LLQP Segregated Funds & Annuities · Component 2.2 · 30% of the exam
A client owns a segregated fund contract but wants the death benefit measured on his younger wife's life. The 'annuitant' is:
- AThe person who receives the death benefit when the contract ends
- The person on whose life the death benefit and maturity age are measured
- CThe licensed agent who sold the contract and services it on behalf of the insurer
- DThe insurer that issues the contract and holds the segregated assets
Correct answer: B) The person on whose life the death benefit and maturity age are measured
Owner and annuitant may differ. A younger annuitant extends the contract's life and death benefit timing; the beneficiary receives the death benefit when the annuitant dies.
Why the other options are wrong
- AThe beneficiary receives; the annuitant is the measuring life.
- CThe agent sells the contract and is never the annuitant.
- DThe insurer issues the contract; it is not the annuitant.
Exam tip
Annuitant = measuring life; owner may differ; beneficiary receives.
Common mistake
Confusing annuitant and beneficiary.
What this tests
CISRO competency component 2.2 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 2
- A segregated fund's 'guaranteed amount' after a partial withdrawal under proportional reduction is:
- A distinctive estate advantage of a segregated fund over a non-registered mutual fund held jointly with a child is:
- Segregated fund guarantees are most valuable relative to their cost when:
- A segregated fund's annual statement reports:
- Compared with a segregated fund, an exchange-traded fund (ETF) generally offers:
- A segregated fund's 'automatic death benefit reset' feature:
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.