Segregated Funds & Annuities - Chapter 5
Interest rate risk.
(Reference: Chapter 5) - ANS-Peter decides to invest $10,000 in a Canadian bond
segregated fund. What type of risk is Peter most exposed to?
A payout, life annuity.
(Reference: Chapter 5) - ANS-Robert is retiring and wants an annuitiy that will provide
him with a retirement income until he dies. Which annuity product would be the most
suitable?
An indexed annuity.
(Reference: Chapter 5) - ANS-Megan is a risk-adverse investor looking for an annuity
that will provide her with a retirement income that keeps pace with inflation. Which
annuity would be the most suitable?
The percentage of a fund's holdings that have been replaced during the previous year.
(Reference: Chapter 5) - ANS-What does portfolio turnover rate refer to?
A charge made against the value of a segregated fund if a switch occurs within a
specified period after purchase.
(Reference: Chapter 5) - ANS-What is a short-term trading fee?
Management Expense Ratio.
(Reference: Chapter 5) - ANS-What does MER stand for?
What does CCIR stand for? - ANS-The Canadian Council of Insurance Regulators
What does CISRO stand for? - ANS-Canadian Insurance Services Regulatory
Organizations
What does the agent do when the needs analysis is completed? - ANS-The agent will
make recommendations based on the client's characteristics and needs.
Interest rate risk.
(Reference: Chapter 5) - ANS-Peter decides to invest $10,000 in a Canadian bond
segregated fund. What type of risk is Peter most exposed to?
A payout, life annuity.
(Reference: Chapter 5) - ANS-Robert is retiring and wants an annuitiy that will provide
him with a retirement income until he dies. Which annuity product would be the most
suitable?
An indexed annuity.
(Reference: Chapter 5) - ANS-Megan is a risk-adverse investor looking for an annuity
that will provide her with a retirement income that keeps pace with inflation. Which
annuity would be the most suitable?
The percentage of a fund's holdings that have been replaced during the previous year.
(Reference: Chapter 5) - ANS-What does portfolio turnover rate refer to?
A charge made against the value of a segregated fund if a switch occurs within a
specified period after purchase.
(Reference: Chapter 5) - ANS-What is a short-term trading fee?
Management Expense Ratio.
(Reference: Chapter 5) - ANS-What does MER stand for?
What does CCIR stand for? - ANS-The Canadian Council of Insurance Regulators
What does CISRO stand for? - ANS-Canadian Insurance Services Regulatory
Organizations
What does the agent do when the needs analysis is completed? - ANS-The agent will
make recommendations based on the client's characteristics and needs.
