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LLQP · Segregated Funds and Annuities

600 Segregated Funds & Annuities Practice Questions

Published independent questions grouped by competency component. Counts are bank inventory, not an official exam distribution. Public answer access and account features depend on the current page and plan.

1.Assess the client's needs and situation

35% of the exam · 210 questions
  1. The first step before recommending a segregated fund or annuity is to:1.1
  2. A client's 'time horizon' for an investment is:1.1
  3. 'Risk tolerance' in an investor profile refers to:1.1
  4. A client says he wants 'high returns with no risk of losing money'. The agent should:1.1
  5. Investment objectives are commonly classified as:1.1
  6. Why is the client's marginal tax rate relevant to a segregated fund recommendation?1.1
  7. A client with little investment knowledge and no experience with market fluctuations should be:1.1
  8. A client's 'net worth statement' helps the agent:1.1
  9. A client's monthly cash flow shows a small surplus. This suggests:1.1
  10. A 68-year-old widow with modest savings and a need for predictable income has a profile pointing toward:1.1
  11. A 30-year-old saving for retirement with stable income and no debt has a profile pointing toward:1.1
  12. A client's 'investment experience' should be recorded because:1.1
  13. A client's dependants and family responsibilities matter to an investment recommendation because:1.1
  14. A client's 'liquidity need' refers to:1.1
  15. A business owner client with an incorporated company asks about investing surplus corporate cash. The profile should note:1.1
  16. A client is 71 this year and holds an RRSP. The situation analysis must note that:1.1
  17. A client's 'estate objectives' affect segregated fund recommendations because:1.1
  18. A self-employed client worries about creditors. This is relevant because:1.1
  19. The client profile must be:1.1
  20. A client's age affects segregated fund suitability directly because:1.1
  21. A client expects a large inheritance in two years. In profiling, the agent should:1.1
  22. Two spouses have very different risk tolerances. For a joint investment, the agent should:1.1
  23. A client wants to invest money set aside for a house down payment in 18 months. The profile suggests:1.1
  24. Which question best uncovers a client's true risk tolerance?1.1
  25. A client's employment status (employee with pension versus self-employed without one) affects the profile because:1.1
  26. A client's 'capacity for loss' is best assessed by looking at:1.1
  27. A client near retirement with all savings in one employer's stock has a profile issue of:1.1
  28. A client's stated objective is to leave the maximum to grandchildren while keeping access during her lifetime. Which profile element is most relevant?1.1
  29. 'Inflation risk' is relevant to a conservative client's profile because:1.1
  30. A client who expects to move to another country in three years should be profiled with attention to:1.1
  31. A client's existing debts at high interest rates suggest that before investing:1.1
  32. A client's 'investor profile' typically results in a classification such as:1.1
  33. A client's other advisors (accountant, lawyer) are relevant to the profile because:1.1
  34. A client insists on a product unsuitable for her profile. The agent should:1.1
  35. A client's 'source of funds' for an investment must be recorded because:1.1
  36. A client who says 'I never want to think about this again' has revealed:1.1
  37. A client's health status may be relevant to an annuity recommendation because:1.1
  38. For a client with a pension from a former employer paid as a lump-sum transfer, the profile should establish:1.1
  39. A client's objective is 'growth' but she needs to draw 6% per year from the investment. The agent should recognize:1.1
  40. A client's prior negative experience with a market crash means the agent should:1.1
  41. A client's TFSA contribution room and RRSP deduction room are part of the profile because:1.1
  42. A client mentions that she is going through a divorce. The profiling implication is:1.1
  43. A client's expected retirement age matters to the profile because:1.1
  44. Which statement about the relationship between age and risk tolerance is most accurate?1.1
  45. A client wants to invest her entire emergency fund in a segregated fund because of the guarantee. The agent should explain:1.1
  46. A client has a defined contribution pension at work with limited investment options. The profile should:1.1
  47. A client's stated income is far below what his lifestyle and assets suggest. The agent should:1.1
  48. A client asks the agent to guess her risk tolerance so she can 'skip the questionnaire'. The agent should:1.1
  49. A client's tolerance for fees should be discussed because:1.1
  50. The output of the situation analysis and profiling step should be:1.1
  51. The Canada Pension Plan retirement pension is:1.2
  52. Taking CPP at 60 rather than 65 results in:1.2
  53. Old Age Security (OAS) is:1.2
  54. The Guaranteed Income Supplement (GIS) is:1.2
  55. A Registered Retirement Savings Plan (RRSP) provides:1.2
  56. A Tax-Free Savings Account (TFSA) provides:1.2
  57. A Registered Retirement Income Fund (RRIF):1.2
  58. A Locked-In Retirement Account (LIRA) or locked-in RRSP holds:1.2
  59. A Life Income Fund (LIF) differs from a RRIF in that a LIF:1.2
  60. A Registered Education Savings Plan (RESP) offers:1.2
  61. A Registered Disability Savings Plan (RDSP) is available to:1.2
  62. A spousal RRSP allows:1.2
  63. The Home Buyers' Plan (HBP) allows an RRSP holder to:1.2
  64. A client's group RRSP at work is:1.2
  65. A client's employer contributes to a plan for her out of company profits, and she cannot add her own money. This Deferred Profit Sharing Plan:1.2
  66. A defined benefit (DB) pension plan promises:1.2
  67. A defined contribution (DC) pension plan provides:1.2
  68. The 'pension adjustment' (PA) reported on a T4:1.2
  69. A client shows the agent a contract bought years ago with a 75/75 guarantee and believes it is fully protected. The assessment should note:1.2
  70. A client's existing mutual funds differ from segregated funds mainly in that mutual funds:1.2
  71. A client holds GICs at a bank for all her savings. The assessment should note:1.2
  72. A client asks whether CPP survivor benefits will support her spouse. The agent should explain:1.2
  73. A client has a Deferred Annuity contract from years ago. The assessment should identify:1.2
  74. A client's employer offers a group TFSA. The assessment should note:1.2
  75. A client's existing segregated fund contract has a 'reset' feature. This means:1.2
  76. For a client already receiving OAS, additional RRIF withdrawals may:1.2
  77. A client has a defined benefit pension and is offered a commuted value on leaving her employer. The assessment should consider:1.2
  78. An 'unlocking' provision for locked-in funds may allow:1.2
  79. A client's existing segregated fund contract was bought with a deferred sales charge (DSC). The assessment should note:1.2
  80. A client has an RRSP and no TFSA, and is in a low tax bracket expected to rise. The assessment suggests:1.2
  81. A client's registered pension plan has a 'bridge benefit'. This is:1.2
  82. Which existing plan permits contributions for a spouse to build the spouse's retirement income without attribution issues in the long run?1.2
  83. A client asks whether her Quebec Pension Plan differs from CPP. The agent should note that QPP:1.2
  84. A client's existing non-registered segregated fund allocates income annually. The assessment should note that:1.2
  85. A client's existing coverage includes a universal life policy with a large cash value. For investment assessment, the agent should:1.2
  86. A client asks how CPP disability and the CPP retirement pension interact. The agent should explain:1.2
