LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
Family law legislation intersects with life insurance when:
- AOnly property division on separation, since the policy's cash value is a family asset to be split
- BNever, since insurance contracts are governed by the Insurance Act and family law has no reach into them under any circumstances
- Orders or agreements require insurance for support or designate a former spouse or children, sometimes overriding later designations
- DOnly in Quebec, where the Civil Code treats the family patrimony as including insurance contracts
Correct answer: C) Orders or agreements require insurance for support or designate a former spouse or children, sometimes overriding later designations
Agents encounter family law through support orders requiring insurance. Ignoring a court-ordered designation exposes the estate and the agent to claims.
Why the other options are wrong
- ASupport orders also apply.
- BFamily law intersects with insurance frequently.
- DFamily law intersects with insurance in every province.
Exam tip
Court orders can require and protect beneficiary designations.
Common mistake
Changing a beneficiary contrary to a separation agreement.
What this tests
CISRO competency component 1.1 — 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.