LLQP Segregated Funds & Annuities · Component 4.2 · 10% of the exam
At the maturity date of a segregated fund contract, the 'claim' process involves:
- AA lawsuit against the insurer to enforce the guarantee, since insurers do not pay maturity top-ups voluntarily without a demand
- The insurer applying the guarantee and the client electing cash, renewal or annuitization by the deadline
- CNothing, since the contract continues unchanged and the guarantee simply rolls forward to a new term
- DProof of death and a claim form, since maturity is processed through the same channel as a death claim
Correct answer: B) The insurer applying the guarantee and the client electing cash, renewal or annuitization by the deadline
Maturity is a benefit event as well as a decision point. The top-up is automatic; the election is the client's.
Why the other options are wrong
- AMaturity is a contractual event, not a dispute requiring a lawsuit.
- CThe client must make an election at maturity.
- DMaturity is not death; no proof of death is required.
Exam tip
Maturity: automatic top-up, client election.
Common mistake
Missing the election deadline.
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.