LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
A prospective client speaks limited English and brings a friend to interpret. At implementation the agent should:
- Aproceed quickly, since the friend's presence removes any concern about understanding
- Bhave the friend sign the application, since the friend understood the explanation given
- take steps to confirm the client personally understands, and document how that was achieved
- Ddecline the business, because contracts cannot be sold where an interpreter is involved
Correct answer: C) take steps to confirm the client personally understands, and document how that was achieved
The duty to ensure understanding is owed to the client. The agent should use materials in a language the client reads where available, ask open questions through the interpreter, and record how understanding was confirmed and who interpreted.
Why the other options are wrong
- AAn interpreter's presence does not by itself prove the client understood.
- BOnly the applicant may sign; the interpreter has no authority whatever.
- DBusiness may proceed where the agent takes proper steps to ensure understanding.
Exam tip
Confirm understanding with the client, then document how it was confirmed.
Common mistake
Assuming an interpreter's nod is evidence that the client understood the product.
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.