LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
Before collecting financial and health information on an application, the agent must:
- Arely on implied consent, since completing an application shows the client agrees to everything
- obtain the client's consent to collect, use and disclose the personal information involved
- Csend the information to the insurer first and obtain consent once the contract is issued
- Dobtain consent from the client's spouse as well as from the client personally in every case
Correct answer: B) obtain the client's consent to collect, use and disclose the personal information involved
Privacy legislation requires informed consent before personal information is collected and shared. The client should understand what is collected, why it is needed, who will see it and how long it is retained, and the consent is recorded on the application.
Why the other options are wrong
- AConsent must be informed and is documented rather than merely assumed.
- CConsent must precede the collection and disclosure, not follow it.
- DA spouse's consent is needed only for that spouse's own information.
Exam tip
Informed consent comes before collection, not after the contract is issued.
Common mistake
Treating the signature on an application as consent that was never explained.
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.