LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
For a RRIF set-up, the implementation must record:
- AThe beneficiary's age, since the minimum withdrawal can be based on the age of whoever will eventually inherit the plan
- BA medical questionnaire, since the RRIF will pay for the rest of the annuitant's life
- Payment frequency and amount, the age election, successor or beneficiary, withholding instructions, and source transfer
- DOnly the annual amount, since the insurer sets the frequency and designations from its own defaults
Correct answer: C) Payment frequency and amount, the age election, successor or beneficiary, withholding instructions, and source transfer
RRIF elections made at setup — especially the age election — are permanent. Withholding applies only above the minimum.
Why the other options are wrong
- AThe spouse's age matters for the election, not the beneficiary's.
- BA RRIF set-up requires no medical evidence.
- DElections and designations must be recorded.
Exam tip
RRIF setup: payment, age election, successor annuitant, withholding.
Common mistake
Missing the younger-spouse election.
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.