LLQP Segregated Funds & Annuities · Component 4.1 · 10% of the exam
A client's guaranteed interest option within the contract is maturing. The service action is to:
- ATake no action, since the insurer handles the maturity of a guaranteed interest option automatically
- BWithdraw the maturing amount to the client's bank account, since matured funds should not sit inside the contract
- CLet it roll over automatically without contacting the client, since the default renewal protects the money
- Contact the client before maturity to elect renewal terms, a switch to funds, or withdrawal, noting current rates
Correct answer: D) Contact the client before maturity to elect renewal terms, a switch to funds, or withdrawal, noting current rates
GIA maturities are renewal decisions similar to GIC maturities.
Why the other options are wrong
- AContacting the client before a GIA matures is expected service.
- BClient instruction is required before any withdrawal.
- CClient input is needed on renewal terms.
Exam tip
GIA maturity: contact, elect, document.
Common mistake
Letting a GIA auto-renew at an unfavourable rate.
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.