LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
The name on the client's identification differs from the name written on the application. The agent should:
- Aignore the difference, since insurers routinely accept variations in how names are spelled
- Bsubmit the application as written and let the insurer resolve any difference in its records
- Cchange the identification record to match the application so that the file is consistent
- resolve the difference, record the explanation and any supporting document, then proceed
Correct answer: D) resolve the difference, record the explanation and any supporting document, then proceed
A mismatch may reflect a marriage, a legal change of name or an error, or it may be a warning sign. The agent must establish the reason, keep any supporting document and make sure the contract is issued in the correct legal name.
Why the other options are wrong
- AAn unexplained name difference is a matter the agent must resolve.
- BLeaving the difference unexplained risks an incorrectly issued contract.
- CAltering a record of identification to fit the form would falsify the file.
Exam tip
Any mismatch between identification and application must be explained and documented.
Common mistake
Submitting an application without reconciling the name on the identification.
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.