LLQP Segregated Funds & Annuities · Component 4.1 · 10% of the exam
A client's deferred sales charge schedule has now run its course. The service opportunity this creates is that:
- Athe insurer begins refunding the charges the client paid on any earlier redemptions made
- Bthe guarantees are reset automatically to the current market value on the schedule's end date
- Cthe contract must be surrendered and repurchased in order to remove the charge permanently
- the holding can be moved or restructured without a redemption charge, so a review is timely
Correct answer: D) the holding can be moved or restructured without a redemption charge, so a review is timely
Once the schedule expires the client can change funds, change contracts or move insurers without paying a redemption charge. That makes it a natural moment to review suitability, costs and the guarantee level.
Why the other options are wrong
- ACharges already paid are not refunded when a schedule expires.
- BGuarantees reset only when the contract offers a reset and it is elected.
- CNo surrender is needed; the charge simply no longer applies to those units.
Exam tip
The end of a redemption schedule is the cheapest moment to restructure a holding.
Common mistake
Missing the review opportunity when a client's redemption schedule expires.
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.