  87. Deposit insurance versus insurer protection: a client's segregated fund contract is protected by:1.2
  88. A client's employer sponsors a group segregated fund plan (group RRSP with seg funds). The assessment should note:1.2
  89. The 'attribution rules' matter to assessing a client's existing non-registered investments because:1.2
  90. A client's pension plan is a 'target benefit' or 'shared risk' plan. The assessment should recognize:1.2
  91. For a client who has never filed tax returns for several years, the assessment should note:1.2
  92. Assessing a client's existing life annuity in payment, the agent should identify:1.2
  93. A client's existing coverage includes a 'group annuity' from a former employer's terminated pension plan. This means:1.2
  94. A client has both a personal RRSP and a group RRSP. For the assessment:1.2
  95. A client asks whether OAS can be deferred. The agent should explain:1.2
  96. An existing segregated fund contract names the client's estate as beneficiary. The assessment should note:1.2
  97. A client's registered plans name her spouse as beneficiary (or successor annuitant/holder). The assessment should note that at her death:1.2
  98. A client is a member of a pooled registered pension plan (PRPP) or a voluntary retirement savings plan (VRSP in Quebec). These are:1.2
  99. A client's spouse died and left her a RRIF as successor annuitant. This means:1.2
  100. The summary of a client's existing coverage should include:1.2
  101. The core retirement need is best expressed as:1.3
  102. 'Longevity risk' is:1.3
  103. 'Inflation risk' in retirement planning means:1.3
  104. 'Sequence of returns risk' refers to:1.3
  105. 'Market risk' for an investor is:1.3
  106. A client who will depend entirely on personal savings for retirement (no pension) has a heightened need for:1.3
  107. A client who owns a business with creditor exposure has a need for:1.3
  108. A client wants to leave assets to children privately and quickly, avoiding probate delays and fees. The need points to:1.3
  109. A client with a large non-registered portfolio near retirement fears a market drop just before she needs the money. Her need is for:1.3
  110. A retiree needs monthly income but wants to keep control of capital and leave a residual to heirs. The need points toward:1.3
  111. A couple asks how to protect the surviving spouse's income. The need is addressed by:1.3
  112. A client's need for 'liquidity' in retirement is addressed by:1.3
  113. A client's need to fund a child's education in 12 years suggests:1.3
  114. A client is worried about the tax burden on her estate from registered plans. The need is to:1.3
  115. A retired couple in different tax brackets ask how to even out their taxable income. Their income-splitting need can be addressed by:1.3
  116. A client's greatest fear is losing her savings in a bad market year. This behavioural need can be met by:1.3
  117. A client asks how much she needs to have saved to retire. The agent's approach is to:1.3
  118. A client's need for 'flexibility' — the ability to change income and access capital — argues against:1.3
  119. A client's health is poor and family longevity is short. The need analysis suggests:1.3
  120. A client's need to reduce probate fees and keep the estate private is strongest in provinces where:1.3
  121. A client needs income now but her RRSP is her only asset and she is 58. The need analysis should address:1.3
  122. A client's need to provide for a disabled adult child after death is addressed by:1.3
  123. A client asks what 'safe withdrawal rate' she can take from her savings. The agent should explain:1.3
  124. A client's need to defer tax on non-registered savings can be met by:1.3
  125. A client is 75 with a RRIF and does not need the minimum withdrawals. The need is to:1.3
  126. A client's business will be sold in five years, producing a large capital gain. The planning need includes:1.3
  127. A client asks whether she should pay off her mortgage or invest. The need analysis compares:1.3
  128. An 'emergency fund' need in retirement is typically:1.3
  129. A client's need for 'simplicity' in retirement income can be addressed by:1.3
  130. A client asks whether she needs life insurance to cover taxes on her RRIF at death if she has no spouse. The need is:1.3
  131. A young client with high income and maxed registered plans has a need for:1.3
  132. A client's need to protect a spouse from financial mismanagement after the client's death can be addressed by:1.3
  133. A client wants guaranteed lifetime income but fears the insurer's failure. The need response includes:1.3
  134. A client's need for 'income certainty' versus 'growth potential' is usually resolved by:1.3
  135. A client's need for 'currency diversification' arises because:1.3
  136. A client's need to fund long-term care costs late in life relates to the investment plan because:1.3
  137. A client's need to avoid family disputes over the estate is helped by:1.3
  138. A client's need for growth with a defined floor — 'I want upside but cannot afford to lose my principal by retirement' — points to:1.3
  139. A client's need analysis should distinguish 'essential' from 'discretionary' retirement expenses because:1.3
  140. The needs analysis for segregated funds and annuities should be documented with:1.3
  141. A client scores as 'balanced' on the risk questionnaire but says he checks his account daily and sold everything in the last downturn. The agent should:1.1
  142. A client holds a power of attorney for her mother and wants to invest her mother's savings. The agent must establish:1.1
  143. A client tells the agent she wants to 'keep up with the market' after hearing about a colleague's returns. The agent should recognize this as:1.1
  144. A couple hold a joint non-registered account and disagree about how much risk to take. Before recommending anything the agent should:1.1
  145. A client will need a substantial sum in three years for a business expansion. For that money the profile records:1.1
  146. A client returning to Canada after a decade abroad asks about opening a TFSA. The agent should confirm:1.1
  147. A client's most important objective is that his portfolio never falls below what he invested. In the profile this records:1.1
  148. A client's income will fall sharply when she retires in two years. For the profile this means:1.1
  149. A client who is a corporate director with personal guarantees asks about protecting savings from business creditors. The profile should record:1.1
  150. A client says he has 'no idea' how his existing investments are allocated. In the profile this is:1.1
  151. A client intends to spend several months a year in another country after retiring. For the profile this raises:1.1
  152. A client's employer is being acquired and his job may end within the year. In the profile this should be recorded because it:1.1
  153. A client asks the agent to record her risk tolerance as aggressive so she can buy a fund the profile would otherwise exclude. The agent must:1.1
  154. A client with a large unused RRSP deduction room and a low current income should have recorded in the profile:1.1
  155. A client's spouse is fifteen years younger. In the profile this matters because it affects:1.1
  156. A client intends to leave a specific amount to a grandchild and the rest to charity. The profile should record:1.1
  157. A client has just received a substantial inheritance and is unsure what to do with it. The agent should first:1.1
  158. A client says she will not invest in fossil fuel companies. The agent should treat this as:1.1
  159. A client's assets are almost entirely in the home he owns. For the investor profile this means:1.1
  160. A client tells the agent his adult son will 'handle everything' but the son holds no legal authority. The agent should:1.1
  161. A client's stated objective is to 'beat inflation with no risk'. The agent's most professional response is to:1.1
  162. A client is the sole trustee of a family trust and wants to invest its funds. The profile must be built on:1.1
