LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
A client wants to designate a beneficiary irrevocably at implementation. The agent must:
- ADecline, since an irrevocable designation removes rights the client may later regret giving up once circumstances change
- Explain the consequences, confirm the client's intent, and complete the insurer's form
- CName the estate instead, since an irrevocable designation is only available for life insurance policies
- DComplete the form without discussion, since the client has already decided and the agent's role is to process
Correct answer: B) Explain the consequences, confirm the client's intent, and complete the insurer's form
Irrevocable designations are powerful; informed consent and the proper form are required.
Why the other options are wrong
- AIt is the client's right to designate irrevocably.
- CNaming the estate contradicts the client's wish.
- DThe consequences must be explained before the form is signed.
Exam tip
Irrevocable: explain, confirm, use the form.
Common mistake
Ticking 'irrevocable' by mistake.
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.