LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
The segregated fund application requires:
- AA credit check on the owner, since the insurer is extending a guarantee that depends on the client's creditworthiness
- Owner, annuitant, beneficiary, fund and guarantee choices, plan type, sales charge, source of funds, KYC, signatures and ID
- COnly the owner's signature, since the insurer collects the remaining details after the deposit has been received
- DA medical questionnaire and paramedical examination, since the death benefit guarantee is underwritten in the same way as life insurance
Correct answer: B) Owner, annuitant, beneficiary, fund and guarantee choices, plan type, sales charge, source of funds, KYC, signatures and ID
The application establishes the contract's parties and terms. Accuracy on roles (owner, annuitant, beneficiary) is critical.
Why the other options are wrong
- ACredit checks are not part of a segregated fund application.
- CMuch more than a signature is required.
- DNo medical underwriting applies.
Exam tip
Application: parties, funds, guarantee, plan type, charges, source of funds, KYC, ID.
Common mistake
Leaving the beneficiary section blank (defaults to estate).
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.