LLQP Segregated Funds & Annuities · Component 4.1 · 10% of the exam
A client reports that her address and marital status changed and she has a new employer with a pension. The agent should:
- Update KYC, revisit the profile, review beneficiaries, and consider whether the contracts still fit
- BUpdate the address only, since marital status and employment are personal matters outside the contract
- CCancel her contracts and start again, since three material changes mean the original recommendation no longer applies in any respect
- DTake no action until the next scheduled review, since the changes will be captured at that time
Correct answer: A) Update KYC, revisit the profile, review beneficiaries, and consider whether the contracts still fit
Life events cascade through KYC, suitability and designations.
Why the other options are wrong
- BThe other changes are material to suitability.
- CCancelling contracts because of life changes is unnecessary.
- DUpdates are required promptly.
Exam tip
Life event → KYC, profile, beneficiaries, fit.
Common mistake
Treating an address change as purely administrative.
What this tests
CISRO competency component 4.1 — 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.