LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
The contract and confirmation notice issued by the insurer should be reviewed with the client to confirm:
- AOnly the insurer's address and contact details, so the client knows where to send future correspondence and premium payments
- BThe agent's commission on the deposit, so the client can see how much of the money went to the agent
- CNothing in particular, since the insurer's issue process checks every field against the application
- Funds, allocations, guarantee, maturity, plan type, owner, annuitant and beneficiary match the application
Correct answer: D) Funds, allocations, guarantee, maturity, plan type, owner, annuitant and beneficiary match the application
Issue errors (wrong beneficiary, wrong fund) are common and easiest to fix at delivery.
Why the other options are wrong
- AThe insurer's address is trivial compared with the contract terms.
- BCommission does not appear on the contract and is not a delivery check.
- CVerification by the agent and client is essential.
Exam tip
At delivery, check every field against the application.
Common mistake
Discovering a wrong beneficiary years later.
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.