LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
Fund facts documents must be delivered:
- ANever, since the information folder already describes every fund available under the contract
- BAnnually with the statement, so the client sees the current fund facts for each fund held
- For each fund selected at application, and for new funds on a later switch, with delivery acknowledged
- DOnly when the client asks for them, since most clients rely on the agent's explanation instead of reading the documents themselves
Correct answer: C) For each fund selected at application, and for new funds on a later switch, with delivery acknowledged
Fund facts are the fund-level disclosure counterpart to the information folder. Switches into new funds trigger delivery.
Why the other options are wrong
- AFund facts delivery is required by regulators.
- BFund facts are delivered at fund selection, not annually.
- DFund facts delivery is mandatory, not on request only.
Exam tip
Fund facts for every selected fund, including later switches.
Common mistake
Forgetting fund facts on a switch.
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.