LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
An insurer cannot trace the beneficiary of a matured benefit after extensive searching. Unclaimed property arrangements exist so that:
- Athe benefit is distributed among the insurer's remaining policyholders as a dividend
- Bthe insurer may keep the money after a stated period has passed without contact
- the amount is preserved and can be claimed later by the rightful owner or their heirs
- Dthe amount is forfeited to the provincial regulator to fund its supervision activities
Correct answer: C) the amount is preserved and can be claimed later by the rightful owner or their heirs
Unclaimed balances are reported and held so the money remains recoverable. Searchable databases exist, and an agent can point a family toward them when a benefit is believed to exist but has never been paid.
Why the other options are wrong
- AUnclaimed amounts are not distributed to other policyholders.
- BThe insurer does not simply retain an unclaimed benefit.
- DThe money is preserved for the owner rather than funding a regulator.
Exam tip
Unclaimed benefits are preserved and searchable, not forfeited.
Common mistake
Telling a family an old unclaimed benefit is lost for good.
What this tests
CISRO competency component 2.1 — Integrate into practice the rules governing the activities of life insurance agents — which is weighted at 40% of the Ethics & Professional Practice module. Written against the published curriculum.
More from component 2
- A prospective client wants to confirm that an agent is properly licensed before meeting him. She should:
- A dual-licensed agent's mutual fund business is reviewed following a client complaint. The review will be conducted by:
- Assuris coverage applies to:
- OLHI's services are available to:
- Complaints about an agent's conduct (as opposed to an insurer's claim decision) should be directed to:
- The best summary of an agent's ethical obligations is to:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.