LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
Implementation is complete when:
- AThe agent's commission has been paid, which confirms that the insurer has accepted the business
- BThe deposit has been mailed to the insurer, since the client's obligations are then fully discharged
- CThe application has been signed, since the contract is formed at the moment the client makes the offer and hands over the deposit
- The insurer has issued the contract, the client has reviewed it, the file is documented, and a review is set
Correct answer: D) The insurer has issued the contract, the client has reviewed it, the file is documented, and a review is set
Delivery and documentation close implementation and start the service phase.
Why the other options are wrong
- AThe agent's payment is irrelevant to whether implementation is complete.
- BIssue and delivery remain after the deposit is sent.
- CIssue and delivery follow the signed application.
Exam tip
Complete = issued, delivered, reviewed, documented, review scheduled.
Common mistake
Treating a signed application as a completed sale.
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.