LLQP Curriculum - Revised March 2014

CURRICULUM
Life License Qualification Program (LLQP)

March 2014
LLQP
Presentation of the Curriculum
As part of the initiative of the Canadian Insurance set. Each module was then reviewed and reworked have been selected for evaluation through licensing
Services Regulatory Organizations (CISRO) to by SMEs in order to confirm that the scope and exams, as opposed to the Profile, that includes
harmonize the Canadian life insurance qualification structure of the contents it presented were competencies illustrating the full scope of tasks and
process (including group insurance), a Competency appropriate. operations that can be accomplished by an agent
Profile was drafted in order to list, as competencies, upon career entry. As such, the Curriculum includes
the compiled tasks and operations that a life Because this document constitutes the cornerstone every aspect that must be mastered to practice
insurance agent can accomplish upon career entry. of the LLQP, a survey was drawn up to evaluate ethically, in accordance with consumer rights. It also
Following its publication, committees of subject global appreciation for its scope and relevance. takes into consideration the fact that many
matter experts (SMEs) were formed in order to Consultation occurred in French and English and competencies are perfected over time, with practical
derive an evaluation program from the Profile. As was open to all from October 11 to November 15, experience.
such the Life License Qualification Program (LLQP) 2013 by way of a link posted on the CISRO website.
Curriculum is a collection of evaluation tables Each evaluated competency corresponds to a
targeting the elements that are to be evaluated in Changes to the Curriculum were made based on module and all modules are equally weighted in the
the course of the licensing process. identifiable trends among respondents’ feedback. licensing process – i.e. all competencies must be
Modifications were limited to minor adjustments to mastered in order to obtain a license to practice.
The committees brought together agents and content lists and weightings, except for the Law, Consequently, CISRO will impose a modular
trainers from many provinces and included ethics and taxation modules, where more important licensing exam and will publish standardized study
candidates having participated in the occupational reorganizations have served to better contextualize material for each of the Curriculum’s modules.
analysis workshops (OAWs) held in 2012. By filling the importance of taxation for new life insurance
out questionnaires and participating in agents. Product-specific tax concepts have been To reflect the structure of the Competency Profile,
teleconferences, these SMEs were given the integrated into the three product-related modules individual and group insurance (including group
opportunity to analyze, evaluate and improve the and the remaining modules now cover only ethics annuities) have been addressed together.
evaluated competencies’ relevance, structure and and professional practice. Their titles have been Therefore, there is no module specifically devoted to
scope. Contents relating to each competency were adjusted accordingly. group insurance. This structure stems from the
also determined. information gathered during the OAWs regarding the
The competencies presented in the Curriculum stem similarities in the skills required to practice in both
Following these consultations, the Curriculum’s from the Competency Profile but they are not those sectors. Accordingly, the editing team has
contents were further analyzed in order to group reproduced integrally and textually. In fact, only defined the term “client” in an inclusive manner; it
them logically and the Curriculum’s modules were those competencies that relate to CISRO’s mandate may refer to an individual, a group or an employer.
The Curriculum’s competencies are integrated And so, each of the Curriculum’s modules is divided
groups of skills, knowledge, and strategies. They into three main parts:
allow candidates to develop their professional
practice in accordance with regulators’ requirements • The weighting indicates an element’s
for the life agent occupation. relative importance in the exam, which will
translate into a corresponding number of
Every competency is split into components and then questions (orange column).
further, into sub-components, in order for its nature • The competency components and
and scope as well as the underlying evaluation competency sub-components define the
objective to be explicit. Competency components competency’s nature and scope (blue
are weighted to quantify their relative importance in columns).
the exam. Many factors influence weighting, namely • The related contents specify the object of
the component’s importance for consumer the evaluation and will be addressed in the
protection as well as the complexity and scope of its study material (green columns).
underlying concepts and contents.
Due to the information it provides, the Curriculum is
Moreover, the components and sub-components at once:
refer to processes or results. They may be
formulated identically for different competencies, yet • An internal tool that will provide the
each one is contextualized based on the framework for the development of study
competency to which it refers. material, exam questions and licensing
exams;
To provide further specifications, a list of related • A pedagogical planning tool that will guide
contents is included with each competency sub- trainers in their course development;
component. The contents offer indications on the • An exam preparation tool that will instruct
products, knowledge, behaviors or attitudes required candidates on the nature and scope of the
to master the competency sub-component. These evaluated competencies.
indications delimit the scope of evaluation and will
be developed in the study material that will be
published by CISRO for each module. Additional
contents may be addressed by trainers wishing to
increase their candidates’ employability and ability
to advance professionally.
CURRICULUM – LLQP
MODULE: Ethics and professional practice
Competency: Develop an ethical professional practice, in compliance with the rules governing the life insurance 1 sector
% COMPETENCY COMPONENTS
60 1. Integrate into practice the legal aspects of insurance and annuity contracts
1.1. Delimit the legal framework governing life insurance
1.2. Characterize the parties involved in the contract
1.3. Contextualize the rules relating to the contract’s formation, taking effect, reinstatement and termination
1.4. Explain the main provisions and clauses of an insurance or annuity contract
1.5. Integrate into practice the rules relating to beneficiary designation and exemption from seizure of benefits
1.6. Contextualize the rules relating to claims and the payment of benefits
40 2. Integrate into practice the rules governing the activities of life insurance agents
2.1. Explain the role of the organizations that protect consumers
2.2. Integrate into practice the obligations and responsibilities of life insurance agents
1
In the context of the ethics and professional practice module of the Curriculum, the term « life insurance » is used to refer broadly to all categories of individual and group insurance of persons, namely: life insurance, accident and sickness insurance
(living benefits), individual variable insurance contracts (IVICs) (segregated funds), and annuities.
COMPETENCY: DEVELOP AN ETHICAL PROFESSIONAL PRACTICE, IN COMPLIANCE WITH THE RULES GOVERNING THE LIFE INSURANCE SECTOR
% COMPETENCY COMPONENTS COMPETENCY SUB-COMPONENTS CONTENTS
60 1. Integrate into practice the legal 1.1 Delimit the legal framework governing life Overview of major legal principles Other important statutes
aspects of insurance and annuity insurance • Sources of law • Personal Information Protection and Electronic Documents Act (PIPEDA)
contracts • Persons, family and estate • Human rights codes
- Natural persons, partnerships and corporations • Criminal Code
- Capacity, age of majority and the 16 years old rule in life and accident and sickness - Forgery and fraud
insurance • Proceeds of crime (Money laundering) and Terrorist Financing Act and Financial
- Marriage and marriage contract Transactions and Reports Analysis Centre of Canada (FINTRAC)
- Family property • National Do Not Call List (DNCL)
- Divorce and separation • An Act to promote the efficiency and adaptability of the Canadian economy by
regulating certain activities that discourage reliance on electronic means of carrying out
- Common-law spouse
commercial activities, and to amend the Canadian Radio-television and
- Succession (estate) wills, certificate of estate trustee with a will (probate), certificate of Telecommunications Commission Act, the Competition Act, the Personal Information
estate trustee without a will (administration) Protection and Electronic Documents Act and the Telecommunications Act (anti-spam)
- Trust
• Contracts
- Contracts in general
- Conditions required for the validity of the contract
- Agency, power of attorney, living will (enduring or continuing power of attorney)
- Property and casualty vs. life and accident and sickness insurance contracts
- Annuity contract
• Torts
• Limitation periods
Ethics and professional practice

Public insurance and pension plans
• Social and tax legislation and economic and social aspects of insurance
• Federal public plans
- Employment Insurance (EI)
- Old Age Security Program (Old Age Security (OAS), Guaranteed Income Supplement
(GIS), Allowance)
- Canada Pension Plan (CPP) (pension and disability benefits)
• Provincial public plans
- No-fault automobile insurance plan
- Worker’s compensation plan
- Public health, hospital and drugs plans
• Coordination of benefits between public and private insurance and pension plans
3
COMPETENCY SUB-COMPONENTS CONTENTS
1.2 Characterize the parties involved in the Parties involved in the contract
contract • Insurer, policyholder (individual insurance) or member (group insurance), • Rights of parties under the contract
insured, beneficiary, contingent policyholder and contingent beneficiary • Special cases
• Types of beneficiaries - Minors (guardians)
- Revocable - Trustee
- Irrevocable - Authorized representative
Life insurance Accident and sickness insurance Segregated funds and annuities
Beneficiary’s specific features in critical illness (CI) Some parties’ specific features in annuity contracts
insurance • Annuitant (life insured)
• Beneficiary (critical illness) • Insurer
• Payee (annuity grantee)
1.3 Contextualize the rules relating to the Rules relating to the formation, taking effect, reinstatement and termination of individual Group insurance contracts
contract’s formation, taking effect, contracts • Determination of the group and eligibility
reinstatement and termination • Rules relating to the formation of contracts • Representation of group
- Insurance application and its acceptance • Types of group insurance
- Insurance policy - Workplace group insurance

