LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
A 'third-party determination' on the application asks:
- ANothing that the agent needs to complete, since the insurer asks the question directly when the contract is issued
- BWho the agent's supervising manager is, so the insurer knows who reviewed the application before submission
- CWho the beneficiary's lawyer is, so the insurer can contact them when the death benefit becomes payable
- Whether anyone other than the owner will direct the account or has provided the funds, with details if so
Correct answer: D) Whether anyone other than the owner will direct the account or has provided the funds, with details if so
Third-party determination detects nominee arrangements used for laundering.
Why the other options are wrong
- AIt is a required question on the application.
- BThe agent's manager is irrelevant to third-party determination.
- CThe beneficiary's lawyer is irrelevant to third-party determination.
Exam tip
Third-party determination is mandatory; record details if yes.
Common mistake
Answering 'no' without asking the client.
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.