
Commercial policies Pre-existing condition
Contract Pre-disability income
Declaration Qualifying period
Disability Recurrence clause
Disability (income) insurance Reduction of benefits
Dismemberment clause Rehabilitation benefit
Elimination period Rider
Endorsement Sickness insurance
Exceptions -exclusions Smoker
Free look Standard or statutory provisions
Grace period Standard risk
Health insurance Statutory conditions
Hospital expense insurance Total disability
Indemnity Total disability waiver of premium
Indexation of pre-disability earnings (TDWP)
Integration clause Travel accident policy
Issue and participation limits Waiting period
Lifetime disability benefit Waiver
Malingering Waiver of premium disability benefit
Medical attendance

Group Insurance
Study Session 6
Important Aspects of Group Life Insurance
To do
Module 4: Group Insurance

Explain the definitions of: group insurance, Group Insurance Definitions
member, group policyholder and waiver of Group Insurance Member
premium benefit. Policyholder
Waiver of Premium
Compare and contrast individual and group Advantages of Group Benefit Programs: a
insurance products. comparison of the basic principles of group
and individual insurance contracts
Explain the terms deductible and co-insurance Deductibles and Co-insurance: How they
and how they impact benefit payments. Impact Benefit Payments
Explain the relationship among credibility, Methods For Calculating Group Insurance
manual rating, experience rating, and blended Premium Rates
rating.
Compare and contrast the following funding Funding Mechanisms
methods: non-refund accounting, refund
accounting and administrative services only
(ASO).
Determine how a primary and secondary Coordination Of Benefits (COB)
carrier would coordinate benefits.
Compare basic A D&D and voluntary AD &D Accidental Death and Dismemberment
and how employees qualify for each (AD&D)
Voluntary Accidental Death and
Dismemberment Plans

Accident Indexation of pre-disability earnings
Accidental bodily injury Insurable interest
Accidental death and dismemberment Insured
benefit Integration clause
Accidental death benefit (ADB) Intentional injury
Accidental dismemberment Issue and participation limits
Accident and sickness insurance Life insurance
Accidental means Life insurance company
Administrative services only (ASO) Life insured
Adverse selection Lifetime disability benefit
Agent (life insurance) Long-term disability (LTD)
Aggregate limit clause Lump sum
Association group insurance Major medical expense benefit
Beneficiary Malingering
Benefit Master policy
Benefit period Material facts
Blue Cross Maturity date
Catastrophic loss Maximum tax actuarial reserve (MTAR)
Certificate of insurance Medical attendance
Claim Medical examination
Claimant Miscellaneous expenses
Classification Misrepresentation
Coinsurance Misstatement of age
Contract Morbidity tables
Death benefit Mortality deductions
Deductible Mortality table (and experience)
Dental benefits Mortgage insurance
Disability Non-cancellable policies
Disability (income) insurance Non-contributory group plan
Dismemberment clause Non-confining sickness
Double indemnity clause Non-economic loss (NEL)
Duplicate coverage Non-disabling injury
Effective date Non-occupational policy
Eligible expenses Non-occupational policy
Elimination period Non-participating insurance
Employee booklet Non-smoker
Endorsement Non-smoker policies
Evidence of insurability Nursing expense provision
Exceptions -exclusions Nursing home provision
Expense loading Occupational classifications
Experience rating Occupational hazard
Expiry date Occupational injury
Extended health care insurance Out-of-province coverage
Flat deductible Overhead insurance
Fraternal Insurance Counselor (FIC) Over-insured
Fraternal society Permanent insurance
Fundamental group principles Permanent disability
Future insurance option Personal insurance
Group annuity contract Person insured
Group conversion privilege Physical hazard
Group insurance Physical impairment
Group life insured Population mortality table
Guaranteed renewable Pre-existing condition
Health insurance Pre-disability income
Hospital expense insurance Qualifying period
Indemnity Recurrence clause

Rehabilitation benefit Suicide clause
Reimbursement policy Sum insured
Relation of earnings to insurance Supplementary major medical expense
Renewable term insurance coverage
Renewal Term of policy
Risk Term life insurance
Schedule Term to 100
Schedule type policy Third-party administration (TPA)
Self-insured group Total disability
Settlement options Total disability waiver of premium
Sickness insurance (TDWP)
Smoker Travel accident policy
Special class Unallocated benefit
Standard or statutory provisions Waiting period
Standard risk Waiver
Statutory conditions Waiver of premium disability benefit
Substandard (impaired) risk Workers Compensation

