LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
A client without government-issued photo ID can be identified for AML purposes by:
- AThe agent's personal confirmation, since an agent who knows the client can vouch for their identity
- BA business card and a utility bill, since two documents with the client's name are sufficient
- Alternative permitted methods: a credit file check, the dual-process method, or reliance on another entity
- DNo means at all, so the client cannot open a contract until government-issued photo identification has been obtained and copied
Correct answer: C) Alternative permitted methods: a credit file check, the dual-process method, or reliance on another entity
AML rules provide several identification methods. Agents must use one of them.
Why the other options are wrong
- AAn agent's word is not a permitted method.
- BA business card is not an acceptable identification document.
- DAlternative identification methods exist under the AML regulations.
Exam tip
ID methods: photo ID, credit file, dual process, reliance.
Common mistake
Skipping identification for a long-time acquaintance.
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.