- Payment of first premium - Insurance offered through professional corporations and associations
- Covering note and temporary insurance - Group creditor insurance
• Insurable interest • Rules relating to the formation of contracts
• Duty to disclose (change in insurability and consequences for client and his/her assigns in - Insurance application and its acceptance
case of fraud, misrepresentation or concealment) - Certificate or booklet and distribution of certificates by the policyholder
• Effective date and continuation in force of contract • Enrolment process and coverage of dependents
• Absolute assignment and collateral assignment • Laws applicable to member (residence)
• Cancellation and termination (grace period) • Term of group insurance contract
• Reinstatement - Renewal of master policy
- Termination of master policy
- Conversion rights upon end of life insurance protection (CLHIA Guideline G3)
- Incidence of change of insurer
• Termination
Some specific features in accident and sickness Some specific features in annuity contracts
insurance • Immediate or deferred annuity (payment and accumulation)
• Effective date • Life or term annuity deemed to be life insurance
• Termination notice
4
1.4 Explain the main provisions and clauses Major provisions and terms of individual insurance contracts Specific provisions concerning group insurance
of an insurance or annuity contract • General provisions • Content of the certificate or other document given to members
• Statutory conditions • Statutory conditions
• Exclusion, limitations and reduction provisions
- Distinction between reduction and exclusion
- Legal and contractual exclusions
- Pre-existing conditions
- Suicide clause
• Contract amendments (riders)
• Cash surrender value (CSV)
• Policy loans
Specific provisions concerning accident and Specific provisions concerning segregated funds and
sickness insurance annuities
• Statutory conditions • Withdrawal and surrender rights
• Nature of coverage • Various accumulation annuity products such as:
- Disability insurance - Annuity contracts backed by segregated funds (individual
- Drug insurance multijurisdiction variable insurance contracts (IVICs) and CLHIA Guidelines)
- Critical illness (CI) insurance (premium refund) - Guaranteed investment account (GIA)-type contracts
and long term care(LTC) (insurance company general funds)

- Accidental death and dismemberment (AD&D) - Registered annuity contracts: registered retirement savings
plan (RRSP), tax-free savings account (TFSA), registered
retirement income fund (RRIF) and life income fund (LIF),
locked-in retirement account (LIRA) and non-registered
contracts
• Specific provisions concerning group annuity contracts
- Defined benefit pension plan (DBPP)
- Defined contribution pension plan (DCPP)
- Specific types of defined contribution pension plans: pooled
registered pension plan (PRPP)
- Group RRSP, deferred profit-sharing plan (DPSP), group
tax-free savings account (TFSA)
- CLHIA Guidelines for Capital Accumulation Plans
- Transfer instruments: locked-in retirement account (LIRA),
life income fund (LIF) and annuity contract
5
1.5 Integrate into practice the rules relating to Beneficiary designation, succession and exemption from seizure
beneficiary designation and exemption • Authority to designate (power of attorney) • Minor as a beneficiary
from seizure of benefits • Means of designating a beneficiary and filing with insurer - Trustee for minors
• Contingent beneficiary or multiple beneficiaries - Beneficiary under disability
• Effects of designation • Revocation of beneficiary
• Consequences of conjugal breakdown for a spousal beneficiary (separation, divorce, • Exemption from seizure resulting from beneficiary designation
annulment of marriage)
Specific features in accident and sickness insurance Specific provisions concerning annuity contracts
• Beneficiary (right to designate) • Bankruptcy and Insolvency Act (exemption from seizure) –
RRSP, RRIF, DPSP
• Division of family property
Specific features in supplemental pension plans

• Supplemental pension plan exemption from seizure
• Death benefit and exemption from seizure of locked-in
retirement account (LIRA) and life income fund (LIF)

1.6 Contextualize the rules relating to claims Rules pertaining to claims and payment of benefits
and the payment of benefits • Notice of claim
• Other documents required (e.g. death certificate, medical records)
• Delay to pay benefits
• Specific case: attempt on insured’s life
Specific features of health and accident insurance Payout annuities

• Specific features of health/accident insurance (timelines) • Annuity with a guarantee period
• Documents required (e.g.: physician’s statement for
disability claims) Supplemental pension plans
• Death benefit before retirement
• Death benefit after retirement
6
40 2 Integrate into practice the rules 2.1 Explain the role of the organizations that Regulatory, disciplinary and consumer protection agencies for life insurance
governing the activities of life protect consumers • Provincial and territorial insurance regulators
insurance agents • Canadian Insurance Services Regulatory Organizations (CISRO)
• Canadian Council of Insurance Regulators (CCIR)
• Canadian Life and Health Insurance Association (CLHIA)
• Assuris
• Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
• Ombudsman for Life and Health Insurance
2.2 Integrate into practice the obligations and Distinctions between banking, securities and insurance products: Registration of agent and agencies
responsibilities of life insurance agents regulators and licensing rules • Agent certification
• Difference with banking and securities • Agency certification
• Practice within scope of licence • Managing General Agent (MGA)
• Financial planners in some provinces
Agent’s responsibilities Deceptive practices

• Contract delivery • Tied selling
- Ensure no change in health status since the application was signed • Churning
- Extra premium • Policy rebates
- Reduced insurer’s commitments and discrepancies • Traffiking of insurance

• Canadian Council of Insurance Regulators (CCIR) 3 principles • Twisting
• Understanding client needs • Inducing
• Duty to act in good faith • Fronting
• Conducting business with integrity • Misrepresentations
• Avoiding conflict of interest • Coercing
• Practicing within scope of abilities; explain illustration • Forgery
• Commission sharing rules • Fraud
• Replacement disclosure • Holding out
• Documenting the file • Incomplete comparisons
• Liability insurance, errors and omissions and embezzlement
7
CURRICULUM – PQAP
MODULE: Ethics and professional practice (Québec)
Competency: Develop an ethical professional practice, in compliance with the rules governing the insurance of persons 1 sector
20 1. Understand the legal framework governing insurance of persons
1.1 Define the provisions of the Civil Code of Québec applicable to insurance of persons
1.2 Define the other sources of law applicable to insurance of persons
40 2. Integrate into practice the legal aspects of insurance and annuity contracts
2.1 Characterize the parties involved in the contract
2.2 Contextualize the rules relating to the contract’s formation, taking effect, reinstatement and termination
2.3 Explain the main provisions and clauses of an insurance or annuity contract
2.4 Integrate into practice the rules relating to beneficiary designation and exemption from seizure of benefits
2.5 Contextualize the rules relating to claims and the payment of benefits
40 3. Integrate into practice the rules governing the activities of representatives in insurance of persons
3.1 Explain the role of the organizations that protect consumers
3.2 Integrate into practice the duties and obligations set out in the Code of ethics of the Chambre de la sécurité financière
3.3 Integrate into practice the obligations and responsibilities of representatives in insurance of persons
1
In the context of the ethics and professional practice module of the Curriculum, the term “insurance of persons” is used to refer broadly to all categories of individual and group insurance of persons products, namely : life insurance, accident and
sickness insurance (living benefits), individual variable insurance contracts (IVICs) (segregated funds), and annuities.
COMPETENCY: DEVELOP AN ETHICAL PROFESSIONAL PRACTICE, IN COMPLIANCE WITH THE RULES GOVERNING THE INSURANCE OF PERSONS SECTOR
20 1. Understand the legal framework 1.1 Define the provisions of the Civil Code of Overview of important Civil Code of Québec provisions for insurance of persons
governing insurance of persons Québec applicable to insurance of representatives
persons • Sources of law • Contracts
• Persons, family and successions - Contract in general
- Legal and natural persons - Conditions required for the validity of the contract
- Capacity - Contract of adhesion and external clause
- Marriage and civil union - Mandate (including the mandate in anticipation of incapacity)
- Matrimonial regimes - Insurance of persons and damage insurance contracts
- Family patrimony - Annuity contract
- Divorce and separation from bed and board • Civil liability
- De facto spouses • Prescription
- Successions
Ethics and professional practice (Québec)

