LLQP Exam Dumps : Life License Qualification Program (LLQP)

Comprehensive and Detailed In-Depth Explanation: An insurance contract under Quebec’s Civil Code (Articles 2389–2414) has distinct characteristics. It is a “contract of the utmost good faith”(uberrimae fidei), requiring full disclosure from both parties, especially the insured, about material facts (Article 2408). It is typically a “contract of adhesion,” as insurers offer standard terms with little negotiation (Article 1379), unlike mutual agreement contracts. It is “synallagmatic,” imposing reciprocal obligations—premium payment by the policyholder and coverage by the insurer (Article 1381). It is also “aleatory,” as the outcome depends on an uncertain event, like death or loss (Article 2390). Option C accurately reflects these traits. Option A’s “mutual agreement” suggests negotiation, which is rare in insurance. Option B and D incorrectly state that inaccurate statements are inconsequential—misrepresentations can void a policy (Article 2410)—and B’s “consensual” and D’s “gratuitous” misalign with insurance’s onerous nature (payment for coverage). The Ethics and Professional Practice manual emphasizes advisors’ duty to explain these legal characteristics clearly.

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 Explanation From Exact Extract:

In Canada, the transfer of a life insurance policy from agrandparent to a grandchildisnot tax-deferred. However, transferring first to theparent (John's child)and then from parent to Richard qualifies as atax-free rolloverunder the Income Tax Act, as the child-parent-grandchild chain preserves tax deferral. LLQP outlines this indirect transfer as a compliant tax strategy.