LLQP Ethics & Professional Practice · Component 1.6 · 60% of the exam
A claim where the beneficiary is the estate and there is no will:
- ACannot be paid at all, since the estate designation is void when there is no will to identify the heirs who are entitled to receive it
- Is paid to the court-appointed administrator, then distributed under intestacy rules; slower and costlier
- CGoes to the provincial government, since an intestate estate escheats to the Crown when there is no will
- DIs paid to the next of kin directly by the insurer, which applies the intestacy rules itself
Correct answer: B) Is paid to the court-appointed administrator, then distributed under intestacy rules; slower and costlier
Intestate estate claims illustrate the delay a named beneficiary avoids.
Why the other options are wrong
- AIt is payable to the administrator once appointed.
- CEscheat applies only if no heirs exist.
- DAn administrator must be appointed before payment.
Exam tip
Estate beneficiary + no will = administrator + intestacy.
Common mistake
Underestimating the delay of an intestate estate claim.
What this tests
CISRO competency component 1.6 — 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.