LLQP Segregated Funds & Annuities · Component 4.1 · 10% of the exam
A client wants to add a deposit to an existing segregated fund contract at age 80. The agent should check:
- AOnly the fund selection, since an additional deposit simply buys more units under the existing contract
- BNothing in particular, since the contract was issued years ago and its terms apply to every deposit
- CThe client's will, since a deposit at 80 is likely intended for the estate rather than for her own use and should match the will
- Whether deposits are permitted at her age, whether the guarantee is reduced, and whether a new term starts
Correct answer: D) Whether deposits are permitted at her age, whether the guarantee is reduced, and whether a new term starts
Later deposits often have different guarantee terms. Validation of the amendment includes explaining this.
Why the other options are wrong
- AGuarantee terms on the new deposit matter.
- BAge rules apply to additional deposits and their guarantees.
- CThe will is irrelevant to the deposit.
Exam tip
Additional deposits: age limits, guarantee level, separate maturity.
Common mistake
Assuming a new deposit carries the original guarantee terms.
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.