LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
A client presents a driver's licence that expired last year as identification. The agent should:
- Aaccept it and note the expiry, since identification rules apply only to cash transactions
- Baccept it, because an expired document still proves the client's name and date of birth
- ask for a valid unexpired document or use another permitted verification method
- Daccept it if the client signs a declaration confirming that the details remain accurate
Correct answer: C) ask for a valid unexpired document or use another permitted verification method
Identity verification requires a document that is authentic, valid and current. An expired licence does not qualify, so the agent must obtain another acceptable document or verify identity through a permitted alternative method.
Why the other options are wrong
- AIdentification requirements apply to the relationship, not only to cash.
- BAn expired document fails the requirement that identification be current.
- DA client declaration cannot cure a document that does not meet the standard.
Exam tip
Identification documents must be authentic, valid and current, with no exceptions.
Common mistake
Accepting an expired document because the details appear unchanged.
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.