LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
An agent completing an application remotely cannot examine the client's identity document in person. An acceptable alternative is to:
- Askip identification entirely, since verification is only required for in-person applications
- use the dual process method, verifying information from two reliable and independent sources
- Crely on the client's own written statement confirming that the information given is true
- Daccept a photograph of the document sent by text message without any further verification
Correct answer: B) use the dual process method, verifying information from two reliable and independent sources
Where a document cannot be examined, the rules allow identity to be confirmed using two independent and reliable sources, such as records confirming name with address and name with a financial account. The method used must be recorded.
Why the other options are wrong
- AIdentification is required regardless of how the application was taken.
- CA client's own statement is not an independent source of verification.
- DAn unverified image does not meet the standard for document examination.
Exam tip
No document to examine equals the dual process method, with the sources recorded.
Common mistake
Accepting a photographed document as equivalent to examining the original.
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
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