LLQP Segregated Funds & Annuities · Component 2.4 · 30% of the exam
An agent servicing a group retirement plan should help members by:
- ASelling them individual products only, since the group plan is administered by the provider rather than the agent
- Explaining options, risk and fees, helping with suitability, encouraging contributions to the match, and reviewing
- CLeaving them to the plan provider's call centre, since servicing individual members is outside the agent's role once enrolment is done
- DChoosing investments for each member based on age, since most members lack the knowledge to decide
Correct answer: B) Explaining options, risk and fees, helping with suitability, encouraging contributions to the match, and reviewing
Member education and suitability support are core agent contributions to group plans under CAP Guidelines.
Why the other options are wrong
- AThe group plan is usually the best first vehicle.
- COngoing service to plan members is expected.
- DMembers make their own choices; the agent educates rather than decides.
Exam tip
Group service: educate, assess suitability, capture the match, review.
Common mistake
Ignoring members after enrolment.
What this tests
CISRO competency component 2.4 — 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:
- A segregated fund's annual statement reports:
- Compared with a segregated fund, an exchange-traded fund (ETF) generally offers:
- A segregated fund's 'automatic death benefit reset' feature:
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.