LLQP Segregated Funds & Annuities · Component 3.2 · 25% of the exam
When the insurer requests additional information after the application (for example, source of wealth for a large deposit), the agent should:
- ALeave the request unanswered, since the insurer already has everything it needs to issue the contract
- BCancel the application and resubmit it later, since a request for more information means the insurer has doubts
- Obtain the information from the client promptly and accurately, explaining why the insurer requires it
- DProvide a reasonable answer based on what the agent knows, so the deposit is not delayed
Correct answer: C) Obtain the information from the client promptly and accurately, explaining why the insurer requires it
Insurers have their own compliance duties. The agent facilitates accurate responses.
Why the other options are wrong
- AThe deposit may be held until the information is provided.
- BCancelling the application is unnecessary; providing the information resolves it.
- DInventing an answer to the insurer's request is fraud.
Exam tip
Respond to insurer follow-ups accurately and promptly.
Common mistake
Guessing at the client's source of wealth.
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:
- 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:
- Implementation is complete when:
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.