1.2 Define the other sources of law applicable Other important legislation for the insurance representative Public insurance and pension plans
to insurance of persons • An Act respecting the distribution of financial products and services (LDPSF) • Social and tax legislation and economic and social aspects of insurance
• An Act respecting the Protection of personal information in the private sector • Federal public plans
• Canadian and Québec Charter of human rights and freedoms - Employment insurance
• Proceeds of Crime (Money Laundering) and Terrorist Financing Act and FINTRAC - Old Age Security Program (Old Age Security (OAS), Guaranteed Income
- Criminal Code: fraud and forged signature Supplement (GIS), the Allowance)
• National Do Not Call List (DNCL) • Québec public plans
• An Act to promote the efficiency and adaptability of the Canadian economy by regulating - Société de l’assurance automobile du Québec (SAAQ)
certain activities that discourage reliance on electronic means of carrying out commercial - Régie des rentes du Québec (RRQ)
activities, and to amend the Canadian Radio-television and Telecommunications - Commission de la santé et de la sécurité du travail (CSST)
Commission Act, the Competition Act, the Personal Information Protection and Electronic - Indemnisation des victimes d’actes criminels (IVAQ)
Documents Act and the Telecommunications Act (anti-spam) - Québec Parental Insurance Plan (QPIP)
- Régie de l’assurance maladie du Québec (RAMQ) (Drug insurance, Health
insurance, Hospital insurance)
• Coordination of benefits between public and private insurance and pension plans
3
40 2. Integrate into practice the legal 2.1 Characterize the parties involved in the Parties to the contract
aspects of insurance and annuity contract • Insurer, policyholder (individual insurance) or member or participant (group insurance),
contracts insured, beneficiary, contingent policyholder and contingent beneficiary
• Types of beneficiaries
- Revocable
- Irrevocable
• Rights of parties under the contract
• Policyholders – specific cases
- Minors (guardians)
- Trustee
- Authorized representative

Beneficiary’s specific features in critical illness (CI) Some parties’ specific features in annuity contracts
insurance • Annuitant (life insured)
• Beneficiary (critical illness) • Debtor (insurer)
• Annuitant
4
2.2 Contextualize the rules relating to the Rules relating to the formation, entry into force, reinstatement and termination of Group insurance contract
contract’s formation, taking effect, individual contracts • Determination of group and eligibility (Civil Code of Québec, RARI, Act respecting
reinstatement and termination • Rules relating to the formation of contracts Prescription drug insurance and the Quebec Charter of human rights and freedoms)
- Insurance application and its acceptance • Representation of group (representation of client, rules of agency in respect of client,
- Insurance policy client’s duty to disclose)
- Payment of first premium • Types of group insurance
- Covering note and interim insurance - Workplace group insurance
• Insurance interest - Insurance offered through professional corporations and associations
• Initial declaration of risk by client and consequences for client and his/her assigns in - Group insurance without a representative offered to consumers on savings and credit
case of fraud, misrepresentation or concealment via distribution guide (life and health/accident insurance offered by non-licensed
• Change in insurability distributors: banks and credit unions (mortgages), automobile dealerships)
• Entry into force and continuation in force of contract • Rules relating to the formation of group insurance contracts
• Assignment and hypothecation - Insurance application and its acceptance
• Cancellation and termination (grace period) - Insurance policy, certificate and distribution of certificates by policyholder
• Reinstatement • Enrolment process and coverage of dependents
• Laws applicable to participant (residence)
• Term of group insurance contract

- Renewal of the master policy
- Termination of the master policy (RARI)
- Rights upon end of life insurance protection (RARI)
- Incidence of change of insurer
• Termination
Some specific features in accident and sickness insurance Some specific features in annuity contracts
• Entry into force • Immediate or deferred annuity (payment and accumulation)
• Termination notice • Life or term annuity deemed to be life insurance
• An Act respecting Prescription drug insurance
5
2.3 Explain the main provisions and clauses Major provisions and terms of individual insurance contract Specific provisions concerning group insurance
of an insurance or annuity contract • General provisions • Policy and certificates: divergences
• Provisions of public order
• Divergences between policy and application
• Exclusion and coverage reduction provisions
- Distinction between reduction, limitation and exclusion
- Legal and contractual exclusions
- Pre-existing conditions
- Suicide clause
• Contract amendments (riders)
• Cash value
• Advances

Specific provisions concerning accident and Specific provisions concerning segregated funds and annuities
sickness insurance • Specific provisions concerning the annuity contract (Civil Code and an
• Nature of coverage Act respecting Insurance)
- Disability insurance • Redemption rights
- Drug insurance: An Act respecting Prescription • Various accumulated annuity products such as:
drug insurance - Annuity contracts backed by segregated funds (individual variable
- Critical illness insurance (premium refund) and insurance contracts (IVICs) and AMF guidelines
long term care - Guaranteed Investment Account (GIA)-type contracts (insurance
- Accidental death and dismemberment (AD&D) company general funds)
- Registered annuity contracts: RRSP, TFSA, RRIF and LIF, LIRA
and the non-registered contracts
• Specific provisions concerning group annuity contracts
- Defined benefit pension plans (DBPP)
- Defined contribution pension plans (DCPP)
- Specific types of defined contribution pension plans: simplified
pension plan (SIPP) and voluntary retirement savings plan (VRSP)
(also pooled registered pension plan (PRPP))
- Group registered retirement savings plan (RRSP), deferred profit-
sharing plan (DPSP), group tax-free savings account (TFSA)
- CLHIA Guidelines for Capital Accumulation Plans
- Transfer instruments: locked-in retirement account (LIRA), life
income fund (LIF) and annuity contract
6
2.4 Integrate into practice the rules relating to Beneficiary designation, succession and exemption from seizure
beneficiary designation and exemption • Authority to designate and mandatary’s authority • Consequences of conjugal breakdown for a spousal beneficiary (separation from bed and
from seizure of benefits • Contingent beneficiary or multiple beneficiaries board, divorce after 1982, annulment of marriage)
• Rules concerning designation of beneficiary: presumption in favour of the spouse, • Minor as a beneficiary / incapable
whether married or in a civil union • Revocation of beneficiary
• Means of designating a beneficiary (designation in insurance contract, designation in • Exemption from seizure resulting from beneficiary designation (relationship with policyholder
a written instrument other than a will, communication to insurer for the purpose of or participant in group insurance)
setting up)
Specific features in accident and sickness insurance Specific provisions concerning annuity contracts
• Beneficiary (right to designate) • Bankruptcy and Insolvency Act (exemption from seizure) – RRSP,
• Exemption from seizure of benefits (disability insurance) RRIF, DPSP
• Effects of partition of family patrimony

Specific features in supplemental pension plans
• Supplemental pension plan exemption from seizure
• Death benefit and exemption from seizure of locked-in retirement
account (LIRA), and life income fund (LIF)
2.5 Contextualize the rules relating to claims Rules pertaining to claims and payment of benefits
and the payment of benefits • Notice of claim
• Other documents required (e.g., death certificate, medical records)
• Time the insurer has to pay benefits
• Specific case: attempt on insured’s life
Specific features of health/accident insurance Supplemental pension plans

• Specific features of health/accident insurance (timelines, • Death benefit before retirement
documents required as evidence) • Death benefit after retirement
• Other documents required (e.g., physician’s statement for
disability claims) Immediate annuities
• Guaranteed period annuity
7
40 3. Integrate into practice the rules 3.1 Explain the role of the organizations that Regulatory, disciplinary and consumer protection agencies for insurance of
governing the activities of protect consumers persons • Autorité des marchés financiers
representatives in insurance of • Canadian Insurance Services Regulatory Organizations (CISRO) • Chambre de la sécurité financière
persons • Canadian Council of Insurance Regulators (CCIR) • Fonds d’indemnisation des services financiers
• Canadian Association of Pension Supervisory Authorities (CAPSA) • Institut québécois de planification financière
• Joint forum • Assuris
• Canadian Life and Health Insurance Association (CLHIA) (guidelines) • Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
• Office of the Privacy Commissioner of Canada • Ombudsman for Life and Health Insurance
• Commission d’accès à l’information (CAI)
3.2 Integrate into practice the duties and General Registration of insurance representatives and insurance firms

obligations set out in the Code of ethics of • Restricted occupations • Representative’s certification (including distinction between licenses)
the Chambre de la sécurité financière • Availability requirement • Firm, independent representative and independent partnership registration
• Titles /representation / client soliciting
• Tied selling Representative’s responsibility
• Remuneration, commission sharing and other benefits: competitions / promotions
• Collection of payments: distinct account
• Liability insurance
Representative in insurance of persons Representative in group insurance

