LLQP Segregated Funds & Annuities · Component 4.2 · 10% of the exam
A beneficiary asks how long a segregated fund death claim takes. The agent should explain:
- Typically days to a few weeks after complete documents, since no probate is required
- BImmediately on notice of death, without any documents, since the insurer already holds the designation
- COnly after probate is granted, since the insurer needs the court's confirmation of the beneficiary
- DYears in most cases, since the insurer must wait for the estate to be settled and all creditors paid before releasing any funds
Correct answer: A) Typically days to a few weeks after complete documents, since no probate is required
Speed is a seg fund advantage. Preparation (correct designations, documentation) makes it real.
Why the other options are wrong
- BDocuments are required before payment.
- CNo probate is needed for named beneficiaries.
- DNamed-beneficiary claims are paid in weeks, not years.
Exam tip
Named beneficiary: payment in days to weeks after documents.
Common mistake
Failing to tell the family the claim does not wait for probate.
What this tests
CISRO competency component 4.2 — Provide customer service during the validity period of the coverage — which is weighted at 10% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 4
- A client's daughter was born last month and the client wants her added to the segregated fund designation. The agent should:
- A client wants to withdraw part of his segregated fund before maturity. The agent should explain:
- A client's segregated fund contract is approaching its maturity date. The insurer will:
- A client asks to add her adult son as a joint owner of her non-registered segregated fund contract. The agent should explain that:
- A client wants to replace the beneficiary on a contract where the current designation was made irrevocable. The agent must explain that:
- A client who has lost her job asks to pause her pre-authorized monthly contributions for six months. The agent should:
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.