LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
At delivery, the agent should confirm the client understands the segregated fund 'maturity date' by:
- Stating the exact date, what happens at maturity, and that resets may change it, and recording this
- BDescribing it as a long way off, since the exact date will be shown on every statement the client receives
- CLeaving it for the statement, since the maturity date is the insurer's responsibility to communicate
- DEstimating it from the client's retirement plans, since the contract can be adjusted later if needed
Correct answer: A) Stating the exact date, what happens at maturity, and that resets may change it, and recording this
Maturity date understanding is central to the guarantee's value.
Why the other options are wrong
- BSaying the date is a long way off is too vague to be useful.
- CThe maturity date must be disclosed to the client at delivery.
- DThe maturity date must be stated precisely, not guessed.
Exam tip
State the maturity date and the options at maturity.
Common mistake
Leaving the client unaware of the maturity date.
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.