LLQP Ethics & Professional Practice · Component 1.5 · 60% of the exam
A designation of the 'spouse' by that word rather than by name:
- AAutomatically updates on remarriage, so the new spouse becomes beneficiary without any further action
- BMeans the insurer decides which spouse is intended, based on the marital status on its records
- Is valid but can create ambiguity after divorce or remarriage; naming the person is best practice
- DIs void, since the Act requires every beneficiary to be identified by name in the designation
Correct answer: C) Is valid but can create ambiguity after divorce or remarriage; naming the person is best practice
Class designations invite disputes; specific naming plus relationship is clearer.
Why the other options are wrong
- AIt creates ambiguity, not automatic update.
- BCourts resolve ambiguity, not the insurer.
- DDesignating 'my spouse' is valid, merely ambiguous.
Exam tip
Name the beneficiary; add the relationship for clarity.
Common mistake
Using 'my spouse' without a name.
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.