Segregated funds & annuities (advocis
material) Exam 2026 Questions and
Answers
The investor who pays a _______pays no further sales fee if she redeems units
during the term of the contract. - Correct answer-front end load
A segregated fund in a _____is bound by the rule that apply to all_____. Therefore,
the oldest age at which a contract can begin as an _____is 71, deposits can be made
untill December 31 of the year in which the contract owner turns 71 Then, the
_____is converted to a registered retirement income fund (RRIF). - Correct
answer-Registered retirement savings plan
Deposits or premiums paid into a non registered account or TFSA are not tax-
deductible, however, they are tax-deductible when paid into a _____, except when
the account is a RESP or RDSP. - Correct answer-Registered account
Annuities that pay an income are called _____, they are differentiated by whether
the payout begins immediately or at a future date (deferred annuity). - Correct
answer-Payout annuities
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,Once annuity payments start, they generally cannot be stopped before the end of
the payment period. Each annuity payment is the same unless the annuity is
_____or variable. Most annuities are issued with a set, or level payment. - Correct
answer-indexed
If a contracts owner surrenders her term annuity and receives its commuted value,
____would no longer exist for the sum received. - Correct answer-Creditor
Protection
_____is calculated as follows :
PV x (1 + interest) ^n - Correct answer-Future Value
Once all approvals are in place, the fund is open for investment. The date when the
fund begins operation is its _____date. - Correct answer-inception
Insurers keep their _____separate from other company assets, thus giving them
their name. - Correct answer-Segregated funds
Some investments guarantee that the full amount invested will be repaid plus a
profit. These investments include _____, and some bonds. - Correct answer-
Guaranteed investment certificates
Real return is calculated as the _____on an investment minus the rate of inflation. -
Correct answer-Nominal Return
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, The three main asset classes are stocks, cash, and _____. Two other classes are
often added, they are real estate and commodities. - Correct answer-Bonds
_____is calculated as
FV % (1 + interest) ^n - Correct answer-Present value
Some segregated funds invest in other segregated funds, these are called _____. -
Correct answer-funds of funds
Prior to contract maturity, an investor can lose up to the sum invested since the
_____does not apply. The investor must also be prepared for the minimum 10 year
term of the investment. The investor may be unable to take advantage of other
investment opportunities during those 10 years. - Correct answer-Maturity
guarantee
When the ______at the time of purchase is fixed, that payment will be received for
the duration of the annuity. It is guaranteed. If interest rates rise or fall
the______remains constant. - Correct answer-Annuity payment
The highest rated bonds are called______. They have a AAA rating. On the other
end of the spectrum are bonds that are most likely to default on repayment. They
are called high yield or junk bonds, which are BB or lower. - Correct answer-
Investment grade bonds
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
material) Exam 2026 Questions and
Answers
The investor who pays a _______pays no further sales fee if she redeems units
during the term of the contract. - Correct answer-front end load
A segregated fund in a _____is bound by the rule that apply to all_____. Therefore,
the oldest age at which a contract can begin as an _____is 71, deposits can be made
untill December 31 of the year in which the contract owner turns 71 Then, the
_____is converted to a registered retirement income fund (RRIF). - Correct
answer-Registered retirement savings plan
Deposits or premiums paid into a non registered account or TFSA are not tax-
deductible, however, they are tax-deductible when paid into a _____, except when
the account is a RESP or RDSP. - Correct answer-Registered account
Annuities that pay an income are called _____, they are differentiated by whether
the payout begins immediately or at a future date (deferred annuity). - Correct
answer-Payout annuities
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Once annuity payments start, they generally cannot be stopped before the end of
the payment period. Each annuity payment is the same unless the annuity is
_____or variable. Most annuities are issued with a set, or level payment. - Correct
answer-indexed
If a contracts owner surrenders her term annuity and receives its commuted value,
____would no longer exist for the sum received. - Correct answer-Creditor
Protection
_____is calculated as follows :
PV x (1 + interest) ^n - Correct answer-Future Value
Once all approvals are in place, the fund is open for investment. The date when the
fund begins operation is its _____date. - Correct answer-inception
Insurers keep their _____separate from other company assets, thus giving them
their name. - Correct answer-Segregated funds
Some investments guarantee that the full amount invested will be repaid plus a
profit. These investments include _____, and some bonds. - Correct answer-
Guaranteed investment certificates
Real return is calculated as the _____on an investment minus the rate of inflation. -
Correct answer-Nominal Return
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, The three main asset classes are stocks, cash, and _____. Two other classes are
often added, they are real estate and commodities. - Correct answer-Bonds
_____is calculated as
FV % (1 + interest) ^n - Correct answer-Present value
Some segregated funds invest in other segregated funds, these are called _____. -
Correct answer-funds of funds
Prior to contract maturity, an investor can lose up to the sum invested since the
_____does not apply. The investor must also be prepared for the minimum 10 year
term of the investment. The investor may be unable to take advantage of other
investment opportunities during those 10 years. - Correct answer-Maturity
guarantee
When the ______at the time of purchase is fixed, that payment will be received for
the duration of the annuity. It is guaranteed. If interest rates rise or fall
the______remains constant. - Correct answer-Annuity payment
The highest rated bonds are called______. They have a AAA rating. On the other
end of the spectrum are bonds that are most likely to default on repayment. They
are called high yield or junk bonds, which are BB or lower. - Correct answer-
Investment grade bonds
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