  163. A client mentions he has been contributing to a locked-in plan transferred from a former employer's pension. The profile should note:1.1
  164. A client's former employer offers him the choice between a deferred pension and a transfer of its commuted value. For the review the key point is:1.2
  165. A client shows the agent a statement for a group registered plan with employer matching. The review should note that:1.2
  166. A client's existing non-registered account holds units bought years ago that are now worth less than she paid. The review should note that:1.2
  167. A client's income fund is invested entirely in an equity fund and he takes the minimum each year. The review should flag:1.2
  168. A client has both a personal and a spousal registered plan. The review should note that withdrawals from the spousal plan:1.2
  169. A client's existing segregated fund contract shows both a market value and a guaranteed amount. On a statement these represent:1.2
  170. A client transferred a foreign pension to Canada years ago. The review should establish:1.2
  171. A client's non-registered portfolio holds a fund with a large unrealized gain. In the review this matters because:1.2
  172. A client's employer plan is a defined contribution pension rather than a group registered plan. The review should note that:1.2
  173. A client has been contributing to an education savings plan for one child who has decided not to study further. The review should identify:1.2
  174. A client mentions that she already owns a universal life policy with a substantial investment account inside it. The review should note that:1.2
  175. A client receiving government income-tested benefits asks about drawing from her registered plan. The review should flag:1.2
  176. A client holds segregated funds bought with a deferred sales charge seven years ago. The review should establish:1.2
  177. A client has a tax-free account she has been using for short-term savings, withdrawing and replacing amounts within the same year. The review should warn that:1.2
  178. A client's existing contract has an automatic annual reset of the death benefit. The review should record that:1.2
  179. A client's portfolio holds three balanced funds from different insurers. The review is most likely to find:1.2
  180. A client's statement shows a management expense ratio materially higher than a comparable mutual fund. The review should explain that the difference reflects:1.2
  181. A client holds a guaranteed interest option inside a segregated fund contract. Compared with a bank deposit it offers:1.2
  182. A client's registered plan names his estate as beneficiary and he has a spouse. The review should point out:1.2
  183. A client's employer offers a deferred profit sharing plan. In the review the agent should record that:1.2
  184. A client's contract has a maturity date that falls three years before he plans to retire. In the review this means:1.2
  185. A client tells the agent he has 'a pension from work' without further detail. The review must establish:1.2
  186. A client has an insurance contract with an irrevocable beneficiary and now wants to use it as loan collateral. The review should note:1.2
  187. A client plans to retire at sixty and start government pensions at sixty-five. The need this creates is:1.3
  188. A client's plan depends on drawing a fixed amount from a portfolio each year. The risk this creates is that:1.3
  189. A client whose essential expenses exceed her government pensions has a need best described as:1.3
  190. A client in good health with long-lived parents asks how long his retirement income must last. The planning response is:1.3
  191. A client wants her savings to pass to her children without the delay and cost of probate. The need points toward:1.3
  192. A client's registered plan is his largest asset and he has no spouse. The estate need this creates is:1.3
  193. A client asks why inflation matters when her guaranteed interest option cannot lose money. The need this identifies is:1.3
  194. A couple want to ensure the survivor's income does not fall sharply at the first death. The need points toward:1.3
  195. A client's plan assumes a constant rate of return every year. The agent should explain that:1.3
  196. A self-employed client with no pension asks what her greatest retirement risk is. The analysis should identify:1.3
  197. A client asks whether he should pay down his mortgage or contribute to a registered plan. The analysis compares:1.3
  198. A client wants to leave a business to one child and equivalent value to the other two. The need identified is:1.3
  199. A client keeps six months of expenses in a savings account and asks whether to invest it. The analysis should conclude:1.3
  200. A client's main concern is that a future long-term care need will consume the family's savings. The analysis should treat this as:1.3
  201. A client asks why the plan should distinguish between essential and discretionary spending. The reason is that:1.3
  202. A client in a high tax bracket with all registered room used has surplus savings each year. The need this creates is:1.3
  203. A client whose spouse has never managed money asks what would happen if he died first. The need identified is:1.3
  204. A client's portfolio is entirely in Canadian holdings. The risk the analysis should name is:1.3
  205. A client is nervous about committing a lump sum to the market in one transaction. The analysis should consider:1.3
  206. A client asks what happens to her plan if she lives to a hundred. The analysis should show:1.3
  207. A client wants to give money to adult children now rather than at death. The analysis should raise:1.3
  208. A client asks whether her plan should assume she works part time in early retirement. The analysis should:1.3
  209. A client's retirement income will come mainly from a registered plan and a small government pension. The tax need this creates is:1.3
  210. A client asks the agent to summarize the needs analysis in a single sentence. The correct summary is:1.3

2.Analyze the available products that meet the client's needs

30% of the exam · 180 questions
  1. A segregated fund is legally:2.1
  2. A money market segregated fund invests in:2.1
  3. A fixed income (bond) fund's value falls when:2.1
  4. An equity fund's primary risk and return characteristics are:2.1
  5. A balanced fund:2.1
  6. An index fund:2.1
  7. A client with no interest in managing several funds is shown a portfolio segregated fund. Such a 'fund of funds':2.1
  8. A dividend or income equity fund emphasizes:2.1
  9. A 'specialty' or sector fund:2.1
  10. The 'net asset value per unit' of a segregated fund is:2.1
  11. The 'management expense ratio' (MER) of a segregated fund includes:2.1
  12. Segregated funds are managed by:2.1
  13. Diversification within a fund reduces:2.1
  14. The risk classification of a segregated fund (low, low-to-medium, medium, medium-to-high, high) is based mainly on:2.1
  15. 'Standard deviation' as a risk measure tells the client:2.1
  16. A 'target-date' or lifecycle segregated fund:2.1
  17. An 'asset allocation' decision refers to:2.1
  18. 'Rebalancing' a portfolio of segregated funds means:2.1
  19. 'Dollar-cost averaging' through pre-authorized contributions:2.1
  20. A segregated fund that invests in foreign equities exposes the client to:2.1
  21. Within a segregated fund contract, the client can typically:2.1
  22. A 'guaranteed interest' option within a segregated fund contract or an insurer's accumulation annuity:2.1
  23. The 'information folder' for a segregated fund is:2.1
  24. Segregated fund units differ from mutual fund units in that seg fund units:2.1
  25. A high-yield bond fund carries more risk than a government bond fund because:2.1
  26. A 'real estate' or 'infrastructure' segregated fund:2.1
  27. The 'valuation date' for a segregated fund transaction is:2.1
  28. Which fund type best suits a client who needs the money within one year?2.1
