Seg Funds Disclosure, Suitability & Contract Service question: segregated fund contract to Ruby

Seg FundsDisclosure, Suitability & Contract Service

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?

A Ask the insurer to review her contract instead
B Update her information and recheck suitability
C Note it in the file but change nothing else
D Wait until the next three-year KYC update

Show the answer and explanation

Answer: B. Update her information and recheck suitability

When an intermediary knows or ought to know of a material change, the guidance expects him to document and update the customer's information and consider whether the existing advice remains suitable. Source: CCIR/CISRO Segregated Funds Guidance (Nov 2025), s. 6.2.6.1(b) (as at 12 Oct 2026).

Common mistake

Waiting for the scheduled review after a material change.

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Related Seg Funds practice questions

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?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?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.