LLQP Life Insurance · Component 1.1 · 35% of the exam
A client lives with a common-law partner. For beneficiary and creditor-protection purposes in common-law provinces, the partner is:
- ATreated as a business partner, so the designation carries no family-class protection
- Generally treated as a spouse once the relationship meets the provincial definition, so the designation can carry family-class protection
- CExcluded, since only a married spouse counts as family for beneficiary and creditor-protection purposes
- DRequired to be named irrevocably, since a revocable designation to a common-law partner is not recognized under provincial insurance law
Correct answer: B) Generally treated as a spouse once the relationship meets the provincial definition, so the designation can carry family-class protection
Provincial insurance legislation defines 'spouse' to include qualifying common-law partners in most provinces. The agent should confirm the definition that applies and name the partner explicitly rather than relying on the word 'spouse' in a form.
Why the other options are wrong
- AA domestic partner is not a business partner.
- CCommon-law partners meeting the provincial definition are generally treated as spouses.
- DIrrevocable designation is a choice, not a requirement.
Exam tip
Name common-law partners explicitly by name; do not rely on the word 'spouse'.
Common mistake
Assuming a common-law partner is automatically protected without a designation.
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.