Seg Funds Disclosure, Suitability & Contract Service question: expected of Nina before

Seg FundsDisclosure, Suitability & Contract Service

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?

A Summarize past returns of each fund chosen
B Have the client sign that she read it all
C Mail a second copy to the client's home
D Explain the Key Facts and the Fund Facts

Show the answer and explanation

Answer: D. Explain the Key Facts and the Fund Facts

The guidance expects intermediaries to discuss and explain the Key Facts part of the information folder and the Fund Facts for each fund before the customer applies, not just hand them over. Source: CCIR/CISRO Segregated Funds Guidance (Nov 2025), s. 7.2.2.2 (as at 12 Oct 2026).

Common mistake

Treating delivery as disclosure.

Practice more Seg Funds Disclosure, Suitability & Contract Service questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practicing →

Study note: Disclosure, Suitability & Contract Service Seg Fundspractice questions & mock exams

Related Seg Funds practice questions

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?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?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?

Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.

Start practicing →

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.