  29. Active versus passive management in segregated funds: the trade-off is:2.1
  30. A conservative client's portfolio of segregated funds would typically emphasize:2.1
  31. A client asks what the insurer actually promises under the maturity guarantee of her segregated fund. It promises that:2.2
  32. A client's daughter is named beneficiary on his segregated fund. Under the death benefit guarantee, at his death:2.2
  33. Guarantee levels are commonly expressed as 75/75, 75/100 or 100/100. The numbers refer to:2.2
  34. A client asks when the maturity guarantee on a new deposit will actually apply. The maturity date is typically:2.2
  35. A 'reset' of the guarantee:2.2
  36. The main advantage of a segregated fund's beneficiary designation compared with a non-registered mutual fund is:2.2
  37. Creditor protection for a segregated fund is available when:2.2
  38. Compared with mutual funds, segregated funds generally have:2.2
  39. For tax purposes, a non-registered segregated fund allocates income and capital gains/losses to the contract holder annually. Compared with mutual funds, a key difference is:2.2
  40. When a segregated fund guarantee 'tops up' the value at maturity or death, the top-up is:2.2
  41. Switching between funds within a segregated fund contract is:2.2
  42. A segregated fund's guarantee is backed by:2.2
  43. A 'guaranteed minimum withdrawal benefit' (GMWB) segregated fund contract provides:2.2
  44. Under a GMWB contract, the 'guaranteed withdrawal base' or 'bonus base':2.2
  45. A segregated fund's 'proportional reduction' of guarantees on withdrawal means:2.2
  46. A client owns a segregated fund contract but wants the death benefit measured on his younger wife's life. The 'annuitant' is:2.2
  47. A client wants to name her brother as an irrevocable beneficiary to strengthen creditor protection. An irrevocable designation means:2.2
  48. A segregated fund compared with a GIC offers:2.2
  49. The 'free-look' or rescission right for a segregated fund contract allows the client to:2.2
  50. For a business owner client, holding investments in a segregated fund rather than a brokerage account may add:2.2
  51. Segregated funds held within an RRSP or TFSA:2.2
  52. Which client benefits LEAST from a segregated fund's features?2.2
  53. A widow asks how she will receive the death benefit from her late husband's segregated fund. It is paid:2.2
  54. A segregated fund contract's guarantees may be reduced or unavailable if:2.2
  55. A client asks whether a segregated fund is 'safer' than a mutual fund. The accurate answer is:2.2
  56. 'Dollar-for-dollar' reduction of guarantees on withdrawal, where offered, is:2.2
  57. A segregated fund's 'settlement option' at the annuitant's death can allow:2.2
  58. An advantage of segregated funds for estate planning where a will is contested is:2.2
  59. The insurance fee component of a segregated fund MER pays for:2.2
  60. A summary of when a segregated fund is the better choice over a comparable mutual fund is when the client:2.2
  61. An annuity is:2.3
  62. An immediate annuity:2.3
  63. A deferred annuity:2.3
  64. A life annuity pays:2.3
  65. A 70-year-old bachelor with no heirs wants the highest possible monthly income. A straight life annuity with no guarantee period:2.3
  66. A life annuity with a '10-year guarantee period' means:2.3
  67. A joint-and-last-survivor annuity:2.3
  68. A term-certain annuity:2.3
  69. An 'indexed' annuity:2.3
  70. An 'impaired' or 'enhanced' annuity:2.3
  71. The factors that determine the income from a life annuity include:2.3
  72. A retiree buys a level non-registered annuity with savings and asks how the CRA will tax it. A prescribed annuity is taxed:2.3
  73. A non-prescribed (accrual-taxed) non-registered annuity:2.3
  74. An annuity purchased with RRSP or RRIF funds (registered annuity) has payments taxed:2.3
  75. An annuity's 'commutation' refers to:2.3
  76. A 'cash refund' or 'instalment refund' annuity:2.3
  77. 'Annuity certain to age 90' is relevant because:2.3
  78. An 'accumulation annuity' with a guaranteed interest rate compares with a GIC in that it:2.3
  79. The main disadvantage of a life annuity is:2.3
  80. A 'variable' or 'equity-indexed' annuity differs from a fixed annuity in that:2.3
  81. The pension income tax credit and pension income splitting apply to:2.3
  82. Assuris protection for annuity payments guarantees:2.3
  83. 'Annuitization' of a segregated fund contract at maturity means:2.3
  84. A client asks how annuity income compares in a low-interest-rate environment. The agent should explain:2.3
  85. For a couple using locked-in pension funds to buy an annuity, pension legislation typically requires:2.3
  86. A 'capital accumulation plan' (CAP) is:2.4
  87. A group RRSP compared with a DC pension plan:2.4
  88. A DC registered pension plan's employer contributions are:2.4
  89. A small-business owner wants to enrol himself, his wife and his staff in the company's DPSP. The plan cannot include as members:2.4
  90. A group TFSA:2.4
  91. The advantages of group retirement plans for the employee include:2.4
  92. A group plan's 'default investment option' matters because:2.4
  93. On leaving an employer with a DC pension, the member's options typically include:2.4
  94. A group RRSP's employer contribution is treated as:2.4
  95. The sponsor's responsibilities under the CAP Guidelines include:2.4
  96. An Individual Pension Plan (IPP) is:2.4
  97. A Registered Pension Plan's 'vesting' means:2.4
  98. A 'supplemental executive retirement plan' (SERP):2.4
  99. A 'group annuity' in the retirement context is:2.4
  100. The member's responsibilities in a capital accumulation plan include:2.4
  101. A segregated fund's 'guaranteed amount' after a partial withdrawal under proportional reduction is:2.2
  102. A distinctive estate advantage of a segregated fund over a non-registered mutual fund held jointly with a child is:2.2
  103. Segregated fund guarantees are most valuable relative to their cost when:2.2
  104. A segregated fund's annual statement reports:2.2
  105. Compared with a segregated fund, an exchange-traded fund (ETF) generally offers:2.2
  106. A segregated fund's 'automatic death benefit reset' feature:2.2
  107. An 'excess withdrawal' under a GMWB contract:2.2
  108. A GMWB contract's 'income bonus' (deferral bonus):2.2
  109. A 'deferred life annuity' purchased with pension or RRSP funds:2.3
  110. A 'joint-and-survivor annuity with reducing survivor benefit' pays:2.3
  111. A 'life annuity with a cash refund at death' compared with one with a '15-year guarantee' differs in that:2.3
  112. The 'exclusion ratio' concept underlying prescribed annuity taxation means:2.3
  113. 'Annuity laddering' means:2.3
  114. A group RRSP's 'withdrawal restriction' imposed by the employer:2.4
  115. A DPSP's vesting period under the Income Tax Act is at most:2.4
  116. A member's investment choices in a DC pension plan are typically limited to:2.4
  117. The main risk to a member of a DC plan compared with a DB plan is:2.4
  118. An employer asks whether to offer a group RRSP or a DC pension. Key differences include:2.4
  119. A member leaving a group RRSP may:2.4
  120. An agent servicing a group retirement plan should help members by:2.4
  121. Two equity segregated funds report the same average annual return over ten years, but one swung far more from year to year. The client should understand that:2.1
  122. A client notices that the unit value of her non-registered segregated fund fell on the day the fund allocated its annual income. The agent should explain that:2.1
  123. A client holds a segregated fund that invests in foreign equities and is told the fund is 'currency hedged'. This means that:2.1
  124. A cautious client is shown a mortgage segregated fund. The agent should describe it as a fund that:2.1
  125. An agent compares two bond segregated funds and notes that one has a much longer average duration. The practical consequence is that:2.1