Group Insurance
Study Session 7
Important Aspects of Group Disability Insurance
Basics of Dental Care and Group Accident & Sickness Insurance
To do
Module 4: Group Insurance
Complete the end of module questions 22 to 50
Complete the 3 Group Insurance Case Studies/Sample Questions identified on page 4-46

Compare the definitions of disability, as used Group Disability Plan
by short- and long-term income replacement Short-term Disability
plans. Long-term Disability
Describe the features and coverages of a Features And Coverages Of A Group
group disability plan, and how the plan Disability Plan
functions Partial Disability Benefits
Recurrent Disability
COLA adjustment
Direct Offsets
Continuation Of Benefits
Termination Of Benefits
Waiver Of Premium
Pre-Existing Conditions
Standard Exclusions and Limitations
Explain the impact of coordination of benefits Coordination of Benefits and Third-party
and subrogation on a group disability Subrogation
insurance policy.
Discuss the limitations and exclusions usually Limitations and Exclusions of an Employer-
found in employer-sponsored group A&S sponsored Group Accident and Sickness Plan
plans.
Describe a typical dental plan, including Dental Care
coverages and coordination of benefits
Describe an extended health plan, including Medical Services Available under Employer-
coverages and coordination of benefits, sponsored Group Accident and Sickness
(A&S) Plans

Accident Indemnity
Accidental bodily injury Indexation of pre-disability earnings
Accidental death and dismemberment Insurable interest
benefit Insured
Accidental death benefit (ADB) Integration clause
Accidental dismemberment Intentional injury
Accident and sickness insurance Issue and participation limits
Accidental means Life insurance
Administrative services only (ASO) Life insurance company
Adverse selection Life insured
Agent (life insurance) Lifetime disability benefit
Aggregate limit clause Long-term disability (LTD)
Association group insurance Lump sum
Beneficiary Major medical expense benefit
Benefit Malingering
Benefit period Master policy
Blue Cross Material facts
Catastrophic loss Maturity date
Certificate of insurance Maximum tax actuarial reserve (MTAR)
Claim Medical attendance
Claimant Medical examination
Classification Miscellaneous expenses
Coinsurance Misrepresentation
Contract Misstatement of age
Death benefit Morbidity tables
Deductible Mortality deductions
Dental benefits Mortality table (and experience)
Disability Mortgage insurance
Disability (income) insurance Non-cancellable policies
Dismemberment clause Non-contributory group plan
Double indemnity clause Non-confining sickness
Duplicate coverage Non-economic loss (NEL)
Effective date Non-disabling injury
Eligible expenses Non-occupational policy
Elimination period Non-occupational policy
Employee booklet Non-participating insurance
Endorsement Non-smoker
Evidence of insurability Non-smoker policies
Exceptions -exclusions Nursing expense provision
Expense loading Nursing home provision
Experience rating Occupational classifications
Expiry date Occupational hazard
Extended health care insurance Occupational injury
Family deductible Out-of-province coverage
Flat deductible Overhead insurance
Fraternal Insurance Counselor (FIC) Over-insured
Fraternal society Permanent insurance
Fundamental group principles Permanent disability
Future insurance option Personal insurance
Group annuity contract Person insured
Group conversion privilege Physical hazard
Group insurance Physical impairment
Group life insured Population mortality table
Guaranteed renewable Pre-existing condition
Health insurance Pre-disability income
Hospital expense insurance Qualifying period

Recurrence clause Suicide clause
Rehabilitation benefit Sum insured
Reimbursement policy Supplementary major medical expense
Relation of earnings to insurance coverage
Renewable term insurance Term of policy
Renewal Term life insurance
Risk Term to 100
Schedule Third-party administration (TPA)
Schedule type policy Total disability
Self-insured group Total disability waiver of premium
Settlement options (TDWP)
Sickness insurance Travel accident policy
Smoker Unallocated benefit
Special class Waiting period
Standard or statutory provisions Waiver
Standard risk Waiver of premium disability benefit
Statutory conditions Workers Compensation
Substandard (impaired) risk

