Segregated Funds & Annuities -
Chapter 5 questions and answers
Interest rate risk.
(Reference: Chapter 5) - answer 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) - answer 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) - answer 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) - answer 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) - answer What is a short-term trading fee?
, Management Expense Ratio.
(Reference: Chapter 5) - answer What does MER stand for?
What does CCIR stand for? - answer The Canadian Council of Insurance
Regulators
What does CISRO stand for? - answer Canadian Insurance Services
Regulatory Organizations
What does the agent do when the needs analysis is completed? - answer The
agent will make recommendations based on the client's characteristics and
needs.
Information provided to the client can be fact-based and/or opinion based.
What should the agent do when presenting? - answer The agent should
always be clear with the client about which information is factual and which
is his opinion.
When it comes to the segregated fund recommendation who makes the final
decision? - answer The client always makes the final decision
When two different types of funds are recommended to the client what must
be provided for each type? - answer The rationale of why that type would
meet the client's needs and wants.
What is a lump-sum deposit? - answer A lump-sum deposit is a one-time
deposit that may or may not be accompanied by subsequent periodic
deposits.
Chapter 5 questions and answers
Interest rate risk.
(Reference: Chapter 5) - answer 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) - answer 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) - answer 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) - answer 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) - answer What is a short-term trading fee?
, Management Expense Ratio.
(Reference: Chapter 5) - answer What does MER stand for?
What does CCIR stand for? - answer The Canadian Council of Insurance
Regulators
What does CISRO stand for? - answer Canadian Insurance Services
Regulatory Organizations
What does the agent do when the needs analysis is completed? - answer The
agent will make recommendations based on the client's characteristics and
needs.
Information provided to the client can be fact-based and/or opinion based.
What should the agent do when presenting? - answer The agent should
always be clear with the client about which information is factual and which
is his opinion.
When it comes to the segregated fund recommendation who makes the final
decision? - answer The client always makes the final decision
When two different types of funds are recommended to the client what must
be provided for each type? - answer The rationale of why that type would
meet the client's needs and wants.
What is a lump-sum deposit? - answer A lump-sum deposit is a one-time
deposit that may or may not be accompanied by subsequent periodic
deposits.