  126. A client is considering a fund-of-funds segregated contract. The agent must point out that:2.1
  127. A segregated fund whose sole holding is units of a corresponding mutual fund is commonly described as:2.1
  128. A client asks what distinguishes a growth equity segregated fund from a value equity segregated fund. The agent should explain that:2.1
  129. A client wants a fund holding shares of very small Canadian companies. The main additional risk the agent must disclose is that:2.1
  130. A retired client wants a predictable monthly amount from a non-registered segregated fund. The agent explains that a systematic withdrawal plan:2.1
  131. A fund is marketed as a 'low volatility' equity segregated fund. The most accurate thing the agent can tell the client is that:2.1
  132. A client asks why a deferred sales charge option shows a lower management expense ratio than the fund's front-end option. The agent should explain that:2.1
  133. A client wants a segregated fund investing in emerging markets. Beyond ordinary equity risk, the agent must disclose:2.1
  134. A client complains that her balanced segregated fund returned less than the stock market index last year. The agent should explain that:2.1
  135. A prospective client chooses a fund solely because it had the best return of any fund on the insurer's list last year. The agent should:2.1
  136. An insurer announces that one of its segregated funds is closed to new deposits. For an existing contract holder this normally means:2.1
  137. A client's segregated fund contract reaches its maturity date during a severe market decline. The maturity guarantee means that:2.2
  138. A client exercises a reset on her segregated fund after a strong year. The agent must also explain that a reset usually:2.2
  139. A client asks why a contract with full maturity and death guarantees costs more than one at the lowest guarantee level. The agent should explain that:2.2
  140. A client who is already insolvent transfers savings into a segregated fund and names his spouse as beneficiary, hoping to defeat his creditors. The agent should understand that:2.2
  141. A client wants to name her eight-year-old son as beneficiary of her segregated fund contract. The agent should advise that:2.2
  142. A client dies holding a non-registered segregated fund with a named beneficiary and a large unrealized gain. The estate should expect that:2.2
  143. A client switches from an equity fund to a bond fund inside the same segregated fund contract. The effect on the guarantees is that:2.2
  144. A segregated fund contract has an older annuitant and names the contract holder's spouse as successor annuitant. The death benefit guarantee will be triggered:2.2
  145. An insurer pays a top-up under the death benefit guarantee on a non-registered segregated fund. For tax purposes the top-up is:2.2
  146. A client holds segregated funds inside an RRSP and asks what the guarantees add, given that registered plans already offer some creditor protection. The best answer is that:2.2
  147. A client asks whether the guaranteed amount on her segregated fund contract keeps pace with the cost of living. The agent should explain that:2.2
  148. A forty-year-old client with a twenty-five-year horizon asks whether to pay for the highest guarantee level available. The agent should explain that:2.2
  149. A beneficiary asks whether the death benefit on a segregated fund is payable when the annuitant died by suicide a year after the contract was issued. The agent should explain that:2.2
  150. A client compares a segregated fund with a guaranteed investment certificate held at a bank. A genuine advantage of the segregated fund is that it:2.2
  151. A retiring client fears that a fixed monthly annuity payment will buy less in twenty years. The annuity feature that addresses this concern directly is:2.3
  152. A client aged seventy is buying an annuity with savings and is married to a spouse aged sixty. The design that best protects the household income is:2.3
  153. A client buying a life annuity wants assurance that his children receive something if he dies shortly after purchase. The most direct way to achieve this is:2.3
  154. A client asks why the annuity quote she received last month is no longer available. The agent should explain that:2.3
  155. A retiree buys a prescribed non-registered annuity. The tax feature that makes this attractive is that:2.3
  156. A client in poor health with a shortened life expectancy is considering a life annuity. The agent should mention that:2.3
  157. A sixty-five-year-old client asks whether to buy a life annuity now or at age seventy-five. The agent should explain that waiting generally:2.3
  158. A client compares converting her registered savings to a life annuity with converting them to a registered retirement income fund. A key difference is that the annuity:2.3
  159. A client retiring with locked-in pension money asks about her options. The agent should explain that locked-in funds generally may be used to:2.3
  160. A client asks whether he can cancel his life annuity in two years if his circumstances change. The agent should tell him that:2.3
  161. A retiree wants guaranteed income for essential expenses but flexibility for everything else. The most suitable approach is generally to:2.3
  162. A client with a very large sum to annuitize asks what happens if the insurer fails. The agent should explain that:2.3
  163. A client holds an old deferred annuity with a guaranteed interest rate well above what is available today. The agent should:2.3
  164. A couple used a spousal registered savings plan for several years and now want to convert it to an annuity. The agent should confirm that:2.3
  165. A sixty-six-year-old client asks whether annuity income qualifies for the pension income tax credit. The agent should explain that:2.3
  166. An employee wants to withdraw from her group registered savings plan to buy a car. The agent should first check:2.4
  167. A member of a defined contribution pension plan is retiring. Her options typically include:2.4
  168. A member of a registered pension plan is surprised that his personal contribution room is smaller than expected. The agent should explain that:2.4
  169. An employee asks why contributing through payroll to a group plan feels better than contributing personally and claiming a deduction later. The agent should explain that payroll contributions:2.4
  170. A member notices the funds in her group plan carry lower management expense ratios than the retail versions of the same funds. The reason is that:2.4
  171. An employee leaves a job with a small defined contribution pension balance. Pension legislation in many jurisdictions:2.4
  172. A group plan member never selected an investment option when he enrolled. The agent should explain that his contributions have been:2.4
  173. An agent who services a group plan is asked by one member for individual advice about her own account. The agent must:2.4
  174. A long-serving employee leaves a defined benefit plan and is offered a commuted value transfer. The agent should explain that taking the transfer means:2.4
  175. An employer asks whether staff may contribute to the company's deferred profit sharing plan. The agent should answer that:2.4
  176. An employee changing jobs asks whether to leave her balance in the former employer's group savings plan. The agent should point out that:2.4
  177. A low-income employee asks whether to direct her savings to the group registered plan or the group tax-free account. A relevant consideration is that:2.4
  178. An employer wants a retirement arrangement without sponsoring its own pension plan. The agent could describe a pooled registered pension plan as one that:2.4
  179. A group plan member asks whether he can name his sister as beneficiary of his group savings plan. The agent should explain that:2.4
  180. Under the guidelines for capital accumulation plans, the sponsor's responsibility to members includes:2.4

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

