LLQP Segregated Funds & Annuities · Component 4.2 · 10% of the exam
For a joint-and-survivor annuity on the first death, the survivor should:
- Notify the insurer with proof of death so payments continue at the survivor percentage in the survivor's name
- BDo nothing, since the insurer continues the payments automatically to whichever annuitant is still alive
- CFile a death claim to end the payments and receive the commuted value of the annuity as a lump sum
- DReapply for a new annuity in the survivor's name, since the joint contract ends at the first death and a fresh premium is needed
Correct answer: A) Notify the insurer with proof of death so payments continue at the survivor percentage in the survivor's name
The joint annuity continues; the insurer needs notice to adjust the payee and amount.
Why the other options are wrong
- BThe insurer needs notice of the first death to adjust the payee.
- CPayments continue to the survivor; a death claim does not end them.
- DThe existing contract continues for the survivor.
Exam tip
Joint annuity first death: notify; payments continue to the survivor.
Common mistake
Survivor assuming payments stop.
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.