LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
A client asks the agent to date an application a week earlier so a more favourable fund price applies. The agent must:
- refuse, because backdating misrepresents the transaction and is a serious breach
- Bcomply only if the fund price on that earlier date can still be verified by the insurer
- Crefuse but offer instead to select the best price achieved during the preceding week
- Dcomply, since the client accepts responsibility for the date written on the application
Correct answer: A) refuse, because backdating misrepresents the transaction and is a serious breach
An application must show the date it was actually signed. Backdating would give the client a price nobody could have obtained and misleads the insurer, so it is a form of falsification regardless of who suggested it.
Why the other options are wrong
- BVerifying an old price does not make it available for a transaction signed later.
- CChoosing a past price is the same misconduct described differently.
- DThe client cannot authorize the agent to falsify a document.
Exam tip
Backdating any document is falsification, however small the advantage sought.
Common mistake
Treating a date adjustment as an accommodation rather than a falsification.
What this tests
CISRO competency component 3.2 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 3
- A client's spouse must sign for:
- When the insurer requests additional information after the application (for example, source of wealth for a large deposit), the agent should:
- The implementation of a recommendation involving a switch from one seg fund to another within a contract requires:
- A client wishes to designate a charity as beneficiary of a segregated fund. Implementation should:
- For a deferred annuity implemented for a client, the agent should confirm:
- The agent's record of the implementation should be retained:
Practice the whole Segregated Funds & Annuities module
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