- (Topic 5)
(Anthony, 26, wants to invest $500 but be able to cash it in anytime without fees and wants capital protection.
What investment should the insurance agent recommend?)

1. A. An IVIC consisting of a growth fund with a 100% maturity guarantee.
2. B. An IVIC consisting of a bond fund with a deferred sales charge.
3. C. A redeemable guaranteed investment certificate.
4. D. A market-linked guaranteed investment certificate.

Correct Answer: C
Aredeemable GICofferscapital protectionandeasy liquidity(ability to cash out without penalties), making it the best fit for Anthony??s priorities.
Exact Extract:
"Redeemable GICs allow investors to cash in before maturity without significant penalties, while preserving the invested capital."
(Reference:Segfunds-E313-2020-12-7ED, Chapter 1.3.6 Guaranteed Investment Certificates (GICs))

- (Topic 3)
Bachir owns a successful video game business and has 10 employees. The time has come to plan business succession and the eventual sale of the business. Bachir??s nephew Kharim, who shows a real interest in the business, is identified as his successor. Bachir would like to protect his sales price until such time as the business is sold to Kharim, who does not have the funds yet and will need a few years to amass the required amount. Bachir and Kharim consult insurance agent Bianca for advice. What should Bianca propose?

1. A. Disability buyout coverage in the event of Kharim??s disability.
2. B. Business loan protection.
3. C. Key person coverage.
4. D. Disability buyout coverage in the event of Bachir??s disability.

Correct Answer: D
Comprehensive and Detailed Explanation:
Disability buyout insurance funds a buy-sell agreement if the owner (Bachir) becomes disabled, ensuring Kharim can purchase the business at the agreed price (Chapter 5:Insurance to Protect Businesses).
Option A: Incorrect; Kharim??s disability doesn??t affect Bachir??s sale. Option B: Incorrect; no loan is mentioned.
Option C: Incorrect; key person protects business operations, not succession. Option D: Correct; protects Bachir??s sale value if he??s disabled.
Reference: LLQP Accident and Sickness Insurance Manual, Chapter 5:Insurance to
Protect Businesses.

- (Topic 5)
(Laurent, age 45, is married with three children. He has no pension plan but contributes to an RRSP. His insurance agent recommends segregated funds but Laurent worries about losing his money if the insurer encounters financial difficulty. What protection should the agent talk about to reassure Laurent?)

1. A. The protection offered by the Canadian Investor Protection Fund.
2. B. The protection offered by the Investor Protection Corporation.
3. C. The protection offered by the Canada Deposit Insurance Corporation.
4. D. The protection offered by Assuris.

Correct Answer: D
Assurisprotects policyholders against the risk of an insurance company failure. Segregated fund contracts are covered by Assuris guarantees, which ensure continuity of benefits up to certain limits.
Exact Extract:
"Assuris is the not-for-profit organization that protects Canadian policyholders if their life insurance company fails. Benefits related to segregated funds are covered up to certain limits."
(Reference:Segfunds-E313-2020-12-7ED, Chapter 2.1.11 Investor Protection)

- (Topic 5)
(Germaine, a shareholder-manager, already has a group RRSP for her employees. She now wants to establish a second group savings plan that allows employees to withdraw money at any time without additional taxes or penalties.
Which plan fits her needs?)

1. A. ADBPP.
2. B. A group TFSA.
3. C. APRPP.
4. D. ADPSP.

Correct Answer: B
Agroup TFSAallows employees to withdraw fundsat any time without triggering taxes or penalties, meeting Germaine??s requirement perfectly.
Exact Extract:
"TFSAs allow contributions with after-tax dollars and withdrawals at any time without tax penalties, making them ideal for flexible saving plans."
(Reference:Segfunds-E313-2020-12-7ED, Chapter 1.3.11.2 Group Plans)

- (Topic 3)
Li Jun, 50, applies for a $250,000 critical illness (CI) insurance policy with his insurance agent Ming. On the application, Li Jun states that he must take pills daily to manage his hypertension. Aside from this, his health is good. Given his age and hypertension issue, he is worried that the insurer may refuse his application.
What does Ming CORRECTLY advise him?

1. A. The policy will likely be denied.
2. B. The policy will likely be issued with an exclusion.
3. C. The policy will likely be issued with a premium rating.
4. D. The policy will likely be issued with a lower benefit.

Correct Answer: C
Since Li Jun manages hypertension, a common condition that increases the risk profile, insurers frequently apply apremium rating, meaning higher premiums, due to the elevated health risk. Exclusions are less typical for well-managed chronic conditions, and refusal is unlikely for a single, manageable health issue. Given his overall good health otherwise, the insurer is likely to issue the policy with an increased premium to account for the added risk, as per the LLQP guidelines on underwriting for critical illness insurance.