LLQP Segregated Funds & Annuities · Component 4.1 · 10% of the exam
A client's daughter was born last month and the client wants her added to the segregated fund designation. The agent should:
- Complete the insurer's change form, signed by the owner and any irrevocable beneficiary, and submit it
- BDecline, since a beneficiary designation is fixed at issue and can only be changed through a new contract with a fresh application
- CTake a verbal instruction and note it in the file, since the owner's wishes are what govern the designation
- DChange the will to name the new beneficiary, since the will governs how the death benefit is distributed
Correct answer: A) Complete the insurer's change form, signed by the owner and any irrevocable beneficiary, and submit it
Beneficiary changes must be in writing on the insurer's form. Irrevocable beneficiaries must consent. The curriculum lists validating contract amendments.
Why the other options are wrong
- BThe owner may change a revocable designation at any time.
- CA written form is required for a beneficiary change.
- DAgents do not change wills, and the designation governs the contract.
Exam tip
Beneficiary change: owner's signed form; irrevocable beneficiary consent.
Common mistake
Accepting a verbal beneficiary change.
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 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:
- A client is considering replacing her existing segregated fund contract with one from another insurer. Before any replacement the agent must:
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.