Seg Funds Disclosure, Suitability & Contract Service question: segregated fund contract for Leticia

Seg FundsDisclosure, Suitability & Contract Service

Mateo, an agent in Kamloops, British Columbia, has just placed a segregated fund contract for Leticia, 57, who wanted growth, a death benefit guarantee for her children and some access to cash. He is now drafting the written reasons why letter to send her after the contract is issued. Which must be in the reasons why letter?

A How the advice meets her needs, and any unmet needs
B The projected return of each fund over the next 10 years
C The agent's sales results for the past year
D A comparison with every competitor's contract

Show the answer and explanation

Answer: A. How the advice meets her needs, and any unmet needs

The written explanation should include the information collected, the needs identified, how the recommendation meets those needs and which needs cannot be met and why, the client's instructions, and the sales charge option chosen. Source: CCIR/CISRO Segregated Funds Guidance (Nov 2025), s. 7.7.2.1 (as at 12 Oct 2026).

Common mistake

Leaving out unmet needs.

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Related Seg Funds practice questions

Nina, a life agent in Oakville, Ontario, meets Gwen, 63, who wants to invest $120,000 from a maturing GIC in a segregated fund contract. Nina is running late for another appointment, so she hands Gwen the information folder and says, 'It's all in there.' Gwen intends to sign the application at their next meeting. What else is expected of Nina before the client applies?Omar, a life agent in Brandon, Manitoba, sold a segregated fund contract to Ruby, 51, eighteen months ago, after completing a full KYC review. At a community event he learns from Ruby herself that she has lost her job at the local plant and will now need regular income from her savings. Her next scheduled review is not due for another 18 months. What should he do?Ana, 47, lives in Winnipeg, Manitoba, with her husband and two teenagers. Three years ago she bought a non-registered segregated fund contract with a 10-year maturity guarantee and a deferred sales charge schedule. She now calls her agent to say she has lost her job as a warehouse supervisor and will need cash for household bills within 6 months. Her husband's wages cover about half of the family's expenses. Apart from the contract, she has $15,000 in a savings account and no other investments. What should the agent do?

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Original study material mapped to the public CISRO curriculum; not a real test question.Not affiliated with CISRO, CCIR or any provincial insurance regulator. Verify figures and rules against current guidance before relying on them.