LLQP Ethics & Professional Practice · Component 1.5 · 60% of the exam
For a group life certificate, the beneficiary designation is made by:
- AThe union representing the members, since the group contract is negotiated under the collective agreement
- BThe employer as policyholder, since the employer holds the master contract with the insurer
- The group life insured, who has the same statutory rights to designate and change as an individual owner
- DThe insurer, which pays the proceeds to the member's estate unless the employer directs otherwise
Correct answer: C) The group life insured, who has the same statutory rights to designate and change as an individual owner
Group members control their own designations; the same exemption-from-seizure rules apply.
Why the other options are wrong
- AA union does not designate a member's beneficiary.
- BThe sponsor does not designate.
- DThe insurer never designates a group member's beneficiary.
Exam tip
Group members designate their own beneficiaries.
Common mistake
Leaving group designations blank at enrolment.
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.