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LLQP (Life Licence Qualification Program) Practice Exam · Question

What is the minimum maturity guarantee that must be offered on segregated fund contracts in Canada?

Canadian insurance legislation mandates that segregated fund contracts must provide a maturity guarantee of at least 75% of the capital invested, when held for

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Question: What is the minimum maturity guarantee that must be offered on segregated fund contracts in Canada?

Answer options:

  • 100% of deposits. ✅ 75% of deposits.
  • 100% of the highest market value.
  • 50% of deposits.

Correct answer: 75% of deposits.

Explanation: Canadian insurance legislation mandates that segregated fund contracts must provide a maturity guarantee of at least 75% of the capital invested, when held for a minimum of 10 years.

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