Underwriting Policy Issue and Claims
Study Session 8
Important Responsibilities of the Agent in the Application and Claims Processes
To do
Module 5: Underwriting Policy Issue and Claims
Read entire module
Complete 4 Underwriting, Policy Issue and Claims Case Studies/Sample Questions identified
on pages 5-36

Explain the agents duty to educate the client in The Importance of Accurate Field Underwriting
the consequences of incorrect information
being provided for the underwriting process.
Describe the key components of the life Completing the Application Form
insurance application as they affect the
underwriting process, including agent comment
section, accurate completion of medical
questions, financial information and product
selection.
Explain the impact of incomplete or inaccurate The Impact of Gathering Incomplete Or
information in the application. Inaccurate Information in the Field
Underwriting (Application) Process
Explain what a Temporary Insurance The Temporary Insurance Agreement
Agreement is, how it impacts the applicant and
the limitations associated with the issuance of
the TIA.
Describe the steps that head office undertakes Dealing with an Application
in processing an application for life insurance
when it is received from the field, including
doctors medical, attending physicians
statement, inspection reports, medical
information bureau, hazardous sports and
occupations, financial underwriting, etc.
Describe the agents responsibilities in delivery Delivering the Insurance Contract
of the insurance contract, including right of
rescission, and proof of delivery and when
there has been a change in the health of the
insured.

Absolute assignment
Accident Contract of life insurance
Accidental bodily injury Contributions
Accidental death and dismemberment Convertible term insurance
benefit Conversion privilege
Accidental death benefit (ADB) Conversion ratio (rate)
Accidental dismemberment Corporation insurance
Accident and sickness insurance Cut-off provision
Accidental means Days of grace
Additional provisions Death benefit
Adjustment income Declaration
Administrative services only (ASO) Decreasing term insurance
Adverse selection Deductible
Age admitted Disability (income) insurance
Age adjustment Disclosure
Age at issue Dismemberment clause
Age limits Double indemnity clause
Agent (life insurance) Duplicate coverage
Aggregate limit clause Effective date
Allocated benefits Eligible expenses
Amount at risk Elimination period
Annuitant Evidence of insurability
Annuitization Exceptions -exclusions
Anti-selection Exempt policy
Apparent authority Exemption test policy
Arms length Expense loading
Application Experience rating
Assignee Expiry date
Assignment Extended health care insurance
Assignor Extended term insurance
Association group insurance Extra premium
Assurance/insurance Face amount
Assuris Free look
Attained age Front-end load
Beneficiary Fundamental group principles
Benefit Future insurance option
Benefit period Incontestability
Blue Cross Indemnity
Broad form Individual insurance
Bundled Insurable interest
Business insurance Insured
Business buy-out Integration clause
Buy-sell agreement Intentional injury
Catastrophic loss Interest-rate-sensitive policy
Claim Issue and participation limits
Claimant Key person insurance
Classification Lapse
Collateral assignment (insurance) Lapsed policy
Coinsurance Last acquired
Commercial policies Last expenses
Common disaster clause Life expectancy
Conditional insurance agreement Life insurance
Consideration Life insurance company
Consideration clause Life insured
Contingent owner Lifetime disability benefit
Contract Limited payment life insurance

Long-term disability (LTD) Quick-pay
Lump sum Rate of mortality
Major medical expense benefit Rated policy
Malingering Recurrence clause
Rehabilitation benefit
Material facts Reimbursement policy
Maturity date Reinstatement
Medical attendance Relation of earnings to insurance
Medical examination Replacement
Miscellaneous expenses Representation
Misrepresentation Rider
Misstatement of age Risk
Morbidity tables Schedule
Mortality deductions Schedule type policy
Mortality table (and experience) Settlement options
Non-smoker Sickness insurance
Non-smoker policies Single premium
Nursing expense provision Small business corporation
Nursing home provision Smoker
Occupational classifications Special class
Occupational hazard Standard or statutory provisions
Occupational injury
Overhead insurance Standard risk
Over-insured Statutory conditions
Person insured Substandard (impaired) risk
Physical hazard Suicide clause
Physical impairment Sum insured
Policy Supplementary major medical expense
Policy term coverage
Policy dividend Surrender
Policy fee Surrender charge
Policy loan Surrender value
Policyholder Survivorship life annuity
Policyowner Temporary insurance agreement
Policy reserves Total disability
Population mortality table Total disability waiver of premium
Pre-existing condition (TDWP)
Pre-disability income Travel accident policy
Preferred risk Underwriting
Private corporation Waiting period
Prorating Waiver
Public corporation Waiver of premium disability benefit
Qualifying period Warranties