25% of the exam · 150 questions
  1. A suitable segregated fund recommendation must reconcile:3.1
  2. A 45-year-old with a 20-year horizon, growth objective and moderate risk tolerance, who wants some protection at retirement, is most suitably recommended:3.1
  3. A 72-year-old with a RRIF, concerned about leaving assets intact for children and avoiding probate, is most suitably recommended:3.1
  4. When choosing between 75/75 and 100/100 guarantee levels, the agent should consider:3.1
  5. The sales charge options for segregated funds typically include:3.1
  6. Between an RRSP and a TFSA for a segregated fund deposit, the recommendation depends mainly on:3.1
  7. For a client with both registered and non-registered assets, 'asset location' suggests:3.1
  8. The maturity date of a segregated fund guarantee should be set:3.1
  9. A recommendation to reset the guarantee should consider:3.1
  10. Recommending a GMWB contract is most suitable for:3.1
  11. For a 68-year-old with no pension and modest savings who needs certainty for essential expenses, the recommendation should consider:3.1
  12. When recommending an annuity to a married client, the agent should generally propose:3.1
  13. A client asks whether to buy a level or indexed annuity. The recommendation should weigh:3.1
  14. For a non-registered annuity purchase by an individual seeking tax efficiency, the recommendation should:3.1
  15. A client wants creditor protection through a segregated fund. The recommendation should specify:3.1
  16. For a client who wants to keep control over the death benefit's use by a young beneficiary, the recommendation might include:3.1
  17. When a client's need is 'lowest cost growth with no estate or creditor concerns', the honest recommendation is:3.1
  18. For a client converting an RRSP at 71 who wants flexibility now and lifetime certainty later, a suitable recommendation is:3.1
  19. A client wants to name her spouse as annuitant on a non-registered seg fund contract she owns. The agent should explain:3.1
  20. A recommendation for a corporation investing surplus cash in segregated funds should address:3.1
  21. A client wants to make a large deposit at age 82. The recommendation must check:3.1
  22. When recommending a segregated fund to replace an existing mutual fund, the agent should:3.1
  23. For a client with a moderate profile who is very anxious about losses, the recommendation may reasonably include:3.1
  24. A client asks whether to take CPP at 60 and invest it. The recommendation should consider:3.1
  25. A recommendation should be presented to the client with:3.1
  26. A client asks whether she should borrow to invest in segregated funds. The agent should:3.1
  27. For a client whose main objective is income today from non-registered savings with tax efficiency, a recommendation could compare:3.1
  28. A client with a short horizon (3 years) insists on a segregated fund for the guarantee. The suitable recommendation is:3.1
  29. When recommending a RESP invested in segregated funds, the design should:3.1
  30. A client wants a segregated fund for its probate bypass but has named the estate on all her registered plans. The recommendation should include:3.1
  31. A recommendation for a young couple saving for a first home in five years should:3.1
  32. Fee-based versus commission-based compensation for a segregated fund recommendation:3.1
  33. A client with a large registered balance and no spouse is concerned about the tax at death. The recommendation may include:3.1
  34. A client asks for a 'guaranteed 8% return' product. The agent should:3.1
  35. The written recommendation should document:3.1
  36. A client with a spouse 8 years younger is opening a RRIF. The recommendation should include:3.1
  37. A recommendation to a client in poor health who wants lifetime income should consider:3.1
  38. A client's recommendation includes both a RRIF and a TFSA. For withdrawals, the sequencing advice is usually:3.1
  39. A client's recommendation includes an annuity purchased with locked-in funds. The design must comply with:3.1
  40. A client asks whether she can change her mind after buying a segregated fund. The agent should explain:3.1
  41. For a client whose group RRSP offers only high-fee funds, the recommendation may be:3.1
  42. A client's recommendation involves naming her adult child as beneficiary of a non-registered seg fund while her will leaves everything to her spouse. The agent should:3.1
  43. A recommendation for a client with a moderate profile and 10-year horizon might use resets by:3.1
  44. A client wants income from a segregated fund without annuitizing. The recommendation could use:3.1
  45. A recommendation should address the risk of insurer insolvency by:3.1
  46. A client's recommendation includes a segregated fund with a 100% death guarantee at 78. The agent should verify:3.1
  47. A recommendation for a very conservative client with a long horizon should still address:3.1
  48. A client asks the agent to recommend 'the best fund'. The agent should:3.1
  49. For a client who wants a simple lifetime income with maximum estate protection and has ample assets, a suitable structure is:3.1
  50. A recommendation should set a 'review schedule' because:3.1
  51. A recommendation for a client who values ESG (environmental, social, governance) investing should:3.1
  52. When recommending a segregated fund for a client's TFSA, the agent should note that:3.1
  53. A recommendation to a client with a defined benefit pension covering all essential expenses would typically:3.1
  54. A client asks whether a segregated fund's guarantee is worth it if she plans to withdraw gradually over 20 years. The honest analysis is:3.1
  55. When a client will be the owner but wants her spouse to receive the contract on her death and continue it (non-registered seg fund), the recommendation might use:3.1
  56. A recommendation should describe segregated fund 'guarantee limits' honestly, including that:3.1
  57. For a client whose objective is to pass wealth to grandchildren while the parents are alive, the recommendation may use:3.1
  58. A client with a high income this year and low expected income next year should be recommended to:3.1
  59. A client's recommendation for a deposit into a segregated fund with a cancer diagnosis in progress should consider:3.1
  60. The final check before implementing a segregated fund or annuity recommendation is to confirm that:3.1
  61. Before or at the time of taking a segregated fund application, the agent must provide the client with:3.2
  62. The segregated fund application requires:3.2
  63. Anti-money-laundering requirements for segregated fund and annuity sales include:3.2
  64. A 'third-party determination' on the application asks:3.2
  65. For a registered plan transfer from another institution into a segregated fund RRSP, the agent should:3.2
  66. For locked-in transfers (LIRA to LIRA or LIF), additional requirements include:3.2
  67. When funds arrive from the sale of a non-registered mutual fund to buy a seg fund, the implementation should:3.2
  68. The agent's authority in implementing a segregated fund contract:3.2
  69. For an annuity purchase, the implementation requirements include:3.2
  70. An impaired annuity application additionally requires:3.2
  71. The rescission (free-look) right for segregated funds must be:3.2
  72. The contract and confirmation notice issued by the insurer should be reviewed with the client to confirm:3.2
  73. A client wants to fund a segregated fund with a large cash deposit. The agent must:3.2
  74. For a segregated fund purchase through a corporation, the implementation requires:3.2
  75. A power of attorney signing a segregated fund application on behalf of an incapable client:3.2
  76. A joint ownership application for a non-registered segregated fund should confirm:3.2
  77. A pre-authorized contribution (PAC) set-up requires:3.2
  78. The suitability documentation required at implementation includes:3.2
