IFSE Institute LLQP - Life License Qualification Program (LLQP)

As a plan administrator for a defined contribution pension plan (DCPP), Josie’s primary responsibility is to manage the pension plan, which includes overseeing day-to-day operations, ensuring regulatory compliance, and handling communications with plan members. According to LLQP, plan administrators are tasked with ensuring the effective management and administrationof the plan, rather than setting benefit structures or addressing funding issues, which are typically responsibilities of the employer​​.

Options B, C, and D describe responsibilities typically held by the employer or plan sponsor, not the administrator.

Ano-loadsegregated fund hasno sales charge on entry or exit, making it ideal for short-term investment needs. Clara would retain full liquidity without penalties.

Exact Extract:

"No-load segregated funds allow investors to redeem their units without incurring a sales charge, making them ideal for investors who may require liquidity within a short timeframe."

(Reference:Segfunds-E313-2020-12-7ED, Chapter 2.3.2.3 No Sales Charge​)

Larson’s recommendation for Julia to open a TFSA and invest in a money market fund is a strategy aimed at building a readily accessible emergency fund. This fund can help mitigate the risk of unforeseen expenses, which is a common financial risk. According to LLQP principles, creating an emergency fund within a TFSA provides tax-free growth and easy access to funds for unexpected costs, such as repairs, medical expenses, or temporary income loss​​.

Options A, B, and C are incorrect as they relate to specific risks not directly addressed by the creation of an emergency fund. A TFSA primarily provides liquidity for unexpected expenses rather than addressing job loss, bankruptcy, or leveraging.

Eric has ashorter time horizon (3–5 years)and needs alower-risk, more diversifiedinvestment approach suitable for saving for a house. Abalanced fundspreads investments across stocks and bonds, helping reduce risk compared to the high volatility of a single-sector natural resources fund.

Exact Extract:

"Balanced funds combine equity and fixed-income investments to reduce portfolio volatility, providing moderate growth for investors with medium-term objectives."

(Reference:Segfunds-E313-2020-12-7ED, Chapter 2.2.5 Balanced Funds【49:1†Segfunds-E313-2020-12-7ED.pdf**)

Resetsallow theguaranteed amountof a segregated fund contract to beadjusted upwardto lock in market gains. This feature is highly attractive for risk-tolerant investors like Ulysses because it secures gains without sacrificing the original guarantee.

Exact Extract:

"Resetting the maturity and death benefit guarantees upward allows investors to lock in market gains, which can appeal to those investing in volatile, high-risk sectors."

(Reference:Segfunds-E313-2020-12-7ED, Chapter 2.1.2 Growth Secured by Reset​)

In a non-registered equity segregated fund, capital gains are only 50% taxable under Canadian tax rules. Amber’s investment grew by $15,000, which represents a capital gain. As per LLQP guidelines, capital gains on non-registered investments are subject to preferential tax treatment,meaning only half of the gain is added to taxable income. Therefore, only $7,500 of the gain will be taxable. This treatment is consistent with capital gains taxation principles outlined in the LLQP material, where only the taxable portion of the capital gain is reported, resulting in reduced tax liability compared to regular income​​.

Comprehensive and Detailed In-Depth Explanation: Reinstatement of a lapsed whole life insurance policy is governed by the Civil Code of Quebec (Article 2428) and insurer policies outlined in the LLQP. If a policy lapses due to non-payment but has a cash value, it may remain in force temporarily via an automatic premium loan or reduced paid-up option. For reinstatement, the insured typically must provide evidence of insurability and repay overdue premiums, interest, and any cash value used, as Concilius offers. The LLQP specifies that reinstatement, if within the insurer’s allowable period (often 2–5 years), restores the policy to its original terms—same premium and coverage—unless otherwise stipulated. Option B, “with the same initial conditions,” aligns with this standard practice. Option A (new premium based on age) applies to new policies, not reinstatement. Option C (premium increase) or D (reduced amount) might occur if insurability declines, but Concilius meets the conditions, so no adjustment is required. The Ethics manual stresses transparency in explaining reinstatement terms.

Dario’s conduct at the dinner party and afterward constitutes a breach of his duties and obligations towards the public. Insurance professionals are expected to maintain high standards of professionalism and respect the privacy and comfort of individuals they interact with. By persistently following Andrew and subsequently pressuring him with daily calls and unsolicited gifts, Dario failed to demonstrate respect for personal boundaries. This behavior could be seen as unprofessional and could harm the public’s trust in the industry. According to LLQP guidelines and ethical standards, agents must avoid aggressive solicitation and respect the autonomy and privacy of the public​​.

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Assuris provides protection to Canadian policyholders, including holders of segregated fund contracts, if their insurance company becomes insolvent. Assuris is a not-for-profit organization that safeguards policyholders by ensuring that they continue to receive guaranteed benefits within specified limits. This organization is essential for maintaining confidence in the Canadian insurance industry, offering peace of mind to policyholders that their segregated fund contracts are protected under such circumstances. Neither the Canadian Deposit Insurance Corporation nor the OmbudService for Life & Health Insurance provides this specific type of insolvency protection for segregated funds​​.

Comprehensive and Detailed In-Depth Explanation: Gold’s role as a financial security advisor, per the Distribution Act (Section 16), requires him to act competently and in the client’s best interest. Tax advice, wills, and mandates in case of incapacity (Civil Code, Articles 2166–2174) often exceed an advisor’s expertise, necessitating referral to specialists like tax experts and notaries. By not proposing such collaboration, Gold risks providing incomplete or inaccurate advice, breaching his duty of care to the client (option B). Option A (the public) is too broad, as no public harm is evident. Option C (other professionals) is unaffected, as no direct duty to them is breached. Option D (the profession) could apply indirectly via reputational harm, but theprimary breach is to the client. The Ethics and Professional Practice manual mandates advisors to recognize their limits and refer clients appropriately.