LLQP Segregated Funds & Annuities · Component 3.1 · 25% of the exam
A client wants to make a large deposit at age 82. The recommendation must check:
- Age limits for deposits and guarantees, and whether a GIA or annuity fits better
- BNothing in particular, since segregated funds have no medical underwriting and age is not a factor
- COnly the fund selection, since the guarantees are identical for every annuitant regardless of age
- DThe RESP rules, since a deposit at 82 is most likely intended for grandchildren's education
Correct answer: A) Age limits for deposits and guarantees, and whether a GIA or annuity fits better
Late-age deposits face restrictions. The recommendation must reflect what the contract actually provides.
Why the other options are wrong
- BAge restrictions are material at 82.
- CGuarantee availability matters as much as fund choice.
- DAn RESP has nothing to do with an 82-year-old's own deposit.
Exam tip
Late-age deposits: reduced or unavailable guarantees.
Common mistake
Promising the same guarantee an 82-year-old cannot receive.
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.