LLQP Ethics & Professional Practice · Component 1.3 · 60% of the exam
An agent who delivers a policy must:
- AHand it to the beneficiary, since the beneficiary is the person with the financial interest in the contract
- Deliver it to the owner, confirm insurability, collect premium, explain it, obtain signatures and report delivery
- CKeep the original on file and give the owner a summary, since the policy document belongs to the insurer
- DLeave it in the owner's mailbox with a covering letter, since personal delivery is not a regulatory requirement in any province
Correct answer: B) Deliver it to the owner, confirm insurability, collect premium, explain it, obtain signatures and report delivery
Delivery formalities complete contract formation and start the free-look period.
Why the other options are wrong
- AThe owner receives the policy.
- CThe owner must have the policy.
- DPersonal delivery with confirmation is expected.
Exam tip
Delivery: confirm health, collect premium, explain, sign, receipt.
Common mistake
Mailing a policy without a delivery confirmation.
What this tests
CISRO competency component 1.3 — 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.