According to the LLQP Segregated Funds and Annuities curriculum and regulatory requirements governing insurance-based investments, certain documents must be provided or completed at the time a segregated fund contract is sold. These requirements are designed to ensure client disclosure, informed consent, and compliance with anti–money laundering (AML) and consumer protection rules.
First, an information folder is mandatory. The LLQP study guide explains that insurers must provide clients with an information folder before or at the time the contract is issued. This folder outlines the nature of segregated funds as insurance contracts, explains guarantees, fees, risks, and the client’s right of rescission. Without this document, the disclosure requirement is not met.
Second, Fund Facts (also referred to in insurance as Fund Facts–like disclosure documents) must be provided for each segregated fund selected. These documents summarize key information such as investment objectives, historical performance, fees, and risks in a standardized format. The LLQP curriculum emphasizes that Fund Facts must be delivered before or at the point of sale, even if the final fund selection occurs during the meeting.
Third, a third-party determination form is required under AML legislation whenever there is a possibility that someone other than the client may be contributing funds or exercising control. Since the client is investing a lump sum and Travis has limited prior relationship with him, the third-party determination form must be completed to confirm whether the funds belong solely to the client or to someone else.
The other documents are not mandatory in this scenario. A Pre-Authorized Contribution (PAC) form is only required if the client chooses to set up automatic ongoing contributions, which has not been indicated. Annual audited financial statements are publicly available but do not have to be physically provided at the time of sale.
Therefore, based strictly on LLQP Segregated Funds and Annuities regulatory and disclosure requirements, the correct answer is Option C: 2, 3, and 4 only.
