LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
Provincial human rights legislation affects insurance by:
- ARequiring identical premiums for everyone, since any difference in price is discrimination on a protected ground under the code
- Prohibiting discrimination on protected grounds while permitting bona fide actuarial distinctions
- CHaving no application to insurance, since insurance is exempt from human rights codes in every province
- DProhibiting all risk classification, so insurers must pool every applicant at a single rate regardless of health
Correct answer: B) Prohibiting discrimination on protected grounds while permitting bona fide actuarial distinctions
Human rights codes contain insurance exemptions that allow actuarially justified distinctions but not arbitrary ones.
Why the other options are wrong
- APremiums may differ on justified grounds.
- CCodes apply, with a specific exemption.
- DReasonable actuarial classification is permitted.
Exam tip
Human rights: no discrimination except bona fide actuarial grounds.
Common mistake
Refusing to serve a client on a protected ground with no actuarial basis.
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.