  79. For a RRIF set-up, the implementation must record:3.2
  80. The effective date of a segregated fund deposit is:3.2
  81. If the client's health changes between an annuity application and issue, the effect is:3.2
  82. A client wants to designate a beneficiary irrevocably at implementation. The agent must:3.2
  83. A client without government-issued photo ID can be identified for AML purposes by:3.2
  84. For a segregated fund sold within a group plan, implementation requirements differ in that:3.2
  85. A client asks the agent to hold the signed application and deposit until 'a better market day'. The agent should:3.2
  86. The 'trusted contact person' (TCP) collected at implementation is:3.2
  87. A client's deposit cheque bounces after units were allocated. The insurer will typically:3.2
  88. For a TFSA segregated fund opened for a client who has been a non-resident, the implementation must confirm:3.2
  89. A 'replacement' or transfer of an existing segregated fund contract to a new one requires the agent to:3.2
  90. A client wants to name her estate as beneficiary 'for simplicity'. At implementation the agent should:3.2
  91. Fund facts documents must be delivered:3.2
  92. For an RESP set up with segregated funds, implementation requires:3.2
  93. At delivery, the agent should confirm the client understands the segregated fund 'maturity date' by:3.2
  94. A client's spouse must sign for:3.2
  95. When the insurer requests additional information after the application (for example, source of wealth for a large deposit), the agent should:3.2
  96. The implementation of a recommendation involving a switch from one seg fund to another within a contract requires:3.2
  97. A client wishes to designate a charity as beneficiary of a segregated fund. Implementation should:3.2
  98. For a deferred annuity implemented for a client, the agent should confirm:3.2
  99. The agent's record of the implementation should be retained:3.2
  100. Implementation is complete when:3.2
  101. A client wants to invest an inheritance in segregated funds while carrying a large balance on a credit card charging a very high rate. The agent should:3.1
  102. A husband does all the talking at a meeting and answers every question on behalf of his wife, who will own the contract. The agent should:3.1
  103. A client tells the agent he expects to leave Canada permanently within two years. Before recommending a segregated fund the agent should:3.1
  104. A client ticks the highest risk tolerance on the questionnaire, then mentions she sold everything during the last market decline. The agent should:3.1
  105. A retiree who will spend entirely in Canadian dollars is choosing between a hedged and an unhedged foreign equity segregated fund. The agent should explain that:3.1
  106. A nervous client has a large lump sum and fears investing it just before a decline. A reasonable recommendation is to:3.1
  107. A client insists on placing all her savings in one technology sector segregated fund after reading about its returns. The agent should:3.1
  108. A client's only stated goal is to hold money he may need at any moment for household emergencies. The appropriate recommendation is:3.1
  109. A client aged fifty plans to retire at sixty-five and will draw on the deposit then. The maturity date of the guarantee should be set:3.1
  110. A client wants to save for an adult son who qualifies for the disability tax credit. Before recommending a segregated fund in her own name, the agent should:3.1
  111. A client widowed three weeks ago asks the agent to invest the insurance proceeds immediately in something aggressive. The agent should:3.1
  112. A client wants to leave a segregated fund death benefit to a son who receives provincial disability benefits. The agent should:3.1
  113. A client's savings are already dominated by shares of the employer she works for. A sound recommendation for new money would be to:3.1
  114. Parents ask how to invest education savings for two children, one starting studies in three years and one in fifteen. The agent should recommend:3.1
  115. When presenting a segregated fund recommendation, the agent's explanation of fees should make clear that:3.1
  116. A young client has no creditors, no estate concerns, a thirty-year horizon and wants the lowest cost growth. The most honest recommendation is:3.1
  117. A client's retirement target requires a return well above what her stated risk tolerance can support. The agent should:3.1
  118. A client listens to the agent's recommendation and chooses a different, more conservative option. The agent should:3.1
  119. A client with a large accrued gain in a non-registered segregated fund is offered a similar contract by another insurer. The agent should explain that moving:3.1
  120. A client agrees to move gradually from a money market fund into equity funds within the same contract. The agent should confirm that:3.1
  121. A client in a second marriage wants his current spouse supported for life but the capital to reach the children of his first marriage. The agent should:3.1
  122. A healthy client with several relatives who lived past ninety-five is choosing a retirement income structure. This history strengthens the case for:3.1
  123. A client will retire with government benefits and modest savings and may qualify for an income-tested supplement. The agent should consider that:3.1
  124. A prospective client holds a temporary work permit and is unsure of her residence status for tax purposes. Before recommending a registered plan the agent should:3.1
  125. After a full discussion, a client still insists on a product the agent believes is unsuitable for her. The agent's correct course is to:3.1
  126. A client in a hurry signs a blank application and asks the agent to fill in the details later. The agent must:3.2
  127. A client's spouse offers to sign the application on the client's behalf because the client is travelling. The agent should:3.2
  128. A client proposes to fund a deposit with a cheque drawn on a company account belonging to her employer. At implementation the agent must:3.2
  129. During implementation the agent learns that the client held a senior position in a foreign government. This means the agent must:3.2
  130. An agent completing an application remotely cannot examine the client's identity document in person. An acceptable alternative is to:3.2
  131. A client presents a driver's licence that expired last year as identification. The agent should:3.2
  132. The name on the client's identification differs from the name written on the application. The agent should:3.2
  133. A client asks to make several deposits just below the reporting threshold rather than one larger deposit. The agent should recognize this as:3.2
  134. A client telephones to instruct a switch between funds in her contract. The agent should:3.2
  135. An agent receives a client's issued contract from the insurer and sets it aside for a few weeks. The main problem with this delay is that:3.2
  136. An agent submits a transfer form to move a client's registered plan from another institution. Before telling the client the move is complete, the agent should:3.2
  137. A client asks the agent to date an application a week earlier so a more favourable fund price applies. The agent must:3.2
  138. An agent is implementing a transfer of locked-in pension money into a life income fund for a married client. The implementation will normally require:3.2
  139. A client telephones to increase the amount of her pre-authorized monthly contribution. The agent should explain that:3.2
  140. A registered transfer will take several weeks during which the client's money is not invested. At implementation the agent should:3.2
  141. A client selects three different funds within one segregated fund contract. The disclosure obligation at implementation is that:3.2
  142. A client asks how the agent is paid for arranging the segregated fund contract. The agent should:3.2
  143. A prospective client speaks limited English and brings a friend to interpret. At implementation the agent should:3.2
