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LLQP-Ethics and Professional Practice Questions with
Detailed Verified Answers
Carla tells her client, Janice that she qualifies for an RRSP loan based on her financial standing. The
loan is normally offered at the prime rate. Carla says that she can only offer Janice the loan if Janice
agrees to transfer her RRSP to Carla's financial institution.
What is this deceptive practice called? Ans: ✓ ✓ ✓ Tied Selling- Tied selling involves making the
purchase of one product contingent on the purchase of the other.
Ronnie asks his advisor, Selma, which of these organizations is responsible for developing consistent
standards of qualifications and practice of insurance across all provinces of Canada.
What does Selma tell Ronnie? Ans: ✓ ✓ ✓ Canadian Insurance Services Regulatory Organizations
(CISRO)
June, a 60-year-old woman, purchases a life insurance policy on her life and designates her son,
Jake, as the irrevocable beneficiary. Which of the following statements is true about the rights of
June and Jake? Ans: ✓ ✓ ✓ Jake's consent will be required if June wishes to withdraw policy cash
Elvin is an insurance agent advising his new client, Sam on transferring his RRSP account to a
segregated fund. When asked for his identification and social insurance number (SIN), Sam acts
suspiciously and says he does not have his identification with him, and that he does not remember
his SIN. However, he agrees to provide his SIN over the phone. He does provide the necessary
details of the account from which the funds are to be transferred. Should Elvin report this as a
suspicious transaction to the Financial Transactions and Reports Analysis Centre of Canada
(FINTRAC)? Ans: ✓ ✓ ✓ Elvin should not report because the client is purchasing a registered
product.
Angelo purchases a registered annuity contract form XYZ Insurers, through his agent. His immediate
family comprises of his wife and a son. Which of the following is true about the parties involved in
Angelo's annuity contract? Ans: ✓ ✓ ✓ Angelo will be the policyholder, the annuitant, and the
payee.
© Get it right 2025 Getaway - Stuvia US All rights reserved
LLQP-Ethics and Professional Practice Questions with
Detailed Verified Answers
Carla tells her client, Janice that she qualifies for an RRSP loan based on her financial standing. The
loan is normally offered at the prime rate. Carla says that she can only offer Janice the loan if Janice
agrees to transfer her RRSP to Carla's financial institution.
What is this deceptive practice called? Ans: ✓ ✓ ✓ Tied Selling- Tied selling involves making the
purchase of one product contingent on the purchase of the other.
Ronnie asks his advisor, Selma, which of these organizations is responsible for developing consistent
standards of qualifications and practice of insurance across all provinces of Canada.
What does Selma tell Ronnie? Ans: ✓ ✓ ✓ Canadian Insurance Services Regulatory Organizations
(CISRO)
June, a 60-year-old woman, purchases a life insurance policy on her life and designates her son,
Jake, as the irrevocable beneficiary. Which of the following statements is true about the rights of
June and Jake? Ans: ✓ ✓ ✓ Jake's consent will be required if June wishes to withdraw policy cash
Elvin is an insurance agent advising his new client, Sam on transferring his RRSP account to a
segregated fund. When asked for his identification and social insurance number (SIN), Sam acts
suspiciously and says he does not have his identification with him, and that he does not remember
his SIN. However, he agrees to provide his SIN over the phone. He does provide the necessary
details of the account from which the funds are to be transferred. Should Elvin report this as a
suspicious transaction to the Financial Transactions and Reports Analysis Centre of Canada
(FINTRAC)? Ans: ✓ ✓ ✓ Elvin should not report because the client is purchasing a registered
product.
Angelo purchases a registered annuity contract form XYZ Insurers, through his agent. His immediate
family comprises of his wife and a son. Which of the following is true about the parties involved in
Angelo's annuity contract? Ans: ✓ ✓ ✓ Angelo will be the policyholder, the annuitant, and the
payee.
© Get it right 2025 Getaway - Stuvia US All rights reserved