• Needs analysis • Mandate
• Information notice on products • Needs analysis
• Contract delivery • Recommendation
- Ensure no change in health status since the application was signed
- Extra premium
- Reduced insurer’s commitments and divergences
• Policy replacement
Firm Financial planner

• Definition • Definition of financial planner
• General obligations • Disclosure of remuneration
• Titles • Titles
• Advertising and representations • Mandate and reporting
• Responsibility
• Client file management
• Records management
• Complaint settlement
• Commission sharing
• Liability insurance
8
Independent partnership Independent representative

• Definition • Definition
• General obligations • General obligations
• Titles • Titles
• Advertising and representations • Advertising and representations
• Client file management • Client file management
• Records management • Records management
• Complaint settlement • Complaint settlement
• Commission sharing • Commission sharing
• Liability insurance • Liability insurance
Distinction between bank products, securities and insurance, regulating

agencies and licensing rules
• Difference with bank products and securities
• Respect of the limits of registration

3.3 Integrate into practice the obligations and Ethics and conduct of representatives in insurance of persons, group insurance
responsibilities of representatives in of persons and health/accident insurance
insurance of persons • Code of ethics of the Chambre de la sécurité financière (CSF)
- Duties and obligations towards the public
- Duties and obligations towards clients
- Duties and obligations towards other representatives
- Duties and obligations towards firms and financial institutions
- Duties and obligations towards insurers
- Duties and obligations towards the profession
9
CURRICULUM – LLQP
MODULE: Life insurance
Competency: Recommend individual and group life insurance products adapted to the client’s needs and situation
35 1. Assess the client’s needs and situation
1.1 Determine the client’s situation
1.2 Assess the appropriateness of the client’s existing coverage in regards to his or her situation
1.3 Articulate the client’s needs based on the risks that could affect his or her financial situation
30 2. Analyze the available products that meet the client’s needs
2.1 Analyze the types of contracts that meet the client’s needs
2.2 Analyze the riders that meet the client’s needs
25 3. Implement a recommendation adapted to the client’s needs and situation
3.1 Consider the impact of underwriting criteria as they apply to the client’s situation
3.2 Propose a recommendation adapted on the client’s needs and situation
3.3 Confirm the requirements that must be met to implement the recommendation
10 4. Provide customer service during the validity period of the coverage
4.1 Validate the appropriateness of contract amendment, renewal and termination applications in regards to the client’s situation
4.2 Inform the claimant of the claims process

COMPETENCY: RECOMMEND INDIVIDUAL AND GROUP LIFE INSURANCE PRODUCTS ADAPTED TO THE CLIENT’S NEEDS AND SITUATION
35 1 Assess the client’s needs and situation 1.1 Determine the client’s situation Personal situation Financial situation
• Family dynamics, particularly on-going dependency relationships • Current and future income
- Spouse or common-law partner • Current and future expenses
- Support obligations to ex-spouse or common-law partner (or multiple ex- • Assets (liquid and fixed assets)
spouses) • Liabilities (including payment terms)
- Minor children • Capital expenses arising upon death
- Adult dependents - Funeral expenses
- Stay-at-home parent or caregiver - Income taxes
- Blended family - Debt repayment
• Lifestyle risks - Setting up education or legacy funds
- Dangerous hobbies - Charitable donations
• Occupation • Additional resources available upon death
- Regular employment vs. self-employed - Existing life insurance policies
- Job stability - Lump-sum payment from an employment pension or guaranteed annuity
- Current income and future income potential
- Time to retirement
• Tax exposure of client, spouse and other beneficiaries
Group client’s situation

• Types of group plans (employer, association)
• Conditions of membership
• Vulnerability to termination
LIife insurance
3
1.2 Assess the appropriateness of the client’s Individual life insurance Tax implications of existing policies
existing coverage in regards to his or her • Coverage details • Consumer value of 1982 and 2015 grandfathering rules
situation - Type of policy • Cash value relative to adjusted cost basis (ACB) as the policy matures
- Policyholder • Partial or full policy surrender vs. policy loan vs. collateral loan taxation
- Life/ lives insured • Tax considerations of replacements and other dispositions
- Beneficiary
- Face amount
- Supplementary benefits and/or riders
- Renewability and convertibility
- Premiums (amount, monthly vs. yearly pay)
- Limitations or exclusions
Group life coverage (non-government) Government death and survivor benefits

• Coverage details • Eligibility and method for receiving Canada Pension Plan (CPP) death benefit
- End date • CPP survivors’ benefits for spouse and dependent children
- Face amount • Old Age Security (OAS), Allowance for surviving spouse
- Beneficiary • Provincial Workers’ Compensation benefits related to death
- Additional benefits • Quebec Pension Plan (QPP)
• Limitations of group insurance coverage
- When it expires
- Convertibility upon termination from group
- Security (employer could terminate or change the plan without notice)
- Limits on face amount
Benefits that might be lost or reduced upon death

• Group or individual health insurance coverage
• Group or individual disability insurance benefits
• Retirement pension income from employer
LIife insurance
4
1.3 Articulate the client’s needs based on the risks Needs analysis process Business life insurance needs
that could affect his or her financial situation • Principles, concepts and techniques involved in needs analysis and fact-finding • Why a business might buy life insurance
• The math behind insurance needs analysis - Funding a buy-sell cross-purchase agreement
- Human capital approach - Funding a share redemption plan
- Capital needs approach - Key person insurance
- General discussion of the impacts of inflation, investment returns and • Why a buy-sell agreement might be an important part of a business
income taxes continuation plan
• Benefits of using life insurance proceeds to defray the tax on capital gains that
may be triggered at death
• Current coverage assessment
• Short term and/or permanent insurance needs
• Coverage shortfall
• Available cash flow to pay for additional coverage
• Suitable beneficiaries
• Impact of potential job advancement or job loss
Risk
• Severity of risk (i.e., what will be the financial impact of death on the survivors)
• Probability of risk
• Client’s risk tolerance
LIife insurance
5
30 2. Analyze the available products that meet the 2.1 Analyze the types of contracts that meet the Term life insurance Permanent life insurance
client’s needs client’s needs • How term life insurance works • Primary characteristics that distinguish permanent life insurance from term
• Advantages/disadvantages, and limitations of term life insurance for the life insurance
policyholder • Three types of permanent insurance
• Level term, increasing term, and decreasing term life insurance - Whole life
• Renewable and non-renewable term insurance - Term-100
• Convertible term insurance - Universal life
• Common situations when term insurance may be appropriate (short-term risks,
limited funds for premiums, etc.)
Whole life insurance Term-100 insurance

• How whole life insurance works • How term-100 (T-100) life insurance works
- Premium options • Level cost of insurance (LCOI)
• Policy reserve • Advantages/disadvantages of T-100 life insurance
- Potential for policy loans • Common situations when term-100 may be appropriate (e.g., needs are long
- Guaranteed or adjustable whole life term but non-forfeiture benefits are not required)
• Non-participating whole life policies
- Identifying the difference between participating and non-participating policy
• Participating whole life policies and their dividend payment options
- Cash
- Premium reduction / Offset
- Accumulation
- Paid-up additions
- Term insurance
• Non-forfeiture benefits
- Cash surrender value (CSV)
- Automatic premium loans
- Reduced paid-up insurance
- Extended term insurance
• Limited payment whole life
• Impact of a changing dividend scale on the completion of a premium offset
LIife insurance
policy
• Advantages/disadvantages of whole life insurance
• Common situations when whole insurance may be appropriate (e.g., longer
term risks, savings component, etc.)
6
Universal life insurance Group life insurance specificities

