LLQP Segregated Funds & Annuities · Component 3.1 · 25% of the exam
A client wants a segregated fund for its probate bypass but has named the estate on all her registered plans. The recommendation should include:
- ANaming the estate on the segregated fund too, so all of her assets are handled consistently under the will
- Reviewing and updating the registered plan designations so the whole plan achieves the probate objective
- CCancelling the registered plans and moving the money into the segregated fund, so everything bypasses probate
- DNothing about the registered plans, since the recommendation concerns only the product being purchased
Correct answer: B) Reviewing and updating the registered plan designations so the whole plan achieves the probate objective
Holistic recommendations fix designations across all contracts, not just the new one.
Why the other options are wrong
- ANaming the estate on the seg fund would defeat the probate objective.
- CCancelling the registered plans is unnecessary; updating designations suffices.
- DThe objective applies to all of her assets.
Exam tip
Probate objective → review designations on every plan.
Common mistake
Fixing only the product being sold.
What this tests
CISRO competency component 3.1 — 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.