Professional Standards | Common Law,
Contract Law & Life Insurance
Study Session 9
Important Aspects of the Agents Obligations and Duties to the Client and
Insurance Company
To do
Module 6: Professional Standards Module 7: Common Law, Contract Law and
Read entire module Life Insurance
Complete all end-of-module questions (45) Read entire module
Complete Common Law, Contract Law and
Life Insurance Case Study/Sample
Question identified on pages 7-13

Describe the implications of the regulations The Agents Legal Role in the Underwriting
governing the distribution of insurance and Contracting Process
products as they relate to the criminal code in
regard to misrepresentation, theft, and forgery.
Explain how Errors and Omissions insurance The Benefits of Errors and Omissions
would respond to a consumer loss. Insurance
Explain the responsibilities and obligations of The Fiduciary Responsibilities of an Agent
the agent in an agent-client relationship, to His or Her Clients
including agency law. The Law of Agency
The Fiduciary Duties of an Agent
The Rules of Agent Conduct
The Application of the Know your Client
Rule
Explain the agents duties pertaining to the The Fiduciary Responsibilities of an Agent
client, including disclosure, putting the clients to His or Her Clients
interest first, coercion, undue influence, due The Nature of the Law of Agency
diligence, etc. The Fiduciary Duties of an Agent
Rule
Analyze the responsibilities of the agent with The Fiduciary Responsibilities of an Agent
respect to his/her role with the client and the to His or Her Clients
insurance company. The Nature of the Law of Agency
The Fiduciary Duties of an Agent
Rule

Actual authority Misrepresentation
Actuary Permanent insurance
Agent (life insurance) Permanent disability
Anti-selection Personal insurance
Apparent authority Person insured
Arms length Physical hazard
Application Physical impairment
Assurance/insurance Policy
Assuris Policy term
Authority Policy dividend
Canadian Council of Insurance Policy fee
Regulators, Policy loan
Canadian Institute of Chartered Life Policyholder
Underwriters and Chartered Financial Policyowner
Consultants (The) Policy reserves
Canadian Life and Health Insurance Premium
Association Inc. (CLHIA) Premium mode
Canadian Deposit Insurance Corporation Premium notice
(CDIC) Premium offset
Certificate of insurance Premium reduction
Chartered Financial Consultant (CH.F.C.) Premium taxes
Chartered Life Underwriter (CLU) Principal
Churning Rebating
Claim Reinstatement
Claimant Relation of earnings to insurance
Classification Replacement
Consumer Protection Plan Representation
Disclosure Secret profit
Fiduciary Standard or statutory provisions
Financial planning Statutory conditions
Fraternal insurance Stock insurance company
Fraternal Insurance Counselor (FIC) Twisting
Fraternal society Unfair competition or practice
Licence Uniform Life Insurance Act
Life insurance company Unilateral contract

Investment Products | Fundamentals of
Insurance Investments
Study Session 10
Important Aspects of Insurance Investments and their Provisions
Emphasizing the Special Duties for IVICs
Important Provisions of Annuities and Related Products
Determining the Best Product for the Client
To do
Module 8: Investment Products Other Than Life Insurance
Read entire module

Compare the differences between an The Deferred Annuity Compared with a
insurance company deferred annuity and a Guaranteed Investment Certificate (GIC)
GIC issued by banks and trust companies.
Explain the withdrawal rights, and the impact of Withdrawal Rights and Market Value
market value adjustments on withdrawals. Adjustments with Annuities
Determine an overall investment strategy and Case study analysis at the end of module 9
recommend the most appropriate products
using various insurance company investment
products.
Determine what happens when a client The Impact of Withdrawals on IVIC
withdraws a portion of the funds invested in an Guarantees
IVIC with respect to the guarantee for maturity.
Include such concepts as proportional and
linear reduction methods, maturity and death
benefit guarantees, adjusted cost basis, etc.
Describe the decision-making process to be Risk Management
used when determining the appropriate Case study analysis at the end of module 9
investment options to meet the risk tolerance
of the client.

