LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
The agent's record of the implementation should be retained:
- AOnly until the contract is issued, since the insurer's file then becomes the official record of the sale
- BFor one month after issue, which allows time for the rescission period to run and any errors to surface
- For the period required by the regulator and insurer, often years after the contract ends, securely
- DUntil the client's first cheque clears, since the record's only purpose is to evidence the deposit
Correct answer: C) For the period required by the regulator and insurer, often years after the contract ends, securely
Retention periods are regulatory; records protect clients and agents in disputes.
Why the other options are wrong
- ARecord retention is required by regulators and insurers.
- BOne month is far shorter than the required retention period.
- DKeeping records only until the cheque clears is far too short.
Exam tip
Retain records per regulator/insurer requirements.
Common mistake
Discarding files when a client leaves.
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:
- Implementation is complete when:
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.