Questions for the LLQP were updated on : Nov 21 ,2025
(Gregory and Vanessa married at an early age and had three children, who are now in their forties:
Eve, Rick and Max. When the couple retired five years ago, they purchased a joint life annuity. They
also had a will drawn up naming the three children as equal beneficiaries of their estate. The will
specifies that Eve will act as executor of the estate.
Last week, Gregory and Vanessa both died in a car accident.
Who could make a death claim as regards the annuity?)
D
(Beth, aged 73, has a RRIF with a current market value of $380,000. The account is managed by her
bank, and Beth has been disappointed with its performance so far. She is therefore thinking of
transferring the RRIF to her insurance company and purchasing a registered annuity with those
funds.
This would be the first time Beth is making an investment outside of the bank environment. She
wonders what kind of information the insurance agent would keep on file to document the
transaction.
To process the application and comply with FINTRAC requirements, which of the following records
would the agent need to create and keep on file?)
D
(Business owner Timothy is reviewing information that his life insurance agent provided for him to
establish a group savings plan for his employees. Timothy then meets the agent for some advice. He
wants to avoid having to deal with pension credit adjustments.
Which of the following types of plans would meet this requirement?)
B
(At 60 years of age, Pierre recently retired for health reasons: he suffers from leukemia and is only
expected to live three or four more years, according to his oncologist. A friend advised Pierre to
purchase an annuity with his RRSP, as he has no immediate family to leave money to and wants a
guaranteed monthly payout.
What type of annuity would be best suited for Pierre?)
A
(Eric, aged 28, currently works for an accounting firm. He still lives with his parents but is saving to
buy a place of his own. Seven years ago, his grandparents gave him a significant cash gift following
his college graduation. He deposited it into a segregated fund that invests in the natural resources
sector. However, real estate prices are rapidly increasing. Eric is concerned that if he does not buy a
place in the next three to five years, it might become altogether unaffordable. In addition, the shares
of the segregated fund he holds have seen a sharp drop in market value two years ago and they have
not recovered yet.Eric questions his current choice of investment and asks his life insurance agent if
he should switch to a different type of segregated fund.
What should the agent recommend?)
C
(Justin purchased a single life annuity contract with no guaranteed period and no survivor benefit. He
is now hospitalized.
If Justin passes away, who could make a claim on behalf of his estate regarding the annuity?)
D
(Matthew, 40 years old, is leaving his employer (XYZ Corp) and has $100,000 in a group RRSP.
What should Shawn, the advisor, do?)
A
(Ted purchased an IVIC 10 years ago. His original deposit was $10,000. The current market value is
$15,500 at maturity.
What will the new maturity guarantee be?)
D
(Jack is starting a new job with group medical, dental, and retirement benefits. He submits his
application but is told he is not immediately eligible.
When might Jack become eligible?)
D
(Jim is buying a life annuity with insurance settlement money due to a disabling accident. He
declines a guarantee period to maximize monthly payments.
Which of the following must the agent be sure to note on the application?)
C
(Helmut, a Canadian resident for 10 years, invests $25,000 in a segregated fund within an RRSP. The
agent processes the transaction without asking for proof of identity.
According to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), what
is the conclusion about the agent’s action?)
C
(Harry, aged 60, recently sold his business and plans to invest $100,000 in segregated equity fund
contracts. He wants to minimize costs but has a family history of early death.
What maturity and death benefit guarantees would be most appropriate?)
B
(Vanessa, a grandmother, wants to set up a savings account for her six-month-old granddaughter
Brienne’s future education, making a lump sum and regular contributions.
Which account is best suited?)
C
(Garry, a 55-year-old self-employed individual with no pension or RRSP savings, wants to make his
money work for him over the next 10 years before retirement.
Which product would be suitable?)
C
(Philip is applying for a segregated fund contract and must choose a sales charge. He does not
foresee needing withdrawals and wants minimal management expenses and no initial reductions or
penalties.
Which form of sales charge would best suit Philip?)
C