LLQP Ethics & Professional Practice · Component 1.5 · 60% of the exam
A 'declaration' for beneficiary purposes under the Insurance Act is:
- AA verbal statement made to the agent, who records it in the file and confirms it in writing to the insurer within thirty days
- BOnly the original application, since the Act treats later documents as amendments rather than declarations
- CA court order directing the insurer to pay a particular beneficiary, obtained by the owner or the beneficiary
- A written instrument signed by the owner that identifies the contract and designates or changes the beneficiary
Correct answer: D) A written instrument signed by the owner that identifies the contract and designates or changes the beneficiary
The declaration is the usual way to change beneficiaries; the insurer's form qualifies.
Why the other options are wrong
- AA declaration must be written and signed.
- BLater declarations change the original.
- CCourt orders are different instruments.
Exam tip
Declaration = signed writing identifying the contract.
Common mistake
Accepting a beneficiary change by email without signature.
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.