LLQP Ethics & Professional Practice · Component 1.2 · 60% of the exam
A 'joint owner' arrangement on a life policy (two owners) means:
- Both owners generally act together for changes, and the survivor typically becomes sole owner on death
- BThe insurer chooses which owner's instructions to follow when the two owners disagree
- CNeither owner can act at all, since joint ownership freezes the policy until one owner dies
- DEach owns half and can act alone on their half, including changing the beneficiary of that half without the other's consent
Correct answer: A) Both owners generally act together for changes, and the survivor typically becomes sole owner on death
Joint ownership is common for spouses owning a policy on one life. The signature requirements protect both owners.
Why the other options are wrong
- BThe joint owners, not the insurer, decide on changes.
- CJoint owners can act, but together.
- DJoint action is generally required.
Exam tip
Joint owners act together; survivor takes ownership.
Common mistake
Processing a change with one joint owner's signature.
What this tests
CISRO competency component 1.2 — 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.