LLQP Exam Dumps : Life License Qualification Program (LLQP)

Comprehensive and Detailed Explanation From Exact Extract:

The LLQP states that employer-paid premiums for group insurance are fully deductible business expenses. Even if employees contribute a portion (like 25%), the employer’s portion remains tax-deductible. The employee portion is not deductible to the employee.

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

Tied selling—requiring clients to buy one product to get another—is unethical and prohibited under insurance regulations. TheIFSE Ethics and Professional Practice Course (Common Law)states that provincial/territorial regulatory authorities (e.g., Financial Services Commission of Ontario) oversee agent conduct and enforce compliance within their jurisdiction. Callum’s actions fall under their purview. The Canadian Insurance Services Regulatory Organizations (A) is not a specific body, the Canadian Council of Insurance Regulators (C) coordinates but doesn’t enforce, and the Office of the Superintendent of Financial Institutions (D) regulates federal financial institutions, not individual agents. Thus, B is correct.

Lily’s RRSP contribution room is reduced by her DCPP contributions. Her total income for Year 2 was $125,000, and she contributed 5% ($6,250) to the DCPP, matched by the employer, for a total of $12,500. The Pension Adjustment (PA) for her DCPP contribution would be $12,500, which reduces her RRSP contribution room.

Calculation:

RRSP limit based on previous year’s income (18% of $120,000): $21,600

PA reduction: $12,500

Remaining RRSP contribution room for Year 2: $21,600 - $12,500 = $9,100

Including her unused contribution room: $9,100 + $15,000 = $24,100

So, Lily can contribute $24,600 to her RRSP in Year 2​.