IFSE Institute LLQP Exam With Confidence Using Practice Dumps

Comprehensive and Detailed Explanation From Exact Extract:

If Rhonda wants the policy to be used for paying taxes on her estate, naming the estate as the beneficiary is the most appropriate option. The LLQP notes that naming the estate allows the proceeds to directly address estate liabilities, such as taxes, before distribution to heirs.

In the LLQP Segregated Funds and Annuities material, a LIRA (Locked-in Retirement Account) is clearly described as a locked-in, savings-phase vehicle used to hold pension money transferred from an employer-sponsored pension plan when an employee leaves before retirement. A key rule is that withdrawals cannot be made from the locked-in savings account. The curriculum explains that locked-in plans have two phases: a savings phase (LRSP/LIRA) and an income phase (such as LIF/LRIF/PRRIF/RLIF), and only the income-phase accounts permit withdrawals. The text explicitly states that when pension value is transferred into an LRSP/LIRA, the individual gains control over investment choices “except that withdrawals are not allowed.”

That is exactly Stéphane’s situation: his segregated fund investment is held inside a LIRA, meaning the insurer must administer it as locked-in pension money. Even though the segregated fund contract itself has a 10-year term-to-maturity, the maturity date is not the governing restriction here. The governing restriction is the locked-in legislation attached to the LIRA: Stéphane cannot simply “cash in” or redeem the contract to access a lump sum for personal needs such as a divorce settlement.

The LLQP curriculum also notes that unlocking is only permitted in a few specific circumstances (for example, certain cases of financial hardship, shortened life expectancy, or very small balances). Divorce equalization may allow a transfer under family law rules in some jurisdictions, but it does not mean Stéphane can redeem the LIRA for cash on demand; the funds generally remain within locked-in vehicles. Therefore, NRJ Insurance would refuse the redemption request because the assets are locked in.

Accordingly, the correct answer is D: NRJ Insurance cannot carry out the request because the funds are held in a locked-in account and cannot be cashed in right now.

Comprehensive and Detailed In-Depth Explanation: Under the Civil Code of Quebec (Article 2415), a policyholder (or subscriber) is the entity that owns and pays for an insurance or annuity contract, which can be an individual or a legal person like a corporation. Xtra, as a company, can use its retained earnings (unregistered capital) to fund an annuity contract and be designated as the policyholder, making option D correct. Option A is false, as legal persons can own contracts (e.g., group insurance). Option B’s requirement of a registered plan is incorrect—annuities can be funded with non-registered funds. Option C introduces a “subrogated annuitant,” a misnomer here, as the annuitant is the person receiving payments, not a decision-maker, and no such requirement exists. The LLQP and Ethics manual confirm that corporations can be policyholders for business purposes, like key person coverage or investments.