LLQP Exam Dumps : Life License Qualification Program (LLQP)

Comprehensive and Detailed in Depth Explanation with Exact Extract from Documents and Guides:

TheIFSE Ethics and Professional Practice Course (Common Law)outlines that provincial/territorial regulatory authorities oversee insurance agents and protect consumers by promoting transparency, enforcing ethical conduct, and facilitating dispute resolution. Monica’s actions (accepting coverage without consent) breach client autonomy and disclosure rules. Regulatory authorities investigate such conduct and refer clients to independent bodies like the OmbudService for Life and Health Insurance for complaints. They don’t reimburse losses (B), organize lawsuits (C), or focus solely on public education and office closures (D). Option A aligns with their role, making it correct.

The Canadian Insurance Services Regulatory Organizations (CISRO) is responsible for administering the regulatory framework for insurance intermediaries across Canada. CISRO works with provincial and territorial regulators to ensure consistent standards and practices for insurance agents, helping maintain public trust and professional integrity within the industry​. Elizabeth is correctly referencing CISRO as the body that manages the regulatory system applicable toinsurance intermediaries​.

This question is a direct application of the time value of money concept—specifically present value (PV)—as taught in the LLQP Segregated Funds and Annuities material. Present value “works backwards from a future date” and answers the question: how much is needed now to achieve a future savings goal. The LLQP text provides the formula:

PV = FV ÷ (1 + interest rate)ⁿ

Here, Davy’s future goal is FV = $200,000, the annual return is 3% (0.03), and the time horizon is n = 10 years. Substituting into the LLQP formula:

PV = 200,000 ÷ (1.03)¹⁰

(1.03)¹⁰ ≈ 1.343916, so:

PV ≈ 200,000 ÷ 1.343916 ≈ $148,818.9, which rounds to $148,819.

Therefore, if Davy has at least $148,819 in his RRSP today and earns an average of 3% per year for the next 10 years with no additional contributions, he should reach approximately $200,000 by age 65.

This aligns exactly with the LLQP explanation that PV calculations are used “to help a person determine how much needs to be saved today to yield a specified pension at a future date.”