Ethics Final Push

Question 1

What marketing/communication laws affect agents’ outreach?

Answer 1

National Do Not Call List (DNCL) rules and Canada’s Anti‑Spam Legislation (CASL).

(1.6.3; 1.6.4)

Question 2

Which provincially/territorially sponsored programs are commonly referenced?

Answer 2

No‑fault automobile insurance, workers’ compensation, and universal health/drug plans.

(1.4.2; 1.4.2.1–1.4.2.3)

Question 3

What constitutes ‘delivery of policy’ for effectiveness?

Answer 3

Insurer issues policy and it is delivered to the policyholder per contract/provincial rules; delivery triggers certain rights.

(2.2.1.5)

Question 4

Name the three main forms of persons recognized in law that agents may deal with.

Answer 4

Natural persons (individuals)
partnerships, and legal persons (corporations).

(1.2.2)

Question 5

What is ‘civil fault’ in the context of insurance practice?

Answer 5

A wrongful act/omission breaching a duty of care that can give rise to liability.

(1.3.1)

Question 6

What is ‘payment into court’ used for?

Answer 6

When entitlement is disputed or unclear, insurer may pay proceeds to the court to resolve competing claims.

(3.3)

Question 7

Give one example of denial of claim on public order grounds.

Answer 7

Claims arising from illegal acts or excluded unlawful activity may be denied.

(3.6.1)

Question 8

Who is the ‘claimant’ in a life claim scenario?

Answer 8

The person/entity legally entitled to claim proceeds (beneficiary, estate, assignee, or trustee).

(3.1.1)

Question 9

What are the pillars of ‘making proper disclosure’?

Answer 9

Clear product disclosure; replacement disclosure; disclose commission sharing and referral fees as required.

(4.2.4; 4.2.4.1–4.2.4.4)

Question 10

What is the general timeframe to pay a valid claim?

Answer 10

Insurers must pay within the statutory/contractual period after receiving satisfactory proof of claim.

(3.5)

Question 11

Define ‘trusts and trustees’ in simple terms for agents.

Answer 11

A trust separates legal ownership (trustee) from beneficial ownership (beneficiary); used in estate/benefits planning.

(1.2.8)

Question 12

What is the rule around company‑provided illustrations?

Answer 12

Do not alter/misuse illustrations; use approved, compliant materials only.

(4.2.3.12)

Question 13

What is OLHI’s role?

Answer 13

Independent dispute‑resolution service for life/health insurance complaints in Canada.

(4.1.4.4)

Question 14

What is the ‘10‑day free look’ right?

Answer 14

A statutory rescission right allowing the policyholder to cancel and receive a refund within the prescribed period.

(2.3.1)

Question 15

What is the primary role of provincial/territorial insurance regulators?

Answer 15

To license agents, enforce conduct rules, and protect consumers in their jurisdiction.

(4.1.2)

Question 16

What is the general rule for forming an individual insurance contract?

Answer 16

Offer
acceptance by insurer
consideration (premium), and compliance with statutory conditions.

(2.2.1)

Question 17

What is ‘temporary insurance’ in underwriting?

Answer 17

Provisional coverage (e.g., conditional receipt) before final approval, subject to stated conditions.

(2.2.1.2)

Question 18

Name the main actors in group insurance policies.

Answer 18

Plan sponsor
insurer
members (and possibly dependants)
beneficiaries.

(2.1.5–2.1.5.4)

Question 19

What does ‘holding out improperly’ mean?

Answer 19

Presenting oneself with titles/credentials or authority one does not have.

(4.2.3.11)

Question 20

What documentation is common for AD&D claims?

Answer 20

Accident report, medical records, death certificate, and proof of loss forms.

(3.7.1.1)

Question 21

What continuing obligations fall under ‘acting in compliance’?

Answer 21

Maintain E&O, document the file thoroughly, and follow contract delivery rules.

(4.2.5; 4.2.5.1–4.2.5.3)

Question 22

Who are the core parties to an individual policy?

Answer 22

Insurer, policyholder, life insured, and beneficiary.

(2.1)

Question 23

What is the general rule about using financial planner/advisor titles?

Answer 23

Use is restricted to those who qualify under applicable provincial title protection laws and regulations.

(4.3 – note on FP/FA title protection)

Question 24

How should agents manage conflicts of interest?

Answer 24

Prioritize client’s interest, disclose conflicts/potential conflicts, ensure product suitability, and avoid conflicting occupations.

(4.2.2; 4.2.2.1–4.2.2.4)

Question 25

What does CISRO do?

Answer 25

Coordinates regulatory services across jurisdictions and maintains the disciplinary actions database. ## Footnote (4.1.3)

Question 26

Differentiate absolute and collateral assignment.

Answer 26

Absolute transfers all rights to the assignee; collateral is a security interest only, limited to debt satisfaction. ## Footnote (2.5.1–2.5.2)

Question 27

Name two core ethical values emphasized for agents.

Answer 27

Care, competence, integrity, client‑first mindset, transparency, and fairness. ## Footnote (4.2.7)

Question 28

What is a contingent beneficiary?

Answer 28

A backup beneficiary who receives proceeds if the primary beneficiary predeceases or cannot take. ## Footnote (2.1.4.4)

Question 29

List the federally sponsored or facilitated programs relevant to agents.

