LLQP Ethics & Professional Practice · Component 1.5 · 60% of the exam
A designation of a minor as irrevocable beneficiary:
- ACan be changed by the parent on the child's behalf, since a parent may consent for a minor in any contract
- BConverts automatically to revocable, since a minor cannot hold a vested interest under the Act
- Is permitted, but cannot be changed while the beneficiary is a minor because the minor cannot consent
- DIs void, since the Act requires an irrevocable beneficiary to be an adult with legal capacity
Correct answer: C) Is permitted, but cannot be changed while the beneficiary is a minor because the minor cannot consent
Irrevocable designations of minors create rigidity; the Act provides that the designation cannot be altered during minority.
Why the other options are wrong
- AParents cannot consent for the child in this context.
- BIt stays irrevocable.
- DAn irrevocable designation of a minor is valid, though rigid.
Exam tip
Irrevocable minor beneficiary = locked until majority.
Common mistake
Naming a minor irrevocably by accident.
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.