Annuitant Group annuity contract
Annuitization Guaranteed investment certificate (GIC)
Annuity Immediate annuity
Anti-selection Impaired annuity
Back-end charges Information statement
Bearer bonds Investment company, fund or trust
Bond Issued stock
Callable bond Joint life and (last) survivor annuity
Canada Savings Bonds Joint life annuity
Cash refund annuity Life annuity
Closed-end fund Mutual fund
Common stock (shares) No-load funds
Consumer Price Index (CPI) Non-cumulative preferred shares
Convertible bond Non-exempt annuity contract
Convertible preferred share Participating shares
Conversion ratio (rate) Public corporation
Corporate bond Redeemable preferred shares
Corporate dividends Securities
Coupon bond Segregated funds
Creditor protection Stock
Creditors Stripped bond
Cumulative preferred shares Survivorship life annuity
Debenture Treasury bill
Deferred annuity Trust
Equities Trustee
First mortgage bond Variable annuity
Fixed annuity Variable contract
Government of Canada bond Variable life

Investment Products | Fundamentals of
Insurance Investments
Study Session 11
Industry Guarantees for Consumer Protection
Important Aspects of IVICs and the Agents Duties in Selling Them
Important Information on Risk Management, Particularly Investment Risk
To do
Module 9: Fundamentals of Insurance Investments
Read entire module
Complete 3 Fundamentals of Insurance Investments Case Studies/Sample Questions
identified on pages 9-40

Compare the consumer protection Safety And Regulation Of Banking In Canada
compensation funds available for IVICs, (Module 1)
securities and bank offered investments. Assuris Limits (Module 9)
Explain the valuation process for IVICs Unitization
Determine the impact on the client of the The Benefits Of Investing In Segregated Fund
distinguishing features of segregated funds, Policies
including maturity guarantee, death benefit,
creditor protection, reset options, and
exemption from probate.
Explain the content and purpose of the Summary Information Folders
Information Folder and the benefits it brings to Requirements of the CLHIA Guidelines on
a client. IVICs
Compare and contrast the investment Risk Management (Module 9)
instruments, risk and volatility of various types The Nature of Investment Risk (Module 8)
of funds, including: money market funds,
mortgage funds, bond funds, dividend funds,
equity funds, international and global funds,
specialty funds, real estate funds, balanced
funds, asset allocation funds, index funds and
fund of funds.
Explain the various sales charge options and Withdrawal Rights and Market Value
loads available, and their impact on the Adjustments with Annuities
investment decision.
Differentiate between a segregated fund and a Individual Variable Insurance Contracts
mutual fund in terms of product approval, rules (IVICS Segregated Funds) (Module 9)
governing the product, CLHIA guidelines, sales Mutual Funds (Module 8)
licensing requirements, taxation, valuation, and
ownership of assets.
Describe the advantages and disadvantages of Non-insurance investments (Module 8)
various life insurance investment vehicles as Insurance investments (Module 9)
compared to non-insurance investment
vehicles.

Annuitant Guaranteed investment certificate (GIC)
Annuity Immediate annuity
Anti-selection Impaired annuity
Back-end charges Information statement
Bearer bonds Investment company, fund or trust
Bond Issued stock
Callable bond Joint life and (last) survivor annuity
Canada Savings Bonds Joint life annuity
Cash refund annuity Life annuity
Closed-end fund Mutual fund
Common stock (shares) No-load funds
Consumer Price Index (CPI) Non-cumulative preferred shares
Convertible bond Non-exempt annuity contract
Convertible preferred share Participating shares
Conversion ratio (rate) Public corporation
Corporate bond Redeemable preferred shares
Corporate dividends Securities
Coupon bond Segregated funds
Creditor protection Stock
Creditors Stripped bond
Cumulative preferred shares Survivorship life annuity
Debenture Treasury bill
Deferred annuity Trust
Equities Trustee
First mortgage bond Variable annuity
Fixed annuity Variable contract
Government of Canada bond Variable life
Group annuity contract

