Life, A&S, Seg Funds
35 questions in 75 minutes: 30 scored and 5 unscored pilots, mixed in and not identified. About two minutes per question. You need 18 of the 30 scored answers right.
LLQP practice exams
Start with a free practice set drawn from our training bank: Life, Accident and Sickness, Segregated Funds and Annuities, and Ethics. Use training mode to see each explanation as you go, or exam mode to get your score by module at the end. No sign-up.
0 answered out of 20
A non-registered segregated fund allocates $1,200 of interest and $3,000 of capital gains to Beatriz this year. She reinvests everything. What amount is added to her taxable income for the year?
Interest and gains do not have the same inclusion.
See the answer and explanation
Correct answer: D. Interest is 100% taxable ($1,200) and the capital gain is 50% taxable ($1,500): $1,200 + $1,500 = $2,700. Reinvesting does not defer the tax, so $0 is incorrect.
How does a LIF differ from a RRIF?
Which feature of a LIF protects the retirement purpose of the money?
See the answer and explanation
Correct answer: A. A LIF holds locked-in money, so withdrawals are limited between a minimum (like a RRIF's) and a maximum. A RRIF has only the minimum, which is why locked-in money cannot be drawn down freely.
A contract holder withdraws part of a segregated fund. How do most contracts adjust the guarantee?
Think of the withdrawal as a fraction of something.
See the answer and explanation
Correct answer: B. Most contracts reduce the guarantee proportionally: guarantee × (1 − withdrawal ÷ market value before the withdrawal). When the market value is below the guarantee, this reduces the guarantee by more than the dollars withdrawn.
Maurice is 79. His contract allows resets until the annuitant's 80th birthday, which is in 3 months, and his fund is 12% above the guarantee. What should the agent do?
The decision is the client's; what must he know first?
See the answer and explanation
Correct answer: B. The agent must explain the deadline set by the contract and the trade-off of a reset (higher guarantee, new 10-year term) and leave the decision to the client. Acting without instruction or giving incorrect information about age limits would breach the duty to inform.
Rhea, 60, expects a 30-year retirement and fears inflation will erode her income. She accepts a lower starting payment. Which annuity fits best?
Which feature adjusts payments over time?
See the answer and explanation
Correct answer: C. An indexed annuity raises payments at a fixed rate or with an index, protecting purchasing power over a long retirement in exchange for a lower initial payment. A level payment loses value with inflation, and a 10-year term does not cover 30 years.
What is a front-end load on a segregated fund deposit?
Consider when the charge is taken.
See the answer and explanation
Correct answer: A. A front-end load is taken off the deposit at purchase, so less than the full amount is invested. A redemption-based fee describes the old DSC, and a yearly charge is part of the MER.
What information does a Fund Facts document provide about a segregated fund?
It is a short summary about one fund.
See the answer and explanation
Correct answer: D. Fund Facts is a brief, standardized summary of a specific fund: performance, risk, costs and guarantees. It does not replace the contract or provide financial statements or personal projections.
Yasmin states that her objective is "maximum growth," but in the questionnaire she says she would sell if her portfolio fell 10% in a year. What should the agent do?
Contradictory answers must be clarified before they are relied on.
See the answer and explanation
Correct answer: C. The agent must reconcile conflicting information through discussion, illustrate possible losses in dollars and record the agreed profile and the reasons. A signed waiver does not replace a proper suitability assessment.
Gordon dies owing $400,000 to creditors. His $120,000 segregated fund names his daughter as beneficiary. Can the estate's creditors claim the fund?
Does the death benefit enter the estate?
See the answer and explanation
Correct answer: D. A named beneficiary receives the death benefit under the insurance contract, so it never becomes an estate asset. With a family-class beneficiary, the estate's creditors cannot reach it, unless the designation was a fraudulent transfer.
What does a 100% maturity guarantee on a segregated fund offer that a 5-year GIC at a stated rate does not offer, and what does it lack?
Compare upside potential with what is promised.
See the answer and explanation
Correct answer: A. A GIC promises a stated rate of return; a 100% seg fund guarantee only protects the deposit at maturity, while leaving upside and downside above that floor to the market.
Sam, 65, buys a term-certain annuity to age 85 paying $900 a month. He dies at 73 after exactly 8 years of payments. His wife is the beneficiary. What will she receive?
Count the payments left in the 20-year term.
See the answer and explanation
Correct answer: B. A term-certain annuity pays for the stated term whether or not the annuitant is alive. 12 years remain: 12 × 12 × $900 = $129,600. $86,400 is what Sam already received (96 payments), and a life-only annuity is the one that stops at death.
Mei, 70, single, fears that if she dies in the first few years her $180,000 premium will be lost, and she wants her daughter to benefit. Which solution fits?
Which feature continues payments after the annuitant's death?
See the answer and explanation
Correct answer: D. A guarantee period keeps paying the beneficiary for the rest of the period if the annuitant dies early, at the cost of a slightly lower payment. A straight life annuity pays nothing after death, and the insurer does not refund unused capital.
Which statement about buying a life annuity at an older age is correct, with the same premium?
How does age change the number of expected payments?
See the answer and explanation
Correct answer: B. With the same premium, an older annuitant has a shorter expected payout period, so each payment can be larger. Age is one of the main pricing factors, with sex and interest rates.
Four clients each hold a segregated fund. Which one gets the most benefit from the fund's ability to allocate capital losses?
