LLQP Ethics & Professional Practice · Component 1.4 · 60% of the exam
The 'exclusions' in a life policy commonly include:
- Suicide within two years and, by endorsement, hazardous activities, war or specific conditions
- BDeath abroad in every case, since the insurer cannot verify a death that occurs outside Canada
- CAll accidental deaths, since accidents are covered by a separate accidental death rider rather than the base policy
- DEvery illness diagnosed after issue, since the insurer priced the policy on the health disclosed at application
Correct answer: A) Suicide within two years and, by endorsement, hazardous activities, war or specific conditions
Life insurance exclusions are narrow. Endorsed exclusions must be explained and accepted by the owner.
Why the other options are wrong
- BDeath abroad is generally covered.
- CAccidents are covered by the base policy.
- DIllness is fully covered by life insurance.
Exam tip
Life exclusions: suicide (2 yrs), endorsed hazards/conditions.
Common mistake
Failing to explain an aviation exclusion to a private pilot.
What this tests
CISRO competency component 1.4 — 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.