Retirement
Study Session 12
Ways of Assisting the Client in Retirement Planning
Retirement Products and their Application
To do
Module 10: Retirement
Read entire module
Complete 5 Retirement Case Studies/Sample Questions identified on pages 10-77

Using examples, describe the advantages of Pension Income Splitting
pension income splitting
Describe what a pension adjustment (PA) is, The Retirement Savings System:
and what affect it will have on an RRSP Pension Adjustments
contribution.
Describe the advantage of income splitting Spousal RRSPs
through spousal RRSPs.
Develop a retirement plan at different ages Case Study Analyses:
using client-specific information. Peter and Wendy Deerling
The Opperman Case
Develop a plan for a client who has decided to Pre/Post Retirement Case Study:
retire. The Polanskis
Show the advantages of how income splitting Spousal RRSPs
between spouses can help reduce taxes for
both pre-and post-retirement.
Describe the tax consequences of a payment Registered Retirement Income Funds:
flow from a RRIF. Payments out of a RRIF
Describe what happens to the balance of a Registered Retirement Income Funds:
RRIF upon death. Death of the RRIF annuitant
Describe the tax consequences of a payment Life Income Funds:
flow from a LIF. LIF Payments
Describe what happens to the balance of a LIF Life Income Funds:
upon death. Death of the annuitant
Explain the value of having a Tax Free Saving Tax-Free Savings Accounts
Account in a clients portfolio.
Explain the value and use of Registered Registered Disability Savings Plans
Disability Savings Plans.
Design a pre and post retirement plan using Refer to the Pre/Post Retirement Case Study:
the most appropriate products. The Polanskis

Annuitant Life annuity
Annuitization Money purchase plan
Annuity Old Age Security Pension (OAS)
Canada Pension Plan (CPP) Past service
CPP/QPP sharing Pension adjustment
Career average earnings registered Pension adjustment reversal
pension plan Refund of premiums
Cash refund annuity Registered life insurance
Contributory group plan Registered pension plan (RPP)
Deferred annuity Registered retirement income fund
Defined benefit pension plan (RRIF)
Defined contribution pension plan RRIF minimum payment
Deposit administration contracts Registered retirement savings plan
Fixed annuity (RRSP)
Guaranteed Income Supplement (GIS) RRSP over-contribution
Guaranteed insurability benefit (GIB) Spousal RRSP
Immediate annuity Spouse
Impaired annuity Tax shelters
Income splitting Term certain annuity
Joint life and (last) survivor annuity Vesting
Joint life annuity

Taxation | Needs Analysis
Study Session 13
What the Agent Needs to Know About Taxation, and When to Engage a Tax
Professional
Relevant Calculations an Agent Should be Able to Perform
Issues Related to Performing a Financial Needs Analysis
To do
Module 11: Taxation Module 12: Needs Analysis
Read entire module Read entire module
Complete all end-of-module questions (47) Complete all end-of-module questions (40)
Complete 8 Taxation Case Studies/Sample
Questions identified on pages 11-45.

Identify individual situations where a life agent When should clients consult a tax professional
should recommend that a client should seek
independent tax advice.
Identify individual situations where insurance Personal tax-related applications for life
can be used as a strategy to address and insurance
resolve tax issues.
Identify business situations where insurance Business Tax-Related Applications For Life
can be used as a strategy to address and Insurance
resolve tax issues.
Demonstrate the use of an insurance policy as Review sections on personal and business tax-
a tax-planning tool. related applications for life insurance
Recommend the types and amounts of Researching product availability
insurance required to provide for financial
needs for an individual and their family.
Demonstrate proficiency in performing a The Mathematics of Insurance
variety of mathematical calculations involving
addition, subtraction, multiplication, division,
fractions, ratios, percentages, etc., for life
insurance applications.
Using typical insurance mathematical formulas Premium Calculations
and concepts prepare reports for insurance Modal Premium Calculations
applications, demonstrating proficiency. The Economic Value of a Human Life
Co-insurance and Deductible Factors
Select the most appropriate insurance Personal Financial Planning and Life Insurance
products (life, health and/or disability) to
match a clients situation/needs.
Design and develop a financial needs analysis Insurance and Risk Management Strategies
for a client to reduce the severity and
frequency of risk covering the areas of
retirement planning, investment planning, tax
planning and estate planning.
Using an effective financial planning process, Insurance and Risk Management Strategies
develop a strategy to address a clients The Martin Case
ongoing financial needs.