Capital losses are useful only against capital gains.
See the answer and explanation
Correct answer: D. Allocated capital losses offset capital gains in non-registered accounts, so Sam can reduce the tax on his property sale. Rita has no gains to offset, and losses in a TFSA or RRSP are not usable.
In a non-registered account, how is a capital gain taxed?
Think about the inclusion rate.
See the answer and explanation
Correct answer: B. The capital gains inclusion rate is 50%: only half the gain is added to taxable income. Interest, by contrast, is fully taxable.
What is a pension adjustment (PA)?
What does the adjustment reduce?
See the answer and explanation
Correct answer: B. The PA is reported on the T4 and reduces the following year's RRSP room, to reflect benefits earned in a registered pension plan or DPSP.
During the year, Julien's non-registered contract allocates $800 of interest and $1,600 of capital gains, and he also realizes a $2,000 capital gain on a partial redemption. What amount is added to his taxable income?
Interest is fully taxable; capital gains only 50%.
See the answer and explanation
Correct answer: D. $800 + (50% × $1,600 = $800) + (50% × $2,000 = $1,000) = $2,600. Applying 50% to everything ($2,200) also halves the interest, and $3,600 forgets to halve the redemption gain.
How does naming a successor owner differ from naming a beneficiary?
Who continues the contract, and who just receives the money?
See the answer and explanation
Correct answer: B. A successor owner steps into the holder's position and the contract continues without passing through the estate. A beneficiary receives the death benefit, usually at the annuitant's death.
A client's priority is that her children receive at least her original deposit when she dies, whatever the market does. Which feature of a segregated fund responds to this priority?
Which guarantee is triggered by death?
See the answer and explanation
Correct answer: C. The death benefit guarantee sets the minimum paid to the beneficiary at the annuitant's death; at 100% it covers the whole deposit (less proportional withdrawals). The maturity guarantee applies only at the end of the term.
Ibrahim invests $80,000 for 10 years, either in a GIC paying 3.50% compounded annually or in a segregated fund with a 100% maturity guarantee. In the worst market outcome, what is each option assured of at the end of 10 years?
Only the GIC promises a stated rate.
See the answer and explanation
Correct answer: B. GIC: $80,000 × 1.035^10 = $112,847.90. The seg fund guarantee protects only the $80,000 deposit; any gain depends on the market. $108,000 uses simple interest.
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Your result
All 2,760 questions, the lessons and 20 practice exams : $40, one-time payment.
See the prep courseA new set every day. These are training questions; the questions used in our timed practice exams are never published here.
The real format, module by module
Practise against the clock you will actually face. Each provincial sitting follows the harmonized format below.
Ethics and Professional Practice
25 questions in 75 minutes: 20 scored and 5 pilots. Three minutes per question, but only 20 that count. You need 12 right, and each miss costs 5%.
Question type
Multiple choice, four options, one correct answer. Many items are short client cases: a situation, then what the agent should recommend, calculate or disclose.
Reading your score against the 60% line
A free set gives you a direction, not a verdict. Look at each module separately: the exam does.
A 68% overall can hide an Ethics score of 50%, and Ethics is written on its own, with its own 60% line. When one module drags, filter the set on that module using the buttons above the questions, and repeat until the trend changes.
Keep a margin. You do not know which five questions are pilots, so the questions that count may be the harder ones on the day.
| Your score | What to do next |
|---|---|
| Under 50% | Go back to the course material for that module before practising more. Start with the definitions. |
| 50 to 69% | Close to the line. Work the weak topics, then try a full timed practice exam. |
| 70% and over | A good base. Confirm it twice under real conditions, on questions you have never seen, before you book. |
Free practice set or full preparation
The free set helps you find your level. The course is built to move each module above the line.
| Free practice set | LLQP Exam Prep | |
|---|---|---|
| Questions | A daily set | 2,760, with a two-level hint |
| Explanations | Yes | Yes, with the trap explained and a link to the lesson |
| Lessons | No | 42, with worked cases and calculations |
| Timed practice exams | No | 20, in the official format, unseen |
| Score by competency | For today’s set | Across your whole preparation |
| Price | Free | $40, one payment |
Official sample questions
CISRO publishes sample questions for each module: Life, A&S, Segregated Funds, Ethics (common law) and Ethics (Québec).
Read them once early, to calibrate the tone and length of real items, and once near the end, to check that nothing surprises you. They are not timed and there are few of them, so they cannot replace full practice exams.
Practise the maths separately
Needs analysis and segregated fund guarantees are where time disappears. Our free LLQP calculators show each step, so you can check your working on paper exercises before you time yourself.
Before your sitting, read the LLQP exam day guide: booking, online or in person, and results.
Frequently asked questions
About LLQP practice questions and this test.
Are these the actual LLQP exam questions?
No. Exam questions are confidential. Ours are original, written against the harmonized LLQP curriculum and reviewed when a rule changes. Be wary of sites selling “dumps”: they are either fake or a breach of exam integrity rules.
How many practice tests should I write before the exam?
Enough to score 70% or more twice, on different days, on questions you have not seen, for each module you are writing. That usually takes several per module.
Can I repeat the free test?
Yes, as often as you like. The set changes every day and you can filter it by module.
Does a good practice score mean I will pass?
No score can promise that. It does show if you are close to the 60% line, far below it or comfortably above it, which is what you need to decide when to book.