LLQP Segregated Funds & Annuities · Component 4.1 · 10% of the exam
A client's RRIF minimum withdrawal changes each year because:
- The minimum is a prescribed percentage rising with age, applied to the value each January 1
- BThe insurer sets the minimum each year according to the returns the fund earned in the previous year
- CIt depends on the market alone, since the minimum is a fixed dollar amount adjusted for fund performance
- DIt is fixed at set-up and changes only when the client elects a different payment amount
Correct answer: A) The minimum is a prescribed percentage rising with age, applied to the value each January 1
Annual RRIF servicing includes reviewing the minimum and the client's income needs.
Why the other options are wrong
- BThe minimum percentage is prescribed by tax law, not chosen by the insurer.
- CValue and age both matter, not the market alone.
- DThe minimum changes every year with age and value.
Exam tip
RRIF minimum = age factor × January 1 value; review yearly.
Common mistake
Failing to adjust the payment when the minimum rises.
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.