LLQP Exam Dumps - IFSE Institute Life License Qualification Program Questions and Answers

Since the agent hadonly completed one prior transactionfor Helmut,Helmut was still considered a new clientfor identity verification purposes, and identification was mandatory. Failure to verify identity violates PCMLTFA regulations.

Exact Extract:

"Where there is no ongoing business relationship or where previous transactions were limited, the representative must identify the client again. Failure to do so for investments over $10,000 breaches PCMLTFA requirements."

(Reference:Segfunds-E313-2020-12-7ED, Chapter 4.3 Compliance Requirements​)

Most group benefits, including medical, dental, and retirement plans, require employees to complete astandard waiting period(e.g., 3 months) before they become eligible for enrollment.

Exact Extract:

"Group insurance plans often impose a standard waiting period before new employees become eligible for coverage."

(Reference:Sickness-E312-2020-12-7ED, Chapter 2.3.3.1 Qualification Period【45:3†Sickness-E312-2020-12-7ED.pdf**)

It is a regulatory requirement for the client, Kimeni, to acknowledge receipt of the Fund Facts document when purchasing segregated funds. This ensures that he has been informed about the key aspects of the investment, such as fees, risks, and performance, prior to purchase. LLQP guidelines mandate that documentation like Fund Facts must be provided to clients and that they acknowledge receipt to confirm informed consent​.

Option A is incorrect as the document must be delivered before the purchase. Option C is inaccurate as the document can be delivered in various formats, not exclusively electronic. Option D is incorrect because it is the agent’s responsibility to provide the document, not the client’s to request it.

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​)

As with most Deferred Profit Sharing Plan (DPSP) funds, Sebastian’s accumulated balance is generally locked-in, which means it cannot be withdrawn in cash while still under the plan. Instead, he may transfer it to a Locked-In Retirement Account (LIRA) upon leaving his employment or retiring, ensuring the funds remain tax-deferred. LLQP guidelines state that DPSP funds are generally subject to locking-in provisions, which restrict withdrawals and are specifically aimed at providing retirement income​​.

Thus, contrary to options A and B, Sebastian cannot withdraw the DPSP funds for discretionary purposes, such as funding his sabbatical, because of these restrictions. Option C is incorrect, as transferring to a Life Income Fund (LIF) would only be appropriate once the funds are in a LIRA, typically when Sebastian is closer to retirement age and ready to begin income withdrawals.

Assurisprotects policyholders against the risk of an insurance company failure. Segregated fund contracts are covered by Assuris guarantees, which ensure continuity of benefits up to certain limits.

Exact Extract:

"Assuris is the not-for-profit organization that protects Canadian policyholders if their life insurance company fails. Benefits related to segregated funds are covered up to certain limits."

(Reference:Segfunds-E313-2020-12-7ED, Chapter 2.1.11 Investor Protection​)

By investing heavily in asingle sector(mining), Nancy facesindustry risk. Industry-specific issues such as regulation changes, market conditions, or operational challenges could severely impact her investments.

Exact Extract:

"Industry risk is the risk that factors affecting an entire industry may negatively impact investments within that sector. Concentrating investments in a single industry increases exposure to this type of risk."

(Reference:Segfunds-E313-2020-12-7ED, Chapter 1.4.9 Industry Risk​)

ARegistered Education Savings Plan (RESP)is specifically designed to fundeducation savingsand allows contributions for a named beneficiary (Brienne), making it the perfect choice.

Exact Extract:

"An RESP is an education savings plan sponsored by the government, providing grants and tax-deferral advantages for beneficiaries saving for post-secondary education."

(Reference:Segfunds-E313-2020-12-7ED, Chapter 1.3.11.3 Group Plans and Registered Education Savings Plans​)

Since Caleb is looking for a fund that mirrors the S&P/TSX Composite index, an index fund would be the best choice. Index funds are specifically designed to track the performance of a specific index, providing broad market exposure at a low cost. This aligns with Caleb’s objectives of long-term investment with a strategy that matches a known market benchmark, as emphasized in LLQP’s sections on investment options​.

Other options like equity, dividend, and target date funds do not directly track an index in the way that an index fund does, making them less suitable for Caleb’s stated preference.

Due to Jessica's reduced life expectancy, an impaired life annuity would provide higher monthly payments than a standard life annuity. This type of annuity takes her medical condition intoaccount, offering larger payouts based on a shorter expected payment period. LLQP resources recommend impaired life annuities for individuals with significant health issues, as these provide better income compared to other types​​.

Options A and C offer a fixed period but don’t maximize monthly income for someone with a reduced life expectancy. Option B would provide a standard income for life but not the potentially enhanced income from an impaired annuity.