Answer 29

CPP (including disability), OAS with GIS, and Employment Insurance. ## Footnote (1.4.1; 1.4.1.1–1.4.1.3)

Question 30

What is 'commingling' of funds?

Answer 30

Misappropriating client funds by mixing them with personal/business funds; strictly prohibited. ## Footnote (4.2.3.9)

Question 31

What does CCIR focus on?

Answer 31

Harmonizing insurance regulation and issuing guidance on market conduct. ## Footnote (4.1.4.5)

Question 32

What is a Managing General Agent (MGA)?

Answer 32

A distribution intermediary contracted by insurers to recruit/support agents and perform certain administrative and compliance functions. ## Footnote (1.1.6)

Question 33

What key point about minors and guardians should agents remember?

Answer 33

Minors generally lack capacity to contract; guardians or legal representatives may be required for policy decisions. ## Footnote (1.2.3)

Question 34

Why is misrepresentation prohibited?

Answer 34

It deceives clients/insurers and can void coverage and lead to sanctions. ## Footnote (4.2.3.8)

Question 35

How can marriage and common-law status affect insurance planning?

Answer 35

It impacts beneficiary designations, property rights, insurable interest, and consent requirements. ## Footnote (1.2.5)

Question 36

Why should agents know bankruptcy basics?

Answer 36

Bankruptcy can affect ownership, creditor protection, and assignment of policies/benefits. ## Footnote (1.2.9)

Question 37

What happens if false statements are made on a licensing application?

Answer 37

Possible licence revocation and administrative penalties. ## Footnote (4.3.2)

Question 38

Differentiate independent agents and career agents.

Answer 38

Independent agents place business with multiple insurers career agents are typically contracted/exclusive with one insurer. ## Footnote (1.1.5.1–1.1.5.2)

Question 39

What is the 'disappearance and presumption of death' rule?

Answer 39

After a statutory period and evidence, courts may presume death to process claims. ## Footnote (3.2)

Question 40

Give two examples of unfair or deceptive acts agents must avoid.

Answer 40

Tied selling; churning/twisting; premium rebating; trafficking; inducing to insure; fronting; delaying delivery. ## Footnote (4.2.3; 4.2.3.1–4.2.3.7)

Question 41

Name two common riders in life policies.

Answer 41

Examples: waiver of premium, accidental death benefit, term rider, guaranteed insurability. ## Footnote (2.6.1.10)

Question 42

What distinguishes an Enduring Power of Attorney from a standard Power of Attorney?

Answer 42

An Enduring PoA continues to be effective during the grantor’s incapacity; a regular PoA may not. ## Footnote (1.2.4.1–1.2.4.2)

Question 43

Why might medical examinations be required in disability claims?

Answer 43

To confirm disability definitions, duration, and ongoing eligibility per policy. ## Footnote (3.7.2.2)

Question 44

Define 'successor policyholder.'

Answer 44

A person designated to become policyholder on the current policyholder’s death or incapacity per policy terms or law. ## Footnote (2.1.2.1)

Question 45

When may an applicant conduct insurance activities?

Answer 45

Only after holding a valid licence and having appropriate employment/agency contract. ## Footnote (4.3.2)

Question 46

Why are wills, estates, and successions relevant to life insurance agents?

Answer 46

They govern distribution of proceeds on death, interactions with intestacy, and executor authority. ## Footnote (1.2.7)

Question 47

Why are 'limitation periods' critical for claims?

Answer 47

They set deadlines to commence legal actions; missing them can bar recovery. ## Footnote (1.3.2)

Question 48

What does 'acting in good faith' encompass?

Answer 48

Duty of care, integrity, and competence in all dealings with clients and insurers. ## Footnote (4.2.1; 4.2.1.1–4.2.1.3)

Question 49

What makes an irrevocable beneficiary designation unique?

Answer 49

It cannot be changed without the beneficiary’s consent, and may restrict certain policy changes/assignments. ## Footnote (2.1.4.1)

Question 50

In the LLQP Ethics manual, what does the term 'life insurance' broadly cover in this module?

Answer 50

All categories of insurance of persons: life insurance, accident & sickness (living benefits), annuity contracts (seg funds, GIAs, immediate annuities) and supplemental pension plans. ## Footnote (Foreword – Note 1)

Question 51

What federal privacy statute should agents consider when handling personal information?

Answer 51

PIPEDA (Personal Information Protection and Electronic Documents Act). ## Footnote (1.5.1.1)

Question 52

How are seg fund/annuity death benefits handled pre‑ vs. post‑retirement?

Answer 52

Death before retirement: beneficiary may get market value or guarantee per contract; after retirement: depends on annuity/survivor options. ## Footnote (3.8.1–3.8.2)

Question 53

Why is forging or making a false document unethical and unlawful?

Answer 53

It’s fraud/forgery and violates statutes and conduct codes. ## Footnote (4.2.3.10)

Question 54

How do accidental vs. natural causes affect claims?

Answer 54

Benefits/coverage may differ; accidental death riders have specific causation/exclusion tests. ## Footnote (3.1.4.5)

Question 55

How does fraud/misrepresentation affect policy termination timelines?

Answer 55

Insurer can void/terminate for fraud or material misrepresentation within contestability rules; differing standards apply within/after two years. ## Footnote (2.4.1–2.4.1.3)

Question 56

What is the policy loan vs. collateral loan distinction?

Answer 56

Policy loan is