LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
A client's spouse offers to sign the application on the client's behalf because the client is travelling. The agent should:
- Asign it personally as the agent, which is faster and produces the same legal result
- Ballow it, provided the spouse writes the client's name exactly as it appears on the file
- wait for the client to sign, or accept a signature made under a valid power of attorney
- Daccept a verbal confirmation by telephone and note in the file that consent was given
Correct answer: C) wait for the client to sign, or accept a signature made under a valid power of attorney
Only the applicant or a properly authorized attorney may sign. A spouse has no inherent authority, and an agent who signs for a client commits forgery regardless of the client's supposed agreement.
Why the other options are wrong
- AAn agent signing for a client is among the most serious breaches possible.
- BWriting another person's name without authority is forgery, however it is described.
- DA telephone confirmation does not replace a required signature on an application.
Exam tip
No one signs for the client except the client or a valid attorney under a power.
Common mistake
Treating a spouse as automatically authorized to sign financial documents.
What this tests
CISRO competency component 3.2 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 3
- A client's spouse must sign for:
- When the insurer requests additional information after the application (for example, source of wealth for a large deposit), the agent should:
- The implementation of a recommendation involving a switch from one seg fund to another within a contract requires:
- A client wishes to designate a charity as beneficiary of a segregated fund. Implementation should:
- For a deferred annuity implemented for a client, the agent should confirm:
- The agent's record of the implementation should be retained:
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.