LLQP Segregated Funds & Annuities · Component 4.2 · 10% of the exam
An annuitant died while travelling abroad and the beneficiary asks what the insurer will require. The agent should explain that:
- Athe claim must be filed in the country where the death occurred before Canada will consider it
- Bno proof of death is required when a death occurs outside Canada, only the claim form
- Cthe death benefit is reduced because the annuitant was outside Canada at the time of death
- proof of death acceptable to the insurer is needed, which may take longer to obtain abroad
Correct answer: D) proof of death acceptable to the insurer is needed, which may take longer to obtain abroad
The insurer needs satisfactory evidence of death, usually a death certificate and sometimes a translation or further documentation. Foreign records can take months, so the agent should prepare the family for the delay.
Why the other options are wrong
- AThe claim is made to the Canadian insurer that issued the contract.
- BProof of death is always required before a claim can be settled.
- CLocation of death does not reduce a segregated fund death benefit.
Exam tip
A death abroad still needs proof acceptable to the insurer, often with a translation.
Common mistake
Promising a family a quick settlement when the documents must come from abroad.
What this tests
CISRO competency component 4.2 — Provide customer service during the validity period of the coverage — which is weighted at 10% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 4
- A client's daughter was born last month and the client wants her added to the segregated fund designation. The agent should:
- A client wants to withdraw part of his segregated fund before maturity. The agent should explain:
- A client's segregated fund contract is approaching its maturity date. The insurer will:
- A client asks to add her adult son as a joint owner of her non-registered segregated fund contract. The agent should explain that:
- A client wants to replace the beneficiary on a contract where the current designation was made irrevocable. The agent must explain that:
- A client who has lost her job asks to pause her pre-authorized monthly contributions for six months. The agent should:
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.