Account value Liquidity
Accrual rules Marginal tax rate
Adjusted cost base (ACB) Maximum tax actuarial reserve (MTAR)
Adjusted cost basis (ACB) MTAR
Attribution rules Net cost
Average tax rate Net cost of pure insurance (NCPI)
Balanced financial planning Partnership insurance
Buy-sell agreement Policy reserves
Capital cost allowance (CCA) Premium taxes
Capital gain or loss Present value of future benefits
Capital property Private corporation
Capital stock Public corporation
Capitalized value Recapture of capital cost allowance
Corporate dividends Rule of 72
Corporation insurance Small business corporation
Cost base Taxable income
Creditor protection Tax shelters
Creditors group insurance Testate
Creditors Testator
Crystallization Time value of money
Dividend tax credit Trust
Dollar cost averaging Trustee
Financial planning Unbundled
Income splitting Undepreciated capital cost (UCC)
Intestate One Will
Ledger cost Withholding tax
Leverage

Advocis / Foran LLQP
Suggested Study Schedule
WITH KEY TERMS

Advocis - Foran LLQP Suggested Study Schedule WITH KEY TERMS

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Advocis - Foran LLQP Suggested Study Schedule WITH KEY TERMS

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Advocis / Foran LLQP

Suggested Study Schedule

Advocis LLQP 2012 TFAAC 1

Advocis LLQP 2012 TFAAC 2

Advocis LLQP 2012 TFAAC 3

Life Insurance Products .......................................................................................... 11

Accident and Sickness Insurance .......................................................................... 13

Accident and Sickness Insurance .......................................................................... 15

Advocis LLQP 2012 TFAAC 4

Underwriting Policy Issue and Claims................................................................... 23

Professional Standards | Common Law, Contract Law & Life Insurance.......... 26

Advocis LLQP 2012 TFAAC 5

Investment Products | Fundamentals of Insurance Investments ....................... 30

Taxation | Needs Analysis....................................................................................... 34

Advocis LLQP 2012 TFAAC 6

Total reading: 58 pages

Learning Objectives Study Guide Reference

Advocis LLQP 2012 TFAAC 7

Authorized stock Personal insurance

Advocis LLQP 2012 TFAAC 8

Total reading: 25 pages

Learning Objectives Study Guide Reference

Advocis LLQP 2012 TFAAC 9

Advocis LLQP 2012 TFAAC 10

Total reading: 11 pages

Learning Objectives Study Guide Reference

Advocis LLQP 2012 TFAAC 11

Advocis LLQP 2012 TFAAC 12

Total reading: 22 pages

Learning Objectives Study Guide Reference

Advocis LLQP 2012 TFAAC 13

Advocis LLQP 2012 TFAAC 14

Total reading: 27 pages

Learning Objectives Study Guide Reference

Advocis LLQP 2012 TFAAC 15

Advocis LLQP 2012 TFAAC 16

Total reading: 27 pages

Learning Objectives Study Guide Reference

Advocis LLQP 2012 TFAAC 17

Advocis LLQP 2012 TFAAC 18

Advocis LLQP 2012 TFAAC 19

Total reading: 19 pages

Learning Objectives Study Guide Reference

Advocis LLQP 2012 TFAAC 20

Advocis LLQP 2012 TFAAC 21

Advocis LLQP 2012 TFAAC 22

Total reading: 36 pages

Learning Objectives Study Guide Reference

Advocis LLQP 2012 TFAAC 23

Advocis LLQP 2012 TFAAC 24

Advocis LLQP 2012 TFAAC 25

Total reading: 53 pages

Learning Objectives Study Guide Reference

Advocis LLQP 2012 TFAAC 26

Advocis LLQP 2012 TFAAC 27

Total reading: 49 pages

Learning Objectives Study Guide Reference

Advocis LLQP 2012 TFAAC 28

Advocis LLQP 2012 TFAAC 29

Total reading: 49 pages

Learning Objectives Study Guide Reference

Advocis LLQP 2012 TFAAC 30

Advocis LLQP 2012 TFAAC 31

Total reading: 78 pages