LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
The 'uniform' life insurance provisions in the common-law provinces' Insurance Acts mean that:
- AInsurers draft their own contract rules, which the provinces adopt uniformly once the industry has agreed on them
- Provinces outside Quebec have adopted substantially similar statutory provisions, with local variations
- CQuebec follows the same act as the other provinces, so an agent licensed anywhere may apply one set of rules
- DEvery province has identical insurance law, so a contract issued in one province reads the same in all others
Correct answer: B) Provinces outside Quebec have adopted substantially similar statutory provisions, with local variations
The Uniform Life Insurance Act model underpins the common-law provinces' statutes. Quebec's Civil Code governs insurance there and differs materially.
Why the other options are wrong
- ALegislatures make the law; insurers must comply.
- CQuebec uses the Civil Code.
- DVariations exist among provinces.
Exam tip
Common-law provinces share uniform life insurance provisions; Quebec is separate.
Common mistake
Applying Quebec civil-code rules to an Ontario contract.
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.