LLQP Segregated Funds & Annuities · Component 1.2 · 35% of the exam
A client asks whether her Quebec Pension Plan differs from CPP. The agent should note that QPP:
- AIs a private plan run by Quebec employers, so benefits vary with each employer's contribution formula
- BIs identical to CPP in every respect, since both are administered federally under the same act
- Is Quebec's parallel contributory plan with similar benefits and its own rates and rules
- DDoes not exist as a separate plan, since Quebec residents contribute to CPP like everyone else
Correct answer: C) Is Quebec's parallel contributory plan with similar benefits and its own rates and rules
QPP mirrors CPP for Quebec workers. Agents serving Quebec clients must apply QPP rules.
Why the other options are wrong
- AQPP is a public plan administered by Quebec, not a private one.
- BContribution rates and some provisions differ from CPP.
- DQPP is the Quebec plan; work in both provinces is coordinated.
Exam tip
QPP ≈ CPP with Quebec-specific rules; coordinated benefits.
Common mistake
Applying CPP contribution figures to a Quebec client.
What this tests
CISRO competency component 1.2 — Assess the client's needs and situation — which is weighted at 35% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 1
- The first step before recommending a segregated fund or annuity is to:
- A client's 'time horizon' for an investment is:
- 'Risk tolerance' in an investor profile refers to:
- A client says he wants 'high returns with no risk of losing money'. The agent should:
- Investment objectives are commonly classified as:
- Why is the client's marginal tax rate relevant to a segregated fund recommendation?
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.