LLQP Segregated Funds & Annuities · Component 4.1 · 10% of the exam
A client's marriage breaks down. Service actions include:
- ACancelling all of the client's contracts, so that the former spouse cannot receive anything from them
- BNothing until the divorce is final, since the agent cannot act on a separation that may be reversed
- CNaming the children as beneficiaries immediately, since that is what the client will want once things settle
- Reviewing designations, understanding any court order or agreement, and updating KYC
Correct answer: D) Reviewing designations, understanding any court order or agreement, and updating KYC
Divorce is a major service trigger. Designations must be actively updated; family law orders may govern registered and locked-in funds.
Why the other options are wrong
- ACancelling all contracts after a marriage breakdown is unnecessary.
- BDesignations and orders matter as soon as the separation occurs.
- CChanges require the owner's instruction.
Exam tip
Divorce: review designations, court orders, KYC.
Common mistake
Assuming divorce automatically removes a spouse beneficiary.
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.