LLQP Segregated Funds & Annuities · Component 2.2 · 30% of the exam
A segregated fund's annual statement reports:
- AOnly the fees charged during the year, since values and transactions are available on request
- Market value, units and values by fund, transactions, guaranteed amounts and maturity date, fees, and tax data
- CNothing in particular, since insurers are not required to issue statements for insurance contracts other than at maturity
- DOnly the guaranteed amount, since market value is irrelevant until the maturity or death date
Correct answer: B) Market value, units and values by fund, transactions, guaranteed amounts and maturity date, fees, and tax data
Statements are the client's window on both market value and guarantees; the agent should review them with the client.
Why the other options are wrong
- AThe statement reports far more than fees.
- CStatements are required.
- DMarket value and transactions are reported alongside the guarantee.
Exam tip
Statement: market value, guarantees, maturity date, fees, tax data.
Common mistake
Never reviewing statements with the client.
What this tests
CISRO competency component 2.2 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 2
- A segregated fund's 'guaranteed amount' after a partial withdrawal under proportional reduction is:
- A distinctive estate advantage of a segregated fund over a non-registered mutual fund held jointly with a child is:
- Segregated fund guarantees are most valuable relative to their cost when:
- Compared with a segregated fund, an exchange-traded fund (ETF) generally offers:
- A segregated fund's 'automatic death benefit reset' feature:
- An 'excess withdrawal' under a GMWB contract:
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.