LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
For an RESP set up with segregated funds, implementation requires:
- AA medical questionnaire on the child, since the plan's growth and grant entitlement depend on the beneficiary's life and health
- BOnly the parent's identification, since the child's details are collected when withdrawals begin
- CNothing beyond the deposit, since RESP registration is handled by the insurer after the plan is opened
- The subscriber's and beneficiary's SINs, the relationship for family plans, grant forms, and the limits and grant rules
Correct answer: D) The subscriber's and beneficiary's SINs, the relationship for family plans, grant forms, and the limits and grant rules
Grants require the beneficiary's SIN and forms. Missing SINs delay grants.
Why the other options are wrong
- AAn RESP set-up requires no medical evidence.
- BThe beneficiary's SIN is needed to register the plan.
- CRESP set-up has specific documentation requirements.
Exam tip
RESP: SINs for subscriber and child, grant forms.
Common mistake
Opening an RESP before the child's SIN is obtained.
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.