LLQP Segregated Funds & Annuities · Component 2.1 · 30% of the exam
The 'information folder' for a segregated fund is:
- AThe periodic statement showing the client's units, values and transactions for the period
- BThe insurer's annual report to shareholders, which the client may request from the head office
- The required disclosure document on funds, guarantees, fees and risks, delivered at or before application
- DOptional marketing material that the agent may leave with the client after the sale is complete, if the client asks for it
Correct answer: C) The required disclosure document on funds, guarantees, fees and risks, delivered at or before application
Delivery of the information folder and fund facts is a compliance requirement and the basis of informed consent.
Why the other options are wrong
- AStatements are periodic reports, not the pre-sale disclosure.
- BThe insurer's annual report is a different document.
- DDelivery is a regulatory requirement, not optional marketing.
Exam tip
Information folder + fund facts: deliver before/at application.
Common mistake
Taking an application without delivering the information folder.
What this tests
CISRO competency component 2.1 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 2
- A segregated fund's 'guaranteed amount' after a partial withdrawal under proportional reduction is:
- A distinctive estate advantage of a segregated fund over a non-registered mutual fund held jointly with a child is:
- Segregated fund guarantees are most valuable relative to their cost when:
- A segregated fund's annual statement reports:
- Compared with a segregated fund, an exchange-traded fund (ETF) generally offers:
- A segregated fund's 'automatic death benefit reset' feature:
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.