LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
An agent submits a transfer form to move a client's registered plan from another institution. Before telling the client the move is complete, the agent should:
- Atell the client to contact the former institution directly for any information about progress
- Bclose the client's file, since the agent's role ended when the form was submitted
- Cassume completion, since transfer forms are always processed within two business days
- confirm with the receiving insurer that the funds have arrived and been invested as instructed
Correct answer: D) confirm with the receiving insurer that the funds have arrived and been invested as instructed
Transfers can stall for missing signatures, incorrect account numbers or outstanding fees. The agent should track the transfer, confirm the funds were received and invested correctly, and keep the client informed while it is out of the market.
Why the other options are wrong
- AFollowing up is part of the service the agent has undertaken to provide.
- BThe agent's responsibility continues until the instruction has been carried out.
- CInstitutional transfers frequently take several weeks rather than days.
Exam tip
An instruction is not complete until the agent has confirmed the money landed correctly.
Common mistake
Telling a client a transfer is done before confirming it with the receiving insurer.
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.