• How universal life (UL) works, including the flexibility to change • How group life insurance works, including
- Face amount - Who is the policyholder
- Live(s) insured - Master contract
- Timing and amount of deposits - How a group is defined
- Impact of modal factor - Who is a member
• How the three separate parts of a UL policy are unbundled (insurance, - Membership classes
investments and expenses) - Who pays the premiums
- Deposit Tax • Types of group life insurance, including
• Difference between yearly renewable term (YRT) and LCOI /T-100 mortality - Term life
costing in a universal life product - Dependent life
• Impact of investment choices on the viability of a UL policy
- Survivor income benefit
• Implications of early withdrawals, loans, and leveraging of a UL insurance
policy - Optional group life
• Limitations on deposits to meet exemption test - Accidental death and dismemberment (AD&D)
• Advantages/disadvantages of UL insurance • Basic vs. voluntary AD&D plans, including their
• Common situations when UL insurance may be appropriate (e.g., wealth - Qualification requirements
transfer to children, variable financial means and insurance need, an alternative - Exclusions
for experienced investors) • Favourable tax treatment of group life insurance for both the employer and
• Differences between whole life policies and universal life policies the employee
• Understand Canadian commodity tax system as it applies to employee
benefits (federal and provincial)
Business insurance Tax implications of the contracts that meet the client’s needs
• Nature of business continuation insurance • Policy values
• Buy-sell insurance - Collateralization
- Purpose of buy-sell agreements - Policy loans
- Cross-purchase agreements - Dividends and benefits purchased via dividends
- Gain calculations
- Share redemption plans
- Accrual calculations
- Using life insurance to fund buy-sell agreements - Exempt test concepts and calculations
• Key person insurance - Situations and corrective actions where a tax-exempt policy fails the
• Role of the capital dividend account exempt test
• Split-dollar arrangements for employer/key employee • Corporately-owned policies
• Contract analysis - Tax treatment of co-owned corporate and personal insurance products -
- Current contract offerings shared ownership
- Client needs vs. products available in marketplace - Crediting of "mortality gain" to Capital Dividend Account (CDA)
LIife insurance
- Using cash value personally from a corporately owned policy – collateral
loan strategy at prescribed interest rate
7
2.2 Analyze the riders that meet the client’s needs Supplementary benefits and riders Rider analysis
• Difference between a policy benefit and a rider • Customization and enhancement of coverage
• Accidental death (AD) • Meaning and value of coverage in spite of limitations, modifications and
• Accidental death and dismemberment (AD&D) exclusions
• Monthly disability benefit • Difference between each carrier’s equivalent riders
• Waiver of premium benefit • Advantages and disadvantages of policy options
- Waiting period
• Purpose and key provisions of accelerated death benefit riders
- Terminal illness (TI) benefit
- Dread disease (DD) benefit
- Long-term care (LTC) benefit
• Term insurance riders on term or permanent life insurance policies
- Additional term insurance coverage for the primary insured
- Coverage for additional insured persons, including family coverage riders
• Guaranteed insurability benefit (GIB) rider
• Paid-up additions rider
• Critical illness rider
• Parent/payor waiver
LIife insurance
8
25 3. Implement a recommendation adapted to the 3.1 Consider the impact of underwriting criteria as Underwriting concepts and criteria Underwriting process
client’s needs and situation they apply to the client’s situation • Underwriting and factors considered • How head office processes an application for life insurance when it is received
• Eligibility requirements (e.g., newly landed immigrant, international students or from the field, including
frequent travelers) - Medical exam
• Key components of the life insurance application - Attending Physician’s Statement (APS)
- Agent comments section - Role of the Medical Information Bureau (MIB) and ramifications for the
- Accurate completion of medical questions applicant
- Financial information - Motor vehicle report (MVR)
- Product selection - Inspection reports
• Material misrepresentation vs. fraud vs. mistake - Hazardous sports and occupations
• Insurable interest - Financial underwriting
• Impact of incomplete or inaccurate information in the application - Multiple applications
• Temporary insurance agreements (TIAs) • Factors at the company level that may affect the pricing of a life insurance
• Factors at the client level that may increase or decrease premium rates product, including
- Age - Mortality costs
- Health - Administration costs and expenses
- Gender - Investment returns
- Occupation • Company’s underwriting guidelines
- Family history • Client’s need to understand what underwriting is, its importance, and its
implications for future applications
- Life style
• Substandard risks and rated policies
• No underwriting required for basic and minimum amounts of group life
insurance (underwriting only for additional coverage)
Reinsurance
• How reinsurance works
• Reasons why insurance companies use reinsurance
LIife insurance
9
3.2 Propose a recommendation adapted on the Recommendation process Strategies for tax efficiency
client’s needs and situation • How to present the findings from the needs analysis • General strategies
• Needs that can suitably be met with life insurance, such as: - Leveraging or borrowing to invest
- Income replacement - Income splitting
- Estate liquidity (final expenses, tax liabilities, debt elimination, etc.) - Gift strategies
- Charitable bequests • Credits and deductions
- Estate equalization - Charitable donations or tax credit
- Tax-advantaged returns in investing
- Support for children, including education funding
• Insurance-specific strategies
- Lifetime support of a spouse or special needs dependent
- Using insurance contracts claim benefit to minimize estate taxes
- Funding a buy-sell agreement or meeting other business needs - Using insurance contracts contingent owner change to minimize estate tax
• How to choose the most appropriate life insurance category liabilities
• How to identify specific products within that category that would address the - Using insurance contracts to minimize or offset capital gains
client’s needs - Using insurance contracts to defer tax on earnings
• Purpose and limitations of using scenarios or illustrations to help the client - Management of probate fees
compare products
Characteristics of recommendation
• Selected product(s)
• Amount of coverage
• Term (if applicable)
• Premium
• Recommended riders
• Beneficiaries (primary and contingent)
• Exclusions
• Important clauses
LIife insurance
10
3.3 Confirm the requirements that must be met to Implementation process

implement the recommendation • Application and delivery process, including
- Application
- Signed illustration
- Interim or temporary insurance
- Underwriting
- Acceptance
LIife insurance
11
10 4. Provide customer service during the validity 4.1 Validate the appropriateness of contract Review/update process
period of the coverage amendment, renewal and termination • Role of an effective financial planning process to address a client’s ongoing • How to make changes as a result of the review, including
applications in regards to the client’s situation needs, including - Procedures for amending, renewing, terminating or cancelling an existing
- Factors that could impact insurance needs (e.g., change in dependents, policy
marital status, employment or income, mortgage or new business owner, - Replacement rules and non-compliance penalties
leaving Canada) - How to handle minor amendments such as name changes or a change in
- Updated needs analysis address
- New recommendations, including recommended policy changes • Absolute and partial policy assignments
- Periodic review cycle
4.2 Inform the claimant of the claims process Claims process Agent’s role in claims process
• Company requirements for a death claim • How to assist the executor or beneficiary with completing a claims form
- Completed claim form • Role of the estate’s executor or professional advisors
- Proof of death
- Proof of age
- Attending Physician’s Statement (APS)
- Confirmation of beneficiaries
• Factors that could result in a lower payment
• Time requirements
• Tax treatment of death benefit (individual and group plans)
LIife insurance
12
CURRICULUM – LLQP
MODULE: Accident and sickness insurance
Competency: Recommend individual and group accident and sickness insurance products adapted to the client’s needs and situation
1.1. Determine the client’s situation
1.2. Assess the appropriateness of the client’s existing coverage in regards to his or her situation
1.3. Articulate the client’s needs based on the risks that could affect his or her financial situation
30 2. Analyze the available products that meet the client’s needs
2.1. Analyze the types of contracts that meet the client’s needs
2.2. Analyze the riders that meet the client’s needs
3.1. Consider the impact of underwriting criteria as they apply to the client’s situation
3.2. Propose a recommendation adapted to the client’s needs and situation
3.3. Confirm the requirements that must be met to implement the recommendation
4.1. Validate the appropriateness of contract amendment, renewal and termination applications in regards to the client’s situation
4.2. Inform the claimant of the claims process

