LLQP Segregated Funds & Annuities · Component 3.1 · 25% of the exam
A suitable segregated fund recommendation must reconcile:
- The client's profile and needs with fund mix, guarantee, maturity, fees, plan type and beneficiary structure
- BThe insurer's current promotion with the client's budget, since promotional pricing lowers the client's cost and improves the outcome
- CThe client's stated product preference with the agent's licensing, since the client is entitled to whatever the agent may sell
- DThe agent's production targets with the client's available cash, since a sale that fits both is the best outcome for everyone
Correct answer: A) The client's profile and needs with fund mix, guarantee, maturity, fees, plan type and beneficiary structure
The recommendation component of the curriculum expects every design choice to trace back to the needs analysis.
Why the other options are wrong
- BPromotions are not suitability criteria.
- CA client's preference does not make a product suitable; the profile does.
- DSales targets are irrelevant to suitability.
Exam tip
Every design choice → a documented need.
Common mistake
Choosing 100/100 for every client 'to be safe' without a matching need.
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.