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SEGREGATED FUNDS AND ANNUITIES EXAM VERSION 1
NEWEST 2025 EXAM 2025/2026 NEWEST ACTUAL EXAM
WITH COMPLETE QUESTIONS AND VERIFIED ANSWERS
|ALREADY GRADED A+|
An investor seeking income, in a relatively straightforward
product, is a likely candidate for a payout _______. Those looking
for a very conservative investment without the limitations of
segregated funds, such as the 10-year term to maturity, sale
charge and MER, will be potential candidates for an accumulation
______. - ANSWER-Annuity
A withdrawal may be made from an accumulation annuity. When
this occurs, a ______may be charged. The ______is a penalty
calculated by the insurer that has issued the contract. The agent
must inform the contract owner that a withdrawal may be reduced
by the ______. - ANSWER-Market value adjustment
If a RRSP at maturity is being converted to an______,
______payments must begin in the year following. They cannot
be deferred to a later date. - ANSWER-Annuity
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When an annuity is purchased with taxable ______, such as by
transfer from a registered retirement savings plan, the entire
payment received by the annuitant is taxed as income in the year
it is received. - ANSWER-Registered funds
A ______-income annuity in which each payment is equal is best
suited to an investor without the risk tolerance needed for a
variable income. An investor who wants or needs income security
is well served by a ______rate of payment. - ANSWER-Fixed
An ______annuity payment is comprised of more interest than
investment capital in its early years. Consequently,
______annuities often have a large amount of tax owing in the
early years of payment compared to prescribed annuities. -
ANSWER-Accrual
A higher risk tolerance may indicate a ______. The
______rewards the annuitant by making higher payments but
puts the beneficiary at risk since he may receive nothing if death
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of the annuitant occurs after the guarantee period ends. -
ANSWER-Shorter guarantee period
If the beneficiary receives the proceeds as a lump sum, she will
pay tax on any portion of the sum that exceeds the ______of the
contract. - ANSWER-Adjusted cost base
Contracts are legal documents that bind their parties to specified
terms and conditions. Many forms of contracts exist; the contract
between an insurer and an investor for a segregated fund is an
______. - ANSWER-Individual variable insurance contract
Income is reported on the annual income tax return, which must
be filed personally and separately for incorporated businesses.
After the income tax return is filed, the ______is produced by the
CRA. - ANSWER-Notice of assessment
To open a ______account, the contract owner needs to provide
her SIN for tax purposes. A ______contract requires the owner to
be the same person as the annuitant. Ownership of the contract
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cannot be transferred and the contract cannot be used as
collateral. - ANSWER-Registered
The taxpayer generally pays tax at his ______, which combines
federal and provincial tax rates. The ______is a key consideration
when choosing investments and planning on using investment
income due to its impact on the net amount available for
retirement. - ANSWER-Marginal tax rate
A ______account, that is, an account not registered for tax
purposes, may specify an annuitant who is not the contract owner.
The owner may be an individual, a group of individuals or a
corporation. The contract may be purchased until the date on
which the annuitant turns 90. - ANSWER-Non registered
Contributions made to a ______by an individual as well as
calculated pension adjustments reduce the RRSP deduction limit
and the sums that can be contributed to it. - ANSWER-Registered
pension plan
SEGREGATED FUNDS AND ANNUITIES EXAM VERSION 1
NEWEST 2025 EXAM 2025/2026 NEWEST ACTUAL EXAM
WITH COMPLETE QUESTIONS AND VERIFIED ANSWERS
|ALREADY GRADED A+|
An investor seeking income, in a relatively straightforward
product, is a likely candidate for a payout _______. Those looking
for a very conservative investment without the limitations of
segregated funds, such as the 10-year term to maturity, sale
charge and MER, will be potential candidates for an accumulation
______. - ANSWER-Annuity
A withdrawal may be made from an accumulation annuity. When
this occurs, a ______may be charged. The ______is a penalty
calculated by the insurer that has issued the contract. The agent
must inform the contract owner that a withdrawal may be reduced
by the ______. - ANSWER-Market value adjustment
If a RRSP at maturity is being converted to an______,
______payments must begin in the year following. They cannot
be deferred to a later date. - ANSWER-Annuity
, Page |2
When an annuity is purchased with taxable ______, such as by
transfer from a registered retirement savings plan, the entire
payment received by the annuitant is taxed as income in the year
it is received. - ANSWER-Registered funds
A ______-income annuity in which each payment is equal is best
suited to an investor without the risk tolerance needed for a
variable income. An investor who wants or needs income security
is well served by a ______rate of payment. - ANSWER-Fixed
An ______annuity payment is comprised of more interest than
investment capital in its early years. Consequently,
______annuities often have a large amount of tax owing in the
early years of payment compared to prescribed annuities. -
ANSWER-Accrual
A higher risk tolerance may indicate a ______. The
______rewards the annuitant by making higher payments but
puts the beneficiary at risk since he may receive nothing if death
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of the annuitant occurs after the guarantee period ends. -
ANSWER-Shorter guarantee period
If the beneficiary receives the proceeds as a lump sum, she will
pay tax on any portion of the sum that exceeds the ______of the
contract. - ANSWER-Adjusted cost base
Contracts are legal documents that bind their parties to specified
terms and conditions. Many forms of contracts exist; the contract
between an insurer and an investor for a segregated fund is an
______. - ANSWER-Individual variable insurance contract
Income is reported on the annual income tax return, which must
be filed personally and separately for incorporated businesses.
After the income tax return is filed, the ______is produced by the
CRA. - ANSWER-Notice of assessment
To open a ______account, the contract owner needs to provide
her SIN for tax purposes. A ______contract requires the owner to
be the same person as the annuitant. Ownership of the contract
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cannot be transferred and the contract cannot be used as
collateral. - ANSWER-Registered
The taxpayer generally pays tax at his ______, which combines
federal and provincial tax rates. The ______is a key consideration
when choosing investments and planning on using investment
income due to its impact on the net amount available for
retirement. - ANSWER-Marginal tax rate
A ______account, that is, an account not registered for tax
purposes, may specify an annuitant who is not the contract owner.
The owner may be an individual, a group of individuals or a
corporation. The contract may be purchased until the date on
which the annuitant turns 90. - ANSWER-Non registered
Contributions made to a ______by an individual as well as
calculated pension adjustments reduce the RRSP deduction limit
and the sums that can be contributed to it. - ANSWER-Registered
pension plan
