LLQP Segregated Funds & Annuities · Component 4.1 · 10% of the exam
A client's annual review should cover, for segregated funds and annuities:
- Changes in profile, performance and risk, rebalancing, resets, maturity dates, beneficiaries and RRIF planning
- BNothing formal, since a segregated fund contract runs on its own terms until the maturity date arrives and the insurer sends notice
- COnly the fees charged, since the client's main concern after purchase is the cost of the contract
- DOnly the fund's performance against its benchmark, since that is what determines whether the choice was right
Correct answer: A) Changes in profile, performance and risk, rebalancing, resets, maturity dates, beneficiaries and RRIF planning
Reviews keep the contract aligned with the client and capture contract features.
Why the other options are wrong
- BReviews are essential to keep the contract suitable.
- CFees are one element of a review.
- DPerformance is one element of a review.
Exam tip
Review: profile, mix, resets, maturity, beneficiaries, RRIF, tax.
Common mistake
Reviewing returns and nothing else.
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.