LLQP Ethics & Professional Practice · Component 1.5 · 60% of the exam
A Quebec client designates her married spouse as beneficiary without saying anything about revocability. The likely result is that:
- Athe designation takes effect only once it has been registered with a court in the province of Quebec
- Bthe designation is revocable, as it would be in the common law provinces
- the designation is presumed irrevocable unless it is expressly stated to be revocable
- Dthe designation is invalid because Quebec requires designations to be made in a will
Correct answer: C) the designation is presumed irrevocable unless it is expressly stated to be revocable
In Quebec a designation in favour of a married or civil union spouse is presumed irrevocable unless stated otherwise. The client cannot then change it without consent, which is why the point must be raised when the form is completed.
Why the other options are wrong
- ANo court registration is required for a beneficiary designation.
- BQuebec differs from the common law provinces precisely on this point.
- DDesignations may be made on the insurer's form as elsewhere.
Exam tip
Quebec plus married spouse equals presumed irrevocable unless stated otherwise.
Common mistake
Applying common law revocability assumptions to a Quebec spousal designation.
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.