LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
The 'trusted contact person' (TCP) collected at implementation is:
- AThe beneficiary of the contract, recorded again so the insurer can reach them at claim time
- A person the client authorizes the agent to contact over concerns about capacity or exploitation; not a POA
- CThe agent's supervisor, whom the client may contact if there are concerns about the agent's conduct
- DA co-owner of the contract, who may give instructions on the account whenever the client is travelling or otherwise unavailable
Correct answer: B) A person the client authorizes the agent to contact over concerns about capacity or exploitation; not a POA
TCP collection is an increasingly standard KYC element for vulnerable-client protection.
Why the other options are wrong
- AThe beneficiary is a different role from the trusted contact person.
- CThe agent's supervisor is not the client's trusted contact person.
- DA trusted contact person has no ownership of or authority over the account.
Exam tip
TCP: contact for capacity/exploitation concerns; no authority over the account.
Common mistake
Confusing the TCP with a power of attorney.
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.