LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
Two clients want a non-registered segregated fund held jointly so the survivor takes the whole contract. At implementation the agent should:
- confirm how ownership and survivorship operate in the client's province before completing the form
- Brecord the contract in one name only, because joint ownership is never available on these contracts
- Cname each client as the other's beneficiary, which produces the identical legal result
- Drecord joint ownership with right of survivorship everywhere in Canada, since the rule is uniform
Correct answer: A) confirm how ownership and survivorship operate in the client's province before completing the form
Joint ownership with a right of survivorship is not available in the same way in every province, and Quebec follows different rules. The agent must confirm what the jurisdiction allows and complete the application to match the clients' intention.
Why the other options are wrong
- BJoint ownership is available in the jurisdictions that recognize it.
- CA beneficiary designation operates on death of the owner and is not the same thing.
- DThe treatment of joint ownership is not uniform across the country.
Exam tip
Joint ownership questions always turn on the province, especially in Quebec.
Common mistake
Applying common law joint ownership assumptions to a Quebec client.
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.