LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
For locked-in transfers (LIRA to LIRA or LIF), additional requirements include:
- AA medical examination, since locked-in funds are eventually converted to a life annuity and the insurer must assess mortality
- The receiving contract registered as locked-in under the jurisdiction, with its addendum and spousal forms
- CNothing beyond an ordinary RRSP transfer form, since locked-in status is a matter for the original pension plan
- DCashing out the locked-in plan first, since a transfer between locked-in vehicles is not permitted
Correct answer: B) The receiving contract registered as locked-in under the jurisdiction, with its addendum and spousal forms
Locked-in vehicles carry jurisdiction-specific endorsements. The wrong jurisdiction or a missing addendum invalidates the transfer.
Why the other options are wrong
- ALocked-in transfers require no medical evidence.
- CLocked-in rules require the jurisdiction's documentation.
- DCashing out is prohibited.
Exam tip
Locked-in: jurisdiction addendum, spousal forms.
Common mistake
Transferring Ontario locked-in funds into a federal LIRA form.
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.