LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
For a segregated fund sold within a group plan, implementation requirements differ in that:
- AThere is no application at all, since the employer's master contract covers every member automatically
- BMembers need medical evidence, since the death benefit guarantee is underwritten on each member's life before enrolment is accepted
- CAML rules do not apply, since the employer has already identified each member for payroll purposes
- The employer signs the master contract and members complete enrolment forms, with CAP disclosure replacing some delivery
Correct answer: D) The employer signs the master contract and members complete enrolment forms, with CAP disclosure replacing some delivery
Group implementation is sponsor-driven with member enrolment. Disclosure obligations still exist.
Why the other options are wrong
- AEnrolment forms exist for each member.
- BGroup plan members need no medical evidence to enrol.
- CAML applies, with some group exemptions.
Exam tip
Group: master contract + member enrolment + CAP disclosure.
Common mistake
Members leaving beneficiary designations blank on enrolment.
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.