IFSE Institute LLQP Value Pack (Frequently Bought Together)

Group insurance and group annuity representative Zaheb recently sold a group insurance contract to Alumo Inc., a company that employs about 50 plant employees. This is the first time the company offers such a plan.
The employees are asking the company questions about how the prescription drug plan works. They are especially surprised to see that the plan covers very few of the brand name drugs often prescribed by their physicians. What should Zaheb do?

• A. Put an employee information program in place to explain the rules of the prescription drug plan.
• B. Recommend that the employees consult the Medical Information Bureau's (MIB) official website, which explains how prescription drug plans work.
• C. Let Alumo answer its employees' questions about the prescription drug plan because it is best placed to understand their concerns.
• D. Notify the insurer because it alone is able to explain the prescription drug plan rules to the employees.

A few months ago, Urmish filed a complaint to the Autorite des marches financiers (AMF) about the services he received from his insurance agent, Jaba. The complaint was heard by the discipline committee, and Jaba was found guilty and ordered to pay a $10,000 fine. Jaba is upset and does not agree with the verdict. She would like to appeal the verdict.
Which of the following statements is CORRECT?

• A. A decision made by the discipline committee may be appealed to the AMF.
• B. A decision made by the discipline committee may be appealed to the Chambre de la securite financiere (CSF).
• C. A decision made by the discipline committee cannot be appealed.
• D. A decision made by the discipline committee may be appealed to the Court of Quebec.

(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?)

• A. ADBPP.
• B. APRPP.
• C. A group TFSA.
• D. ADPSP.

Six years ago, Stephane left his job as technical director at ADM Consultants in order to branch out on his own. He transferred the $48,000 pension amount accumulated under his former employer's pension plan into a LIRA, investing it in a balanced segregated fund (within a contract with a 10-year term-to-maturity) offered by NRJ Insurance. Now 38, Stephane is going through a divorce and would like to redeem his segregated funds contract in order to pay part of what he owes his ex-wife.
What will NRJ Insurance do in this situation?

• A. NRJ Insurance will liquidate the fund units and pay Stephane the full amount obtained.
• B. NRJ Insurance will liquidate the fund units and pay Stephane the amount obtained, minus the applicable income taxes.
• C. NRJ Insurance will not be able to carry out the request. Since the funds are held in a locked-in account, Stephane cannot cash them in right now.
• D. NRJ Insurance will not be able to carry out Stephane's request at this time because there are four years left to go before the contract matures.

Kerry is 52 years old and he is purchasing additional coverage on his individual disability income insurance policy using a future purchase option. His income has increased about 35% since he took out the policy four years ago. What is Kerry guaranteed to receive as a result of the rider?

• A. An increased benefit according to the policy when medical insurability is proven.
• B. An increased benefit based on Kerry's income at the time of disability.
• C. An increased benefit according to the policy when Kerry provides proof of income.
• D. An automatic 35% increase in benefit.