  144. A client's daughter presents a power of attorney and asks to open a segregated fund contract for her mother. The agent must:3.2
  145. Two clients want a non-registered segregated fund held jointly so the survivor takes the whole contract. At implementation the agent should:3.2
  146. A client wants to split the death benefit among three children in unequal shares. At implementation the agent must ensure that:3.2
  147. A client names her only sister as beneficiary and asks what happens if the sister dies before her. The agent should recommend:3.2
  148. The confirmation notice for a client's purchase arrives showing a different fund from the one instructed. The agent should:3.2
  149. An agent completes a sale and files the application and the confirmation notice. The record of the transaction is incomplete unless it also shows:3.2
  150. Before collecting financial and health information on an application, the agent must:3.2

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

10% of the exam · 60 questions
  1. A client's daughter was born last month and the client wants her added to the segregated fund designation. The agent should:4.1
  2. A client wants to withdraw part of his segregated fund before maturity. The agent should explain:4.1
  3. A client's segregated fund contract is approaching its maturity date. The insurer will:4.1
  4. A client wants to add a deposit to an existing segregated fund contract at age 80. The agent should check:4.1
  5. A client asks to exercise a reset on her contract. The agent should:4.1
  6. A client wants to transfer ownership of a non-registered segregated fund to her adult child. The agent should explain:4.1
  7. A client's segregated fund contract is being used as collateral for a bank loan. This requires:4.1
  8. A client asks to change the annuitant on a segregated fund contract. The agent should explain:4.1
  9. A client's RRIF minimum withdrawal changes each year because:4.1
  10. A client wants to cancel a segregated fund contract shortly after purchase, outside the rescission period. The agent should explain:4.1
  11. An annuitant asks to change the payment frequency of an annuity in payment. The agent should explain:4.1
  12. A client's marriage breaks down. Service actions include:4.1
  13. A client's annual review should cover, for segregated funds and annuities:4.1
  14. A client asks to switch from an equity fund to a money market fund within her contract during a market decline. The agent should:4.1
  15. A client wants to convert her segregated fund RRSP to a RRIF at 65 to use the pension income credit. The agent should:4.1
  16. A client's guaranteed interest option within the contract is maturing. The service action is to:4.1
  17. A client reports that her address and marital status changed and she has a new employer with a pension. The agent should:4.1
  18. A client wishes to designate her segregated fund to pay by settlement option (instalments) to her son at her death. The amendment requires:4.1
  19. A client asks whether the insurer can change the fees on her segregated fund. The agent should explain:4.1
  20. A client's contract is being merged or the fund closed by the insurer. The client's rights include:4.1
  21. When the annuitant of a segregated fund dies, the beneficiary must provide:4.2
  22. An insurer is settling a segregated fund death claim where the market value has fallen below the deposits. The death benefit is calculated as:4.2
  23. The agent's role in a segregated fund death claim is to:4.2
  24. For a non-registered segregated fund death benefit, the tax treatment is:4.2
  25. For a registered (RRSP/RRIF) segregated fund death benefit paid to a non-spouse adult child:4.2
  26. For a registered segregated fund with the spouse named as beneficiary or successor annuitant:4.2
  27. A TFSA segregated fund with the spouse as successor holder, at death:4.2
  28. When the beneficiary of a segregated fund is a minor, the death benefit:4.2
  29. A beneficiary asks how long a segregated fund death claim takes. The agent should explain:4.2
  30. At the maturity date of a segregated fund contract, the 'claim' process involves:4.2
  31. An annuitant with a 15-year guarantee period dies in year six. The beneficiary:4.2
  32. When an annuitant dies after the guarantee period of a single-life annuity:4.2
  33. For a joint-and-survivor annuity on the first death, the survivor should:4.2
  34. A segregated fund's death benefit is paid to a named beneficiary but the deceased's creditors claim it. The agent should explain:4.2
  35. A death claim where the estate is the beneficiary requires:4.2
  36. A beneficiary of a registered segregated fund who is a financially dependent child or grandchild (minor or infirm) may:4.2
  37. A beneficiary designation is disputed because two forms with different beneficiaries exist. The insurer will typically:4.2
  38. A beneficiary asks whether they must accept the death benefit as a lump sum. The agent should explain:4.2
  39. If a claim is denied or delayed, the beneficiary's recourse includes:4.2
  40. After a death claim is paid, the agent should:4.2
  41. A client asks to add her adult son as a joint owner of her non-registered segregated fund contract. The agent should explain that:4.1
  42. A client wants to replace the beneficiary on a contract where the current designation was made irrevocable. The agent must explain that:4.1
  43. A client who has lost her job asks to pause her pre-authorized monthly contributions for six months. The agent should:4.1
  44. A client is considering replacing her existing segregated fund contract with one from another insurer. Before any replacement the agent must:4.1
  45. A client who bought a segregated fund contract in Ontario has now moved permanently to Quebec. The agent should:4.1
  46. A client's deferred sales charge schedule has now run its course. The service opportunity this creates is that:4.1
  47. A client requests a withdrawal that would leave less than the contract's minimum balance. The agent should explain that the insurer may:4.1
  48. A client with a guaranteed minimum withdrawal benefit contract asks to take more than the permitted annual amount. The agent must warn that:4.1
  49. A client asks whether the maturity date on her segregated fund contract can be brought forward by five years. The agent should explain that:4.1
  50. A client holds two non-registered segregated fund contracts with the same insurer and asks to merge them into one. The agent should explain that:4.1
  51. The named beneficiary of a deceased client's segregated fund lives outside Canada. The agent should explain that the claim:4.2
  52. A family discovers a segregated fund contract a year after the annuitant died and asks whether it is too late to claim. The agent should explain that:4.2
  53. A client dies holding a segregated fund with no beneficiary named and no will. The proceeds will:4.2
  54. An annuitant died while travelling abroad and the beneficiary asks what the insurer will require. The agent should explain that:4.2
  55. A client's daughter is both the executor of the estate and the named beneficiary of a segregated fund. The agent should explain that she:4.2
  56. A contract holder made several withdrawals before dying while the market value sat below the guaranteed amount. The death benefit will be:4.2
  57. A client gives the insurer no instructions as her contract reaches its maturity date. The insurer will typically:4.2
  58. Two relatives each claim to be the rightful beneficiary of a death benefit and ask the agent to decide. The agent should:4.2
  59. A beneficiary would rather receive the death benefit over several years than as a single payment. The agent should explain that this is possible:4.2
  60. An annuitant and the sole named beneficiary die in the same accident and the order of death cannot be established. The proceeds will generally:4.2

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