LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
Provincial 'unclaimed property' or unclaimed benefits regimes protect clients by:
- Providing a process for insurers to remit unclaimed proceeds and for beneficiaries to search and claim them later
- BPaying interest to the agent who placed the policy while the proceeds remain unclaimed by the beneficiary
- CConfiscating unclaimed proceeds for the province after the dormancy period, so that insurers cannot retain them
- DNothing in practice, since unclaimed insurance proceeds remain with the insurer indefinitely until a claim is made
Correct answer: A) Providing a process for insurers to remit unclaimed proceeds and for beneficiaries to search and claim them later
Lost-policy searches help beneficiaries who do not know a policy existed.
Why the other options are wrong
- BUnclaimed property regimes pay no interest to agents.
- CThe purpose is to preserve claims, not confiscate them.
- DIt is a real mechanism for recovering unclaimed proceeds.
Exam tip
Lost policies: OLHI search service; unclaimed property regimes.
Common mistake
Not telling clients to inform beneficiaries that a policy exists.
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.