LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
Under provincial Insurance Acts, a 'contract of life insurance' includes:
- AOnly death benefits payable on the death of the life insured, with everything else classed as annuity business under a separate part
- Insurance payable on death, survival or a life-contingent event, plus A&S benefits on a life policy and annuities
- COnly annuities and segregated funds, since pure death benefits are governed by a separate part of the Act
- DProperty insurance as well as life insurance, since both are contracts of insurance under the same statute
Correct answer: B) Insurance payable on death, survival or a life-contingent event, plus A&S benefits on a life policy and annuities
The statutory definition determines which Part of the Act applies. Annuities and segregated funds are treated as life insurance for beneficiary and creditor-protection rules.
Why the other options are wrong
- ASurvival and annuity benefits are included.
- CLife insurance is broader than annuities.
- DProperty insurance is a separate class.
Exam tip
Life insurance definition includes annuities and seg funds — hence their beneficiary and creditor features.
Common mistake
Thinking beneficiary protection rules do not extend to annuities.
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.