LLQP Ethics & Professional Practice · Component 1.5 · 60% of the exam
A designation 'to my children' typically includes:
- All children living at death, including later-born and usually adopted, but not stepchildren unless named
- BStepchildren automatically, since the Act treats every child of the household as a child of the life insured
- COnly children living at the designation date, since a designation speaks from the moment it is made
- DGrandchildren as well, since the Act reads 'children' to include all descendants of the life insured
Correct answer: A) All children living at death, including later-born and usually adopted, but not stepchildren unless named
Class designations are read at the time of death; precise wording avoids excluding intended beneficiaries.
Why the other options are wrong
- BStepchildren need naming.
- CLater-born children are included.
- DGrandchildren are not 'children' unless per stirpes wording applies.
Exam tip
'Children' = all children at death; name stepchildren explicitly.
Common mistake
Assuming a stepchild is covered by 'my children'.
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.