LLQP Segregated Funds & Annuities · Component 4.1 · 10% of the exam
A client who bought a segregated fund contract in Ontario has now moved permanently to Quebec. The agent should:
- Areissue the contract in Quebec, which requires a full new application and a new deposit
- Bdo nothing, because a change of province has no effect on any aspect of the contract
- review the beneficiary designation, since Quebec rules on designations differ in important ways
- Dtreat the contract as void, since it was issued under the law of a different province
Correct answer: C) review the beneficiary designation, since Quebec rules on designations differ in important ways
Quebec treats designations differently, particularly the presumption that a spouse designation is irrevocable unless stated otherwise. A review on relocation ensures the designation still reflects what the client actually intends.
Why the other options are wrong
- AA move does not require a new contract or a new deposit.
- BDesignation rules and family law differ enough that a review is warranted.
- DA validly issued contract is not voided by the holder moving province.
Exam tip
A move to or from Quebec should always trigger a beneficiary designation review.
Common mistake
Assuming designation rules are identical across every province.
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.