LLQP Exam Dumps : Life License Qualification Program (LLQP)

Comprehensive and Detailed In-Depth Explanation: Under the Distribution Act (Sections 16–18), insurance representatives like Pierre have a duty to act in the client’s best interest by providing clear, accurate information about products, including coverage and exclusions. This aligns with the LLQP’s emphasis on needs-based advising and the Civil Code’s requirement of good faith (Article 1375). Option A correctly outlines Pierre’s responsibility to explain products and exclusions, ensuring Carole makes an informed decision. Option B (handing over brochures without explanation) fails to meet the proactive advisory role mandated by the Ethics and Professional Practice manual, risking misunderstanding. Option C (conference call) is impractical and shifts Pierre’s duty to the insurer. Option D (written questions to the insurer) similarly avoids Pierre’s obligation to directly assist Carole. The manual stresses full disclosure and client education, making A the ethical and legal standard.

When a term life insurance policy is issued with a specific rating based on risk factors, such as Kacey’s former occupation as a firefighter, the premiums are generally fixed and non-negotiable post-issuance. However, Kacey can apply for a new policy, which would consider her current lower-risk occupation and potentially offer lower premiums. She would need to undergo underwriting again. Thus,Option Bis correct, as the existing policy’s premiums cannot be adjusted retroactively to account for her new role​​.

Mohammed’s plan allows him to make contributions that are not tax-deductible, and he is also not taxed on withdrawals, indicating that his employer’s plan is a group TFSA. In a TFSA, contributions are made with after-tax dollars, and withdrawals (including any growth) are tax-free, consistent with the LLQP outline on TFSAs. This is distinct from other retirement accounts, such as RRSPs, which provide tax deductions on contributions but tax the withdrawals as income​​.

Options A, B, and D are incorrect because these plans involve different tax treatments where contributions may be tax-deductible, and withdrawals are generally taxable.