11/3/25, 3:48 PM Segragated Funds questions and answers Flashcards | Quizlet
Segragated Funds questions and answers
Save
Terms in this set (43)
Information folder:
What document must a
client be given prior to
Contains all of the essential information for an
completing an application
informed purchasing decision. It must be given to the
for an Individual Variable
client before he completes an application and makes
Insurance Contract (IVIC)?
the decision to purchase an IVIC
If a client decides to invest $60,833
$50,000 today in an
investment that pays 4%
annually, how much would
this investment be worth
at the end of the fifth
year?
A segregated fund is a pool of funds held by an
insurance company
What is a segregated
- these funds are separate from the other assets of the
fund?
insurance company
- individual Variable Insurance contract
https://quizlet.com/1102411831/segragated-funds-questions-and-answers-flash-cards/?new 1/23
,11/3/25, 3:48 PM Segragated Funds questions and answers Flashcards | Quizlet
1) Maturity and Death Benefit guarantees
2) Resets features in some contracts
3) Possible creditor Protection
What are the six
advantages of Segregated
4) Right to designate a beneficiary and bypass
Funds?
probate
5) Tax benefitwhen capital losses are incurred
6) Investor protection by assuris
From the following list, Lowest to highest:
determine the risk level of 1) Money Market Fund
the funds, from the lowest 2) Bond Funds
to highest risk: 3) Dividend Funds
1) Equity funds 4) Equity Funds
2) Bond funds
3) Dividend funds
4) Money market funds
Yes.
An investor may cancel or rescind the segregated
Jennice receives her final
fund contract in writing within the specific time
segregated fund contract
limitation set by the insurer providing the contract.
from her agent, but
Two days is the usual length of time permitted. The
decides to cancel the
investor receives the lesser of the amount of premium
contract a day later. Can
paid or value of fund units on that date if it is a
she cancel the contract
valuation date. If it is not a valuation date, then the
and obtain a refund?
value on the next valuation date applies.
(Refer to Section 2.1.15)
https://quizlet.com/1102411831/segragated-funds-questions-and-answers-flash-cards/?new 2/23
, 11/3/25, 3:48 PM Segragated Funds questions and answers Flashcards | Quizlet
Alyssa invested $75,000 in $98,000: The reset option made the $84,000 subject
an individual variable to the death benefit and maturity guarantee. Since the
insurance contract that fund value was $98,000, which is higher than the
had a 75% maturity and maturity and death benefit guarantees, the death
death benefit guarantee. benefit or maturity guarantee value did not need to
Six years into the contract, come into play.
Alyssa exercised her reset
option when the value of (Refer to Section 2.1.2)
the contract was $84,000.
Alyssa died in the 11th year
of the contract. The fund
was valued at $98,000 at
the time of her death.
How much would her
beneficiary receive from
this contract?
An investment in a It is essential for the investor to know the value of
segregated fund provides units when they are assigned if he wishes to follow
the investor with an performance and monitor changes in value. An
assigned number of units. increase may indicate that a reset is in order. A
Why is it important for a decrease could suggest a fund switch is in order.
segregated fund investor
to know the value of the (Refer to Section 2.1.4)
units when they are
assigned?
A deferred annuity is a contract that is purchased,
generally with a lump sum amount of money,
providing a guaranteed sum of money at a specified
What is a deferred
time in the future (i.e., yearly, monthly, quarterly or bi-
annuity?
annually).
(Refer to Section 3.4.2)
https://quizlet.com/1102411831/segragated-funds-questions-and-answers-flash-cards/?new 3/23
Segragated Funds questions and answers
Save
Terms in this set (43)
Information folder:
What document must a
client be given prior to
Contains all of the essential information for an
completing an application
informed purchasing decision. It must be given to the
for an Individual Variable
client before he completes an application and makes
Insurance Contract (IVIC)?
the decision to purchase an IVIC
If a client decides to invest $60,833
$50,000 today in an
investment that pays 4%
annually, how much would
this investment be worth
at the end of the fifth
year?
A segregated fund is a pool of funds held by an
insurance company
What is a segregated
- these funds are separate from the other assets of the
fund?
insurance company
- individual Variable Insurance contract
https://quizlet.com/1102411831/segragated-funds-questions-and-answers-flash-cards/?new 1/23
,11/3/25, 3:48 PM Segragated Funds questions and answers Flashcards | Quizlet
1) Maturity and Death Benefit guarantees
2) Resets features in some contracts
3) Possible creditor Protection
What are the six
advantages of Segregated
4) Right to designate a beneficiary and bypass
Funds?
probate
5) Tax benefitwhen capital losses are incurred
6) Investor protection by assuris
From the following list, Lowest to highest:
determine the risk level of 1) Money Market Fund
the funds, from the lowest 2) Bond Funds
to highest risk: 3) Dividend Funds
1) Equity funds 4) Equity Funds
2) Bond funds
3) Dividend funds
4) Money market funds
Yes.
An investor may cancel or rescind the segregated
Jennice receives her final
fund contract in writing within the specific time
segregated fund contract
limitation set by the insurer providing the contract.
from her agent, but
Two days is the usual length of time permitted. The
decides to cancel the
investor receives the lesser of the amount of premium
contract a day later. Can
paid or value of fund units on that date if it is a
she cancel the contract
valuation date. If it is not a valuation date, then the
and obtain a refund?
value on the next valuation date applies.
(Refer to Section 2.1.15)
https://quizlet.com/1102411831/segragated-funds-questions-and-answers-flash-cards/?new 2/23
, 11/3/25, 3:48 PM Segragated Funds questions and answers Flashcards | Quizlet
Alyssa invested $75,000 in $98,000: The reset option made the $84,000 subject
an individual variable to the death benefit and maturity guarantee. Since the
insurance contract that fund value was $98,000, which is higher than the
had a 75% maturity and maturity and death benefit guarantees, the death
death benefit guarantee. benefit or maturity guarantee value did not need to
Six years into the contract, come into play.
Alyssa exercised her reset
option when the value of (Refer to Section 2.1.2)
the contract was $84,000.
Alyssa died in the 11th year
of the contract. The fund
was valued at $98,000 at
the time of her death.
How much would her
beneficiary receive from
this contract?
An investment in a It is essential for the investor to know the value of
segregated fund provides units when they are assigned if he wishes to follow
the investor with an performance and monitor changes in value. An
assigned number of units. increase may indicate that a reset is in order. A
Why is it important for a decrease could suggest a fund switch is in order.
segregated fund investor
to know the value of the (Refer to Section 2.1.4)
units when they are
assigned?
A deferred annuity is a contract that is purchased,
generally with a lump sum amount of money,
providing a guaranteed sum of money at a specified
What is a deferred
time in the future (i.e., yearly, monthly, quarterly or bi-
annuity?
annually).
(Refer to Section 3.4.2)
https://quizlet.com/1102411831/segragated-funds-questions-and-answers-flash-cards/?new 3/23
