LLQP Segregated Funds & Annuities · Component 3.1 · 25% of the exam
A recommendation should set a 'review schedule' because:
- AIt is not needed once a suitable recommendation has been implemented, since the contract runs on its own terms
- Circumstances, markets, guarantees and tax rules change, and reviews capture opportunities such as resets
- CRegulators discourage reviews, since each review creates an opportunity for the agent to generate a new sale
- DProducts never change after issue, so a review would only revisit decisions that have already been made
Correct answer: B) Circumstances, markets, guarantees and tax rules change, and reviews capture opportunities such as resets
Suitability is ongoing. Review timing is part of the recommendation.
Why the other options are wrong
- AReviews are essential to keep the recommendation suitable.
- CRegulators expect reviews.
- DProducts and rules change.
Exam tip
Schedule reviews: life events, resets, maturity, tax changes.
Common mistake
Selling and never reviewing.
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.