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LLQP · Segregated Funds and Annuities

600 Segregated Funds & Annuities Practice Questions

Grouped by the competency components CISRO uses to build the exam, in the same proportions. Each question opens to its answer and a worked explanation.

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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