IFSE Institute LLQP Exam Dumps - Actual Questions Answers

Comprehensive and Detailed In-Depth Explanation: Gary’s scheme involves creating a fictional company to fraudulently sell insurance, constituting fraud under the Criminal Code of Canada (Section 380), punishable by up to 14 years imprisonment if Samya participates. Option C reflects this severe legal consequence. Option A (CSF sanctions) applies to ethical breaches within professional conduct, like fines or suspension, but fraud exceeds this scope. Option B (Distribution Act penalties) includes fines up to $175,000 (Section 458), not $1,000,000, and is less severe than criminal charges. Option D (liability insurance) is irrelevant, as it doesn’t mitigate criminal liability. The Ethics manual and LLQP prohibit fraudulent acts, emphasizing criminal repercussions for such schemes.

Comprehensive and Detailed In-Depth Explanation: This scenario involves a barter arrangement where Justin leases Simon’s vehicle in exchange for renovations, requiring classification under Quebec’s Civil Code contract principles (Articles 1378–1424). A “contract by mutual agreement” (or consensual contract) is formed through the mutual consent of both parties, as Justin and Simon negotiate terms directly (Article 1385). It is “synallagmatic” because both parties have reciprocal obligations—Justin provides renovations, and Simon provides the vehicle (Article 1381). It is“onerous” since each party incurs a cost and receives a benefit, distinguishing it from a gratuitous contract (Article 1380). Finally, it is “commutative” because the value of the renovations and vehicle use is presumed equivalent at the outset, with no uncertainty as in aleatory contracts (Article 1382). Option A is incorrect because a “contract of adhesion” involves pre-set terms with no negotiation, and this is not gratuitous. Option C fails as it is not unilateral (only one party obligated) or a consumer contract (a commercial or standard-form transaction). Option D’s “instantaneous performance” is incorrect, as the lease and renovations suggest ongoing obligations. The Ethics and Professional Practice manual underscores advisors’ duty to accurately interpret contract types for clients.

Assuris provides protection to Canadian policyholders, including holders of segregated fund contracts, if their insurance company becomes insolvent. Assuris is a not-for-profit organization that safeguards policyholders by ensuring that they continue to receive guaranteed benefits within specified limits. This organization is essential for maintaining confidence in the Canadian insurance industry, offering peace of mind to policyholders that their segregated fund contracts are protected under such circumstances. Neither the Canadian Deposit Insurance Corporation nor the OmbudService for Life & Health Insurance provides this specific type of insolvency protection for segregated funds​​.