COMPETENCY: RECOMMEND INDIVIDUAL AND GROUP ACCIDENT AND SICKNESS INSURANCE PRODUCTS ADAPTED TO THE CLIENT’S NEEDS AND SITUATION
35 1. Assess the client’s needs and situation 1.1 Determine the client’s situation Individual client’s personal situation Individual client’s financial situation
• Family • Sources of income
- Past and present marital status - Earned income
- Financial responsibilities and commitments between family members - Investment income
- Family generations - Unearned income
• Occupation - Pension income
- Type of job, profession or business - Employee benefits
- Daily job duties - Insurance coverage benefits
- Length of time in current role • Net income
- Training and education • Assets and liabilities
• Health and medical situation - Types of ownership of assets
- Past and present health and personal care issues - Beneficiaries for assets
- List of past and present medications used - Tax consequences related to liquidation of assets
- Details of all debt (type, amount, purpose, interest rate, repayment schedule,
management by client)
Group client’s situation • Participation in employer-sponsored registered and non-registered savings plans
• Two years of claims experience • Monthly and yearly cash-flow for family and business
• Nature of business • Amount of savings available for emergencies
• Employee data sheet • Prior years’ tax returns and notices of assessment (at least past two years)
Accident and sickness insurance

3
1.2 Assess the appropriateness of the client’s Individual client’s existing coverage Group client’s existing coverage
existing coverage in regards to his or her • Personal coverage • Plan design and premium rates
situation - Type of coverage (disability income replacement, accident and • Funding mechanisms
dismemberment, critical illness, long-term care) • Claims administration
- Characteristics of coverage (benefit amount, waiting and benefit periods,
main features, premium)
• Group coverage
- Type of coverage, including extended health benefits Appropriateness of existing coverage
- Characteristics of coverage, such as basis of coverage (salary, bonuses, • Comparison of available coverage and resources against anticipated expenses and
non-evidence maximum) need for liquidity and income, in cases of disability and sickness and during
• Government coverage retirement
- Employment Insurance (EI) • Advantages and disadvantages of existing coverage
- Canada Pension Plan (CPP)
- Workers’ Compensation
- Provincial health and disability plans
- Tax characteristics of government benefits (non-deductibility, taxation of
benefits, eligibility and contribution criteria, calculation of benefit amounts,
integration with privately-funded employment benefits)
• Lending institution coverage
• Other resources (community and family resources, income, savings and post-
retirement benefits)

4
1.3 Articulate the client’s needs based on the risks Needs analysis process Risks
that could affect his or her financial situation • Determining needs and goals • Financial risks associated with a loss of livelihood, or standard of living, including
• Documenting the client’s current financial position, obligations and risks impact on estate planning initiatives, survivors’ needs and tax consequences at
• Comparing needs against existing resources (surplus, overlap, gaps) death
• Identifying suitable coverage or changes to existing coverage - Client’s exposure to financial risk
• Identifying the implications of changes to insurance coverage - Client’s risk tolerance
Client needs
• Liquidity to achieve financial goals
- Time horizon and source of funds
• Income during retirement based on objectives
- Retirement duration vs. longevity of family
- Desired budget considering inflation
• Additional capital required after a disability
- Expenses to be covered
- Impact of disability on family, wealth accumulation goals, retirement and
estate plan
• Additional capital required after a critical illness diagnosis
- Medical treatments and time off work
• Additional capital required after a long-term care diagnosis
- Loss of independence and daily care

5
30 2. Analyze the available products that meet the 2.1 Analyze the types of contracts that meet the Individual disability insurance (DI) Long-term care insurance (LTC)
client’s needs client’s needs • Types of contracts • Description of how policy benefits work
• Specific provisions and their potential impact • Definition of Activities of Daily Living (ADLs)
• Application in meeting client needs • Comparison between home care and facility care benefits
• Definitions of disability • Guaranteed and non-guaranteed benefits
• Definitions: non-cancellable and guaranteed renewable
• Benefit periods
• Short-term and long-term disability insurance (STD and LTD)
• Meaning and purpose of a waiting period
• Limitations and possible modifications
• Exclusions
• Impact of offsets and integration of benefits
Group disability insurance (DI) Critical illness insurance (CI)

• Types of contracts • Types of contracts
• Definitions of disability as used by short-term and long-term income • Application in meeting client needs
replacement plans • Conditions that are generally covered
• Rationale for the use of waiting periods in pricing plans • Circumstances that will result in a payment of benefit
• Qualification period • Medical definitions
• Coverage amounts • Role of critical illness insurance in financial planning

- Non-evidence maximum amounts
- Maximum amounts
• Benefit amounts and benefit period requirements of an STD plan to
qualify for registration under the Employment Insurance Act for premium
reduction purposes
• Advantages to employers of having an STD plan that is registered with
Human Resources Canada for premium reduction purposes
• Rationale for having an employee pay the premiums for group LTD
• Impact of coordination of benefits and subrogation on a group policy
6
Characteristics of specialized types of accident and sickness (A&S) Other group accident and sickness (A&S) insurance products
and disability coverage • Types of contracts, including AD&D
• Types and characteristics of business insurance • Types of medical services usually included
- Disability business overhead expense insurance • Rationale for the inclusion of deductibles and co-payments
- Disability buyout coverage • Typical limitations and exclusions
- Business loan protection • Coverage and coordination of benefits
- Key person coverage
• Coverage offered by group extended health plans
• Types and characteristics of corporately-owned policies
• Primary features of a typical Employee Assistance Program (EAP)
- Health and welfare trusts
- Employee health trusts Contract analysis
- Personal health spending plans
- Private health Services Plans (PHSPs) for business owners • Current contract offerings
- Grouped policies • Client needs vs. products available in marketplace
- Tax implications of a personal insurance policy being corporately held • Implications of statutory provisions for the administration of A&S contracts
• Mortgage DI and CI insurance • Taxation of A&S premiums and benefits
• Options for clients unable to qualify for traditional DI, such as special risk - Tax-free return of premium benefit on critical illness (CI) or disability
DI - Sales tax applicable to employee benefits (federal and provincial)
• Clients whose needs cannot be fully met by traditional DI • Policy guidelines
• Underwritten and guaranteed plans
Other individual accident and sickness (A&S) insurance products Group insurer’s services
• Types of contracts, including accidental death and dismemberment • Claims adjudication
(AD&D) • Member enrolment
• Specific provisions and their potential impact • Premium billing

• Application in meeting client needs
• Rationale to supplement provincial and territorial coverage
7
2.2 Analyze the riders that meet the client’s needs Types of riders Rider analysis
• Future Purchase Option (FPO) • Customization and enhancement of coverage
• Cost-of-Living Adjustment (COLA) • Meaning and value of coverage in spite of limitations, modifications and
• Accidental death and dismemberment (AD&D) exclusions
• 24-hour injury and sickness protection • Differences between each carrier’s equivalent riders
• Long-term injury protection • Advantages and disadvantages of policy options
• Specific injury benefits
• Rehabilitation program benefit
• Hospitalization benefit
• Homecare
• Recurrent disability
• Partial and residual disability
• Presumptive disability
• Waiver of premium
• Return of premium
• Definitions of occupation (regular, own or any)

8
25 3. Implement a recommendation adapted to the 3.1 Consider the impact of underwriting criteria as Underwriting concepts and criteria Underwriting process
client’s needs and situation they apply to the client’s situation • Standards, coverage limits, premium rates and underwriting requirements • Factors that are relevant in the development and pricing of an accident and
relating to client characteristics sickness insurance product
- Income - Morbidity rates
- Employment - Administrative costs
- Lifestyle - Expenses
- Health - Cost drivers for group products
- Family history • Key components of the policy application
• Basic underwriting criteria for disability insurance (DI), critical illness - Agent comments section
insurance (CI) and long-term care insurance (LTC) - Medical questions
• Resulting exclusions and modifications - Financial information
• Circumstances under which benefits might not be payable or when the - Product selection
coverage might be rescinded - Additional requirements
• Impact of incomplete or inaccurate information in the application
• Steps head office undertakes in processing an application received from the field
- Medical exam
- Attending Physician’s Statement (APS)
- Medical Information Bureau (MIB)
- Inspection reports
- Hazardous sports and occupations
- Financial underwriting

