- (Topic 4)
Surjit and Rajbir got married in 2010, and Surjit named Rajbir as the irrevocable beneficiary of his life insurance contract. In 2017, the couple divorced amicably, and Surjit met with his insurance representative, Ivan, to review his plans. Surjit tells Ivan that he would like to keep Rajbir as his beneficiary.
What should Ivan counsel his client to do?

1. A. Surjit does not need to do anything as Rajbir is already the named beneficiary.
2. B. Surjit cannot make any changes to the policy without Rajbir??s consent, as she is the irrevocable beneficiary of his policy.
3. C. Surjit should name a different beneficiary now that he is divorced.
4. D. Surjit should once again designate Rajbir as the beneficiary.

Correct Answer: A
In Quebec, an irrevocable beneficiary designation remains in effect even after a divorce, unless the policyholder takes steps to change it. Because Rajbir is designated as the irrevocable beneficiary, Surjit would require Rajbir??s consent to alter the beneficiary designation. Since Surjit intends to keep Rajbir as the beneficiary, he does not need to take any additional action, as the irrevocable beneficiary status remains in force. Surjit cannot change or remove Rajbir as the beneficiary without her consent, so his current designation remains unaffected by the divorce under LLQP guidelines and Quebec civil code rules on irrevocable beneficiaries.
=================

- (Topic 5)
(Matthew, 40 years old, is leaving his employer (XYZ Corp) and has $100,000 in a group RRSP.
What should Shawn, the advisor, do?)

1. A. Provide Matthew with forms to transfer his group RRSP holdings to an individual RRSP.
2. B. Calculate the commuted value of Matthew??s group RRSP account and arrange transfer to the DPSP.
3. C. Arrange for the transfer of the cash value of Matthew??s group RRSP to the group TFSA.
4. D. Arrange for the transfer of Matthew??s group RRSP to his wife??s group RRSP.

Correct Answer: A
Upon termination of employment, employees cantransfer group RRSP funds to an individual RRSPto maintain tax-deferred growth without triggering a taxable event. Exact Extract:
"Upon leaving employment, a member may transfer their group RRSP assets to an individual RRSP to maintain tax deferral."
(Reference:Segfunds-E313-2020-12-7ED, Chapter 1.3.11.2 Group Plans45:5†Segfunds- E313-2020-12-7ED.pdf**)

- (Topic 2)
Mike and Todd are both agents with Superior Insurance Company. Every Friday, they have lunch together at the local pub. One Friday, Mike forgets his wallet, so Todd pays both bills. Mike has a sales appointment that afternoon, where he will be signing a small term life insurance policy on a child. He decides to simply indicate that Todd is the agent of record so that Todd gets the compensation for the sale—an easy way to pay him back for lunch! What practice is Mike engaging in?

1. A. Tied selling.
2. B. Fronting.
3. C. Churning.
4. D. Misrepresentation.

Correct Answer: B
Comprehensive and Detailed in Depth Explanation with Exact Extract from Documents and Guides:
TheIFSE Ethics and Professional Practice Course (Common Law)describes "fronting" as an unethical practice where an agent allows another agent to be listed as the agent of record for a sale they did not perform, often to share commissions improperly. Mike listing Todd as the agent of record for a sale he completed himself is fronting, done here to repay a personal favor. Tied selling (A) involves conditional sales, churning (C) is policy replacement for commissions, and misrepresentation (D) involves false statements to clients, none of which apply. Fronting undermines fair compensation practices, making B correct.
References:
IFSE Ethics and Professional Practice Course (Common Law), Module 1: Ethics and Professionalism, Section on "Unethical Practices – Fronting."

- (Topic 4)
Alexandre has just become a father. He wishes to take out a life insurance policy from Antoine, an insurance of persons representative. During their meeting, Alexandre mentions his love of mountain climbing. What should Antoine do?

1. A. Warn Alexandre that no insurer covers activities such as mountain climbing, which are considered legal exclusions under the Civil Code of Quebec
2. B. Check and explain the policy??s exclusion clauses, because the insurer could turn down the claim if Alexandre dies while mountain climbing
3. C. Specify that the Charter of Human Rights and Freedoms only allows exclusions based on age, gender, or civil status in insurance contracts
4. D. Explain only the insurance policy??s general coverage clauses

Correct Answer: B
Comprehensive and Detailed In-Depth Explanation: Antoine??s duty as an insurance representative, per the Distribution Act (Sections 16–18) and Civil Code (Article 2408), includes assessing Alexandre??s risk profile and explaining policy terms, especially exclusions. Mountain climbing is a high-risk activity that many insurers exclude or restrict, but this is not a blanket legal exclusion under the Civil Code (contrary to option A). Option B is correct: Antoine must review the specific policy??s exclusion clauses and inform Alexandre that a claim could be denied if death occurs during mountain climbing, ensuring informed consent. Option C misinterprets the Quebec Charter (Sections 10–20), which prohibits discrimination but allows insurers to set risk-based exclusions (private contract freedom, Article 1378). Option D neglects Antoine??s obligation to disclose material exclusions, risking misrepresentation. The Ethics and Professional Practice manual mandates full disclosure of risks and exclusions to uphold client trust and compliance.
References: Distribution Act, Sections 16–18; Civil Code of Quebec, Article 2408; Quebec Charter, Sections 10–20; Ethics and Professional Practice (Civil Law) Manual, Section on Disclosure Duties.
===========

- (Topic 5)
(Nancy has invested $100,000 in mining company stocks in her local area. To which of the following risks is Nancy most exposed?)

1. A. Interest rate risk
2. B. Inflation risk
3. C. Industry risk
4. D. Liquidity risk

Correct Answer: C
By investing heavily in asingle sector(mining), Nancy facesindustry risk. Industry-specific issues such as regulation changes, market conditions, or operational challenges could severely impact her investments.
Exact Extract:
"Industry risk is the risk that factors affecting an entire industry may negatively impact investments within that sector. Concentrating investments in a single industry increases exposure to this type of risk."
(Reference:Segfunds-E313-2020-12-7ED, Chapter 1.4.9 Industry Risk)