LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
The federal Genetic Non-Discrimination Act affects the legal framework of life insurance by:
- ARequiring genetic tests before insurers may issue large policies, so that the risk is priced accurately for every applicant
- BBanning all questions about family medical history, since they are a proxy for genetic information
- CHaving no effect on insurance, since the Act applies to employment and government services only
- Prohibiting a genetic test or its results as a condition of any contract, while family history remains permitted
Correct answer: D) Prohibiting a genetic test or its results as a condition of any contract, while family history remains permitted
The Act was upheld by the Supreme Court of Canada. Insurers and agents must not ask for genetic test results.
Why the other options are wrong
- AIt prohibits requiring them.
- BFamily history is still a lawful question.
- CIt directly restricts underwriting practice.
Exam tip
No genetic test requirement or disclosure; family history OK.
Common mistake
Asking an applicant to disclose a genetic test result.
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.