LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
The suitability documentation required at implementation includes:
- AOnly the fund facts, since the client's acknowledgment of the disclosure document proves suitability
- A signed KYC profile, the needs analysis and recommendation record, disclosure acknowledgments, and client departures
- CNothing beyond the application, since the insurer's acceptance of the contract confirms that the recommendation was suitable
- DOnly the application, since it records the funds chosen and the client's signature agreeing to them
Correct answer: B) A signed KYC profile, the needs analysis and recommendation record, disclosure acknowledgments, and client departures
The file substantiates suitability and compliance; regulators and insurers can audit it.
Why the other options are wrong
- AFund facts are disclosure, not suitability documentation.
- CSuitability documentation is required and retained.
- DThe application alone lacks the reasoning.
Exam tip
File: KYC, needs, recommendation, disclosures, departures.
Common mistake
Missing the signed KYC in the file.
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.