LLQP Segregated Funds & Annuities · Component 3.1 · 25% of the exam
The final check before implementing a segregated fund or annuity recommendation is to confirm that:
- ANothing further, since the signed application is the client's confirmation that everything has been understood and accepted
- BThe fund had a good year, since a strong recent return validates the choice before the money is committed
- CThe agent's quota has been met, since a recommendation made under sales pressure should be reconsidered
- The recommendation matches the profile, features were explained, disclosure was given, and the client agrees
Correct answer: D) The recommendation matches the profile, features were explained, disclosure was given, and the client agrees
This closes the recommendation stage and opens implementation.
Why the other options are wrong
- AThe check is essential before implementation.
- BRecent performance is not a suitability criterion.
- CThe agent's sales quota has no place in a suitability check.
Exam tip
Final check: consistency, disclosure, understanding, agreement, documentation.
Common mistake
Proceeding to the application without confirming understanding.
What this tests
CISRO competency component 3.1 — 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.