IFSE Institute LLQP - Life License Qualification Program (LLQP)

By attempting to sell a segregated fund product without adequate knowledge or experience, Frankie breached her duty of competence. LLQP guidelines emphasize the importance of competence, requiring agents to have sufficient knowledge of the products they recommend to clients to ensure that they are acting in the client’s best interest​. Frankie’s failure to disclose her inexperience could potentially lead to errors that might adversely affect Walter, highlighting her lack of preparation and professional responsibility​.

In life insurance policies, once the policy is issued, the insured does not need to notify the insurer of any changes in occupation. The premiums and coverage are based on the occupation and risk profile at the time of application, and life insurance contracts do not generally require updates on occupational changes unless explicitly stated​.

Therefore, regardless of Samir’s current job as a scuba diver, his life insurance policy remains in force without the need for notification to the insurer. This is different from disability insurance, which may consider occupation changes to reassess risk and benefits​.

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Comprehensive and Detailed in Depth Explanation with Exact Extract from Documents and Guides:

TheIFSE Ethics and Professional Practice Course (Common Law)clarifies that acting as a deposit broker—facilitating the opening of a bank account—does not require a specific license beyond whatCecilia already holds as an insurance agent, provided it’s incidental to her insurance duties. She’s not selling bank products (A), and prior delivery (C) or deposit size (D) aren’t conditions for this. Assisting Tony with a savings account for premium payments is permissible without additional licensing, making B correct.

Life insurance policies in Canada generally include a “free look” or “cooling-off” period, typically lasting 10 days from the delivery date, during which the policyholder can cancel the policy for a full refund of any premiums paid​. Since Xander requested the cancellation within this period, he will be entitled to a full refund. This period allows policyholders to review the terms and make a final decision without financial penalty​.

In this scenario, the policy was accepted and delivered to Cassie by Mason before her biopsy, indicating that she was considered insurable at the time of application. However, the insurance policy is subject to a two-year contestability period, during which the insurer can investigate the claim if they believe relevant information regarding the insured’s health was omitted or misrepresented.

According to LLQP guidelines, insurance contracts are built on the principle of utmost good faith, requiring that both the client and the representative disclose all material facts that may affect the insurance risk. If the insured's health status changes significantly between the application and delivery of the policy, it is the representative's duty to inform the insurer to reassess the risk​​.

In this case, Mason, as the insurance representative, failed to disclose Cassie’s new health condition, which is considered a material change to her insurability. Under LLQP ethics and practice standards, non-disclosure of this change can result in the insurer denying the claim, as it affected the underwriting decision​​.

Therefore, due to the lack of disclosure by Mason, the insurance company would have grounds to deny the claim based on this material change in insurability, aligning with LLQP provisions and insurance contract law.

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Comprehensive and Detailed Explanation From Exact Extract:

For high-income individuals like Nelson, a collateral loan strategy using a Universal Life (UL) policy allows for tax-free access to accumulated values without triggering income. This is preferable to direct withdrawals, which are taxable. LLQP outlines this as a common retirement strategy for affluent clients.

When Larissa passes away, her RRSP will be fully taxable on her final income tax return, as it is considered income in the year of death unless rolled over to a qualified beneficiary, such as a spouse. Her TFSA, on the other hand, is not taxable upon death as it passes tax-free to the beneficiary or estate. The principal residence (condo) and cottage may incur capital gains tax, but they are not fully taxable as income.Therefore,Option D, the RRSP, is correct​.

The renewal of a term life insurance policy typically results in a higher premium due to the increased age of the insured. Since the policy is approaching renewal, Dr. Kumar needs to know what thenew premium amountwill be. Renewal premiums are usually based on the insured’s age at renewal and are essential for decision-making regarding the affordability and continuation of the policy. Therefore,Option Dis the correct response as it highlights a critical piece of information Kavya requires to complete her review​​.

Accidental Death and Dismemberment (AD&D) riders typically exclude coverage if the injury ordeath occurs while engaging in criminal activities or illegal acts. Since Francis was injured while breaking into his brother’s house, his actions are considered illegal, and this would void any claim under the AD&D rider. As a result,Francis will not receive any benefitdue to the circumstances surrounding the injury​​.

Comprehensive and Detailed Explanation From Exact Extract:

Even when a beneficiary is irrevocable, the policyholder is allowed to access Living Benefits (e.g., terminal illness benefits) without the irrevocable beneficiary’s consent. These are considered advances on the death benefit. After the policyholder's death, the remainder of the death benefit goes to the beneficiary tax-free.