LLQP Life Insurance · Component 1.1 · 35% of the exam
A client in a same-sex marriage asks whether the usual spousal rules apply to his estate. The agent should confirm that:
- Athe rollover applies only where the couple have been married for a minimum period
- a rollover to a spouse applies regardless of the couple's gender
- Cthe estate must obtain a court order before a rollover to the spouse is available
- Dprovincial law treats the couple differently for beneficiary designations
Correct answer: B) a rollover to a spouse applies regardless of the couple's gender
Married spouses are treated alike for the rollover of capital property and registered plans, and for beneficiary designations and survivor benefits. The planning follows the ordinary rules for spouses.
Why the other options are wrong
- ANo minimum duration applies to a marriage for rollover purposes.
- CNo court order is needed for a spousal rollover.
- DDesignation rules apply to spouses without distinction.
Exam tip
Spousal treatment for rollovers and designations applies to all married couples.
Common mistake
Hesitating over ordinary spousal planning where the rules plainly apply.
What this tests
CISRO competency component 1.1 — Assess the client's needs and situation — which is weighted at 35% of the Life Insurance module. Written against the published curriculum.
More from component 1
- A client's existing policies were all sold by another agent who has left the business. The reviewing agent should:
- A client supports an adult child with a permanent disability who will never be self-sufficient. In the needs analysis this is:
- A self-employed client's income fluctuates widely year to year. When determining the income to replace, the agent should:
- A 58-year-old client plans to retire at 65 and has a pension that will pay a survivor benefit. How does time to retirement affect the life insurance need?
- Which of the following is a capital expense arising at death, rather than an ongoing income need?
- A client is the sole income earner in a household with a stay-at-home spouse and two young children. The greatest risk that life insurance on the client addresses is:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.