LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
A client in a hurry signs a blank application and asks the agent to fill in the details later. The agent must:
- Asubmit the blank form and ask the insurer to fill in the missing information from its records
- complete the form with the client, because a signature on a blank application is prohibited
- Caccept it, since the client has consented and the details will be completed accurately
- Dcomplete it and have a colleague witness the signature to confirm the client's agreement
Correct answer: B) complete the form with the client, because a signature on a blank application is prohibited
Signing a blank or incomplete application is a recognized misconduct because the client is agreeing to terms that do not yet exist. The application must be completed and reviewed with the client before it is signed.
Why the other options are wrong
- AThe insurer cannot supply the client's own declarations and instructions.
- CConsent to unknown contents is not meaningful consent at all.
- DA second signature does not cure a blank form; it adds a false witnessing.
Exam tip
A blank signed application is misconduct, whatever the client says about convenience.
Common mistake
Accepting a pre-signed form to save a client a second appointment.
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
Timed sets weighted like the exam, and review of every question you miss. Free to start.