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IFSE Institute Exam LLQP Topic 2 Question 1 Discussion

Actual exam question for IFSE Institute's LLQP exam
Question #: 1
Topic #: 2
[All LLQP Questions]

Owen meets with his insurance agent, Rachel, to review his investments. Owen is interested in segregated funds. In particular, he wants to know more about the reset feature.

What should Rachel tell Owen about resetting his funds?

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Suggested Answer: B

Rachel should inform Owen that some segregated funds offer an automatic reset feature, which adjusts the guaranteed value periodically based on the fund's market performance. This can lock in gains during rising markets without requiring manual intervention. According to LLQP resources, automatic resets can occur on specific anniversaries or under certain conditions specified in the contract.

Option A is incorrect as not all segregated funds offer a reset feature. Option C is incorrect as there may be costs associated with funds that provide reset options. Option D is incorrect because resets typically lock in gains, not losses.


by Jerry at Oct 20, 2024, 11:15 PM

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Frederica
5 months ago
Hold up, is the reset feature like a super power that can make the market value go up or down? That would be hilarious!
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Marva
5 months ago
I'm a little confused about this reset feature. Hopefully, Rachel can explain it in a way that makes sense.
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Teresita
5 months ago
All segregated funds offering a reset feature? That sounds too good to be true.
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Leontine
4 months ago
D) The reset feature can be used if the market value increases or decreases.
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Brett
4 months ago
C) There is no additional cost for a fund that provides a reset feature.
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India
4 months ago
B) The reset feature may be automatic.
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Shasta
4 months ago
A) All segregated funds offer a reset feature.
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Scarlet
5 months ago
I hope the reset feature doesn't come with any hidden costs. That would be a dealbreaker for me.
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Bernardo
4 months ago
Owen: Perfect, that's exactly what I was hoping for.
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Terrilyn
4 months ago
Rachel: There is no additional cost for a fund that provides a reset feature.
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Lauran
4 months ago
Owen: That's good to know. I don't want any surprises.
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Barrie
4 months ago
Rachel: The reset feature may be automatic.
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Merilyn
5 months ago
Oh, I didn't know the reset feature could be used even if the market value decreases. That's good to know!
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Crista
4 months ago
Rachel: It's a great benefit to have in your investments.
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Kristal
4 months ago
Owen: That's good to know. I like that flexibility.
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Santos
4 months ago
Rachel: Yes, the reset feature can be used if the market value decreases.
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Rhea
5 months ago
Hmm, I'm pretty sure the reset feature is not automatic. Let's see what Rachel has to say.
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Reta
4 months ago
Owen: Got it. Thanks for clarifying, Rachel.
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Emerson
4 months ago
Rachel: You can use the reset feature if the market value increases or decreases.
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Brice
5 months ago
Owen: Oh, I see. So, how does it work then?
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Sherell
5 months ago
Rachel: The reset feature is not automatic, Owen.
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Selene
6 months ago
I agree, she should also mention that the reset feature can be used if the market value increases or decreases.
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Onita
6 months ago
I think Rachel should tell Owen that not all segregated funds offer a reset feature.
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