- Potential additional questionnaires or client interview
9
3.2 Propose a recommendation adapted to the Recommendation process Characteristics of the recommendation
client’s needs and situation. • Quotes for appropriate coverage options based on needs • Selected product(s)
- Group brokerage services • Amount of coverage
• Adjustments to recommendation based on client input • Premium
• Management of client expectations regarding underwriting • Recommended riders
• Beneficiaries
• Exclusions
Factors that impact the recommendation
• Important clauses
• Client situation
- Age
- Occupation
• Investments
• Family structure and dynamics
• Health, disability and potential exclusions
• Risk management
• Retirement planning
• Taxation
- Strategies to maximize taxation efficiency (medical expense tax credit,
health and welfare trust or PHSP for business owners)
• Risk tolerance
• Time horizon

3.3 Confirm the requirements that must be met to Requirements Implementation process
implement the recommendation • Requirements to issue the product, according to product type • Ratings (medical or risk ratings) and exclusion riders under which a contract is
• Required documents (physician’s report, income tax report, financial issued
statements, identification) • Full disclosure in case of modification
• Identification of timelines to review or remove exclusions, limitations and ratings
10
10 4. Provide customer service during the validity 4.1 Validate the appropriateness of contract Client services Review process
period of the coverage amendment, renewal and termination applications • Policy feature opportunities and options • Determining suitability or changes needed
in regards to the client’s situation - Future purchase • Providing full disclosure and taking notes
- Guaranteed insurability • Providing the client with a rationale for recommended action
- Conversion • Assessing the implications of changes to insurance coverage
- Timed modifications • Developing a client service strategy to remain aware of client’s needs and
- Timed ratings situation
• Review or removal of exclusions, limitations and ratings based on policy • Re-setting client expectations
timelines
• Policy service forms
• Basic form processing rules
4.2 Inform the claimant of the claims process Claims process Agent’s role in the claims process
• Requirements for a claim • Describing the claims process
• Factors that could result in lower benefits • Knowing where to access and send forms and how they should be completed
• Time requirements • Communicating with the benefit’s adjudicator

• Tax treatment of benefits • Understanding the carriers’ expectations of the agent’s role
11
CURRICULUM – LLQP
MODULE: Segregated funds and annuities
Competency: Recommend segregated funds, individual annuities and group pension plans adapted to the client’s needs and situation
1.1. Determine the client’s situation, investment objectives, and investor profile
1.2. Assess the appropriateness of the client’s existing coverage in regards to his or her situation
1.3. Articulate the client’s needs based on the risks that could affect his or her financial situation
30 2. Analyze the available segregated funds and annuities that meet the client’s needs
2.1. Analyse the types of investments that can constitute a segregated fund and that meet the client’s needs
2.2. Analyze the advantages of segregated funds in comparison to other types of investments in regards to the client’s needs
2.3. Analyze the types of annuities that meet the client’s needs
3.1. Propose a recommendation adapted to the client’s needs and situation
3.2. Confirm the requirements that must be met to implement the recommendation
4.1. Validate the appropriateness of contract amendment, renewal and termination applications in regards to the client’s situation
4.2. Inform the claimant of the claims process

COMPETENCY: RECOMMEND SEGREGATED FUNDS, INDIVIDUAL ANNUITIES AND GROUP PENSION PLANS ADAPTED TO THE CLIENT’S NEEDS AND SITUATION
35 1. Assess the client’s needs and situation 1.1 Determine the client’s situation, investment Individual client’s personal situation Investor investment objectives
objectives, and investor profile • Health concerns • Account purpose
• Longevity of the client • Financial goals
• Power of attorney • Need for guaranteed investments
• Will • Time horizon
Individual client’s financial situation Investor profile

• Documents for review • Current savings
- Income tax return (for the individual and his or her spouse, and business • Risk tolerance
for the small business owner) • Knowledge of investments
- Mortgage statement • Investment experience
- Statement of registered retirement savings plan (RRSP) contributions • Tolerance of volatility
- Pension plan statements • Results of financial review
- Credit card statements • Results of needs review
- Bank statements • Results of income survey
- Line of credit or Home Equity Line of Credit (HELOC) statement
- Other sources of income and debt,such as investment real estate, Group plan intention
Segregated funds and annuities

royalties, family support obligations, personal loans • Funding commitment and payroll contributions
- Non-registered investment account statements • Timing of plan implementation
• Preparation and analysis
- Basic balance sheet (assets and liabilities, including creditor liabilities)
- Budget
- Net worth statement
- Cash flow statement
3
1.2 Assess the appropriateness of the client’s existing Government retirement pensions Individual registered plans
coverage in regards to his or her situation • Eligibility, contributions, and benefits • Registered retirement savings plan (RRSP)
- Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) - Spousal RRSP
- Old Age Security (OAS) • Registered retirement income fund (RRIF)
- Guaranteed Income Supplement (GIS) - Income splitting
- Allowance • Registered disability savings plan (RDSP)
- Veterans’ benefits • Registered education savings plan (RESP)
- Provincial retirement benefits
• Tax characteristics
- Non-deductibility of mandatory government plans
- Taxation of benefits
Group pensions Individual non-registered plans

• Registered pension plan (RPP) eligibility, contributions and benefits • Non-registered accounts
- Defined benefit pension (DBP) - Savings
- Defined contribution pension (DCP) - Investments
- Deferred profit-sharing plan (DPSP) • Life insurance
- Group registered retirement savings plan (GRRSP) - Insurance policies
• Locked-in plan restrictions and benefits - Annuities
- Life income fund (LIF)

- Locked-in retirement account (LIRA)
- Locked-in retirement savings plan (LRSP)
- Locked-in retirement income fund (LRIF)
- Prescribed retirement income fund (PRIF)
- Restricted life income fund (RLIF)
Individual or group registered plans Group plan coverage

• Pooled registered pension plan (PRPP) • Plans available
• Tax-free savings account (TFSA) • Form of existing plan
4
1.3 Articulate the client’s needs based on the risks Risks facing the individual investor Needs
that could affect his or her financial situation • Economy as a whole • Need for income
• Investment risks - Individual
- Inflation risk - Spouse
- Interest rate risk - Couple
- Market risk • Need for retirement income
- Liquidity risk - Individual
- Foreign exchange risk - Spouse
- Credit risk - Couple
- Industry risk • Need for estate planning
• Client-specific financial risks • Need for emergency fund
- Low level of financial literacy • Need for creditor proofing
- Risk of job loss • Need for lump-sum savings
- Risk of outliving money (longevity) • Return on investment
- Risk of bankruptcy - Capital preservation
- Liquidity issues - Growth
- Inflation protection
• Diversification
• Investment management

5
30 2. Analyze the available segregated funds and 2.1 Analyze the types of investments that can Types of segregated funds Fund analysis
annuities that meet the client’s needs constitute a segregated fund and that meet the • Money market funds • Current offerings
client’s needs • Bond funds • Client needs vs. products available
• Income funds • Application of basic taxation principles
• Mortgage funds - Investment allocations and dispositions triggering capital gains or losses
• Equity funds - Withholding tax on income and fund surrenders
• Dividend funds
• Real estate funds
• Balanced funds
• Index funds
• Fund of funds
• Specialty funds

6
2.2 Analyze the advantages of segregated funds in Other types of investments Advantages of segregated funds for groups
comparison to other types of investments in • Stocks • Lower management expense ratio
regards to the client’s needs • Bonds • Forced savings
• Real estate • Professional management
• Mutual funds • No requirement for ongoing decisions
• Exchange-Traded Funds (ETFs) • Allocations
• Guaranteed Investment Certificates (GICs) • Member participation
• Canada Premium Bonds (CPBs) - Fund switches
• Canada Savings Bonds (CSBs) - Rebalancing of assets
- Withdrawals
Advantages of segregated funds for individual investors Tax implications

• Issue as individual variable insurance contract (IVIC) • Capital gains or loss on redemption of non-registered annuity contracts
• Guarantees (segregated funds only)
- On maturity • Tax treatment of death guarantee and maturity guarantee top ups of segregated
- On death fund annuity contracts
• Creditor protection • Tax treatment of GMWB and GLWB plans
• Reset option
• Exemption from probate

• Income benefit
- Guaranteed Minimum Withdrawal Benefit (GMWB)
- Guaranteed Lifetime Withdrawal Benefit (GLWB)
• Managed volatility
• Professional management
• No requirement for ongoing decisions
• Valuation
• Allocations
• Switches between funds
• Ability to transfer and withdraw
• Diversification
• Assuris coverage
• Right to cancel
• Ongoing deposits
7
2.3 Analyze the types of annuities that meet the Types of annuities Advantages of annuities for individual investors
client’s needs • By type of contract • Income security
- Single-life • Ease of understanding
- Joint first and joint last to die • Creditor protection
- Registered and non-registered annuities
• By duration Tax implications
- Term certain annuity • Accrual reporting vs. prescribed annuity contract reporting
- Straight life annuity (guarantees, e.g., number of payments, instalment • Income tax on registered annuity contracts
refund, cash refund)
- Impaired life annuity Factors affecting annuity payments
• By need for income • Withdrawal rights and market value adjustment
- Immediate annuity • Guarantees
- Indexed life annuity • Annuity rate
• Length of benefit period
- Deferred annuity
- Variable annuity
• By form of taxation
- Prescribed rate
- Accrued rate
• By capitalization

- Accumulation annuity
- Defined contribution pension (DCP) and locked-in retirement account
(LIRA) transfer
- Registered retirement savings plan (RRSP) maturity transfer
• By need for estate planning
- Insured annuity
8
25 3. Implement a recommendation adapted to the 3.1 Propose a recommendation adapted to the client’s Recommendation for segregated fund for the individual investor Recommendation for segregated fund for the group
client’s needs and situation needs and situation • Minimum deposit and funding • Selection of appropriate plan for the group
• Type of fund and its specific characteristics • Presentation of alternatives
- Total value
- Date of inception Recommendation for annuity for the individual investor
- Portfolio turnover rate • Timing: immediate or deferred
- Portfolio manager • Value of guarantees
- Minimum investment - Life annuity
- Performance data (average return, year-over-year returns) - Riders
- Fund facts • Annuity rate
- Adjusted cost base - Variable
- Notional units - Fixed
- Financial statement • Taxation
- Taxation • Benefit payment
- Net asset value and market value • Type of annuity and its specific characteristics
• Value of guarantees • Creditor protection
- Death guarantee Strategies for tax efficiency
- Maturity guarantee • General strategies
- Enhanced death benefits

- Leveraging or borrowing to invest
- Guaranteed Minimum Withdrawal Benefit (GMWB) and Guaranteed - Income splitting
Lifetime Withdrawal Benefit (GLWB) riders and withdrawals
- Gift strategies
• Time value of money
• Credits and deductions
• Reset rules
• Tax considerations - Charitable donations or tax credit
- Tax treatment of maturity guarantee - Using tax credits in higher or lower income spouse’s name
- Tax treatment of death benefits - Tax-advantaged returns in investing
• Riders - Tax deductibility of interest on leveraging for non-registered plans
• Fund options • Insurance-specific strategies
• Maturity date - Prescribed annuities
• Tax deferral plans
Limitations of segregated funds for the individual investor
• Specific sales charge applied - Tax Free Savings Account, Registered Retirement Savings Plan (RRSP),
• Management expense ratio (MER) of fund spousal RRSP
• Trailing commission of fund - Home Buyers’ Plan and Lifelong learning Plan as RRSP strategies
• Principal risks of fund
• Age restrictions
• Penalties applied
- Early termination and surrender
- Withdrawals
9
Limitations of segregated funds for groups

• Absence of guarantees
• Mandatory contributions
• Vesting period
Limitations of annuities for the individual investor

• Interest rate risk
• Inflation risk
• Risk of loss of capital at death
• Penalties
- Early termination and surrender
- Withdrawals

10
3.2 Confirm the requirements that must be met to Individual investor Group
implement the recommendation • Application form • Role of group administrator
• Rider election form • Data from group administrator
• Beneficiary form • Documentation to group members
• Correct form of account • Application form
- Proper client identification for account opening purposes • Payroll contributions
- Ascertaining owner, annuitant and beneficiary • Eligibility of members
• Consideration (payment) to accompany application or specifying the • Need for annual review
source of funding, i.e. transfer of registered retirement savings plan
(RRSP) or locked-in retirement account (LIRA)
• Delivery of information folder and fund facts
• Determining fund value
• Notice of confirmation with signatures and date

11
10 4. Provide customer service during the validity 4.1 Validate the appropriateness of contract Service needs of individual investors Service needs of group plan members
period of the coverage amendment, renewal and termination applications • Follow-up • Follow-up
in regards to the client’s situation • Monitor and review • Monitor and review
- Scheduled review - Annual review
- Annual review - Change in client circumstances
- Change in client circumstances - Change in product
- Change in product • Locked-in account transfer
• Deposits • Change of beneficiary
• Fund switches • Withdrawals
• Change of beneficiary • Purchase of annuity
• Reset • Termination of employment
• Renewal - Transfer to another group plan
• Withdrawals - Transfer to individual locked-in account
• Surrender

4.2 Inform the claimant of the claims process Agent’s role in the claims process Claims information for individual investors
• Describing the claims process • Death
• Knowing where to access and send forms and how they should • Withdrawals
be completed • Surrender
• Understanding the carrier’s expectations of the agent’s role • Maturity
• Power of attorney
Claims information for group members Factors affecting claim

• Notice of change • Maturity guarantee
• Death • Death benefit guarantee
• Withdrawal by member • Market value adjustment
• Allocations
• Sales charge
12

LLQP Curriculum - Revised March 2014

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CURRICULUM

Life License Qualification Program (LLQP)

1.1. Delimit the legal framework governing life insurance

1.2. Characterize the parties involved in the contract

2.1. Explain the role of the organizations that protect consumers

% COMPETENCY COMPONENTS COMPETENCY SUB-COMPONENTS CONTENTS

Ethics and professional practice

COMPETENCY SUB-COMPONENTS CONTENTS

COMPETENCY SUB-COMPONENTS CONTENTS

Ethics and professional practice

COMPETENCY SUB-COMPONENTS CONTENTS

Ethics and professional practice

COMPETENCY SUB-COMPONENTS CONTENTS

Specific features in supplemental pension plans

COMPETENCY SUB-COMPONENTS CONTENTS

Ethics and professional practice

Specific features of health and accident insurance Payout annuities

% COMPETENCY COMPONENTS COMPETENCY SUB-COMPONENTS CONTENTS

COMPETENCY SUB-COMPONENTS CONTENTS

Agent’s responsibilities Deceptive practices

Ethics and professional practice

1.2 Define the other sources of law applicable to insurance of persons

2.1 Characterize the parties involved in the contract

3.1 Explain the role of the organizations that protect consumers

% COMPETENCY COMPONENTS COMPETENCY SUB-COMPONENTS CONTENTS

Ethics and professional practice (Québec)

% COMPETENCY COMPONENTS COMPETENCY SUB-COMPONENTS CONTENTS

Ethics and professional practice (Québec)

COMPETENCY SUB-COMPONENTS CONTENTS

Ethics and professional practice (Québec)

COMPETENCY SUB-COMPONENTS CONTENTS

Ethics and professional practice (Québec)

COMPETENCY SUB-COMPONENTS CONTENTS

Ethics and professional practice (Québec)

COMPETENCY SUB-COMPONENTS CONTENTS

Specific features of health/accident insurance Supplemental pension plans

% COMPETENCY COMPONENTS COMPETENCY SUB-COMPONENTS CONTENTS

COMPETENCY SUB-COMPONENTS CONTENTS

Ethics and professional practice (Québec)

Representative in insurance of persons Representative in group insurance

Firm Financial planner

Independent partnership Independent representative

Distinction between bank products, securities and insurance, regulating

COMPETENCY SUB-COMPONENTS CONTENTS

Ethics and professional practice (Québec)

1.1 Determine the client’s situation

30 2. Analyze the available products that meet the client’s needs

2.2 Analyze the riders that meet the client’s needs

25 3. Implement a recommendation adapted to the client’s needs and situation

3.2 Propose a recommendation adapted on the client’s needs and situation

10 4. Provide customer service during the validity period of the coverage

4.2 Inform the claimant of the claims process

% COMPETENCY COMPONENTS COMPETENCY SUB-COMPONENTS CONTENTS

Group client’s situation

COMPETENCY SUB-COMPONENTS CONTENTS

Group life coverage (non-government) Government death and survivor benefits

Benefits that might be lost or reduced upon death

COMPETENCY SUB-COMPONENTS CONTENTS

% COMPETENCY COMPONENTS COMPETENCY SUB-COMPONENTS CONTENTS