LLQP Exam Dumps : Life License Qualification Program (LLQP)

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 Explanation From Exact Extract:

After the 2-year contestability period, the insurer must provefraudulent misrepresentationto void the policy. The LLQP confirms that beyond this period, policies are generally incontestable unless intentional fraud is demonstrated. Gerard’s case does not involve fraud, and thus the policy stands.

Comprehensive and Detailed In-Depth Explanation: Pension funds from a defined contribution plan, upon leaving employment, must follow Quebec’s Supplemental Pension Plans Act (SPPA) and federal tax rules. The $88,000 is “locked-in,” meaning it cannot be cashed out and must be transferred to a Locked-In Retirement Account (LIRA) to preserve its pension status (SPPA,Section 98). A LIRA restricts access until retirement, when it must be converted into a life annuity or Life Income Fund (LIF) by December 31 of the year the holder turns 71 (Income Tax Act, Section 146). Option D correctly identifies the LIRA and LIF/annuity options. Option A (RRSP) applies to non-locked-in funds, not pension benefits. Option B’s “RRIF” is incorrect, as locked-in funds use a LIF in Quebec. Option C (immediate RRIF withdrawal) violates locking-in rules and age requirements. The Ethics manual requires advisors to clarify locked-in fund rules for clients.