LLQP Ethics & Professional Practice · Component 1.5 · 60% of the exam
A beneficiary who feloniously causes the death of the life insured:
- AReceives the proceeds, since the contract names the beneficiary and the insurer cannot look behind the designation
- BReceives half of the proceeds, with the other half going to the estate as a penalty for the wrongdoing
- Is disqualified under public policy; the proceeds pass as if the beneficiary had predeceased
- DShares the proceeds with the other beneficiaries, since the designation cannot be varied after death
Correct answer: C) Is disqualified under public policy; the proceeds pass as if the beneficiary had predeceased
The 'slayer rule' is a common-law principle applied to insurance.
Why the other options are wrong
- AA beneficiary who feloniously causes the death is disqualified.
- BThe disqualified beneficiary receives nothing.
- DDisqualification is complete; there is no sharing.
Exam tip
Slayer rule: killer beneficiary takes nothing.
Common mistake
Assuming the contract wording alone governs such cases.
What this tests
CISRO competency component 1.5 — Integrate into practice the legal aspects of insurance and annuity contracts — which is weighted at 60% of the Ethics & Professional Practice module. Written against the published curriculum.
More from component 1
- An 'assignee' of a life insurance policy is:
- A corporation as policyowner and beneficiary of a policy on a key employee:
- A 'trustee' named to receive proceeds on behalf of a beneficiary:
- The 'automatic premium loan' (APL) provision:
- A life insurance contract 'matures' when:
- The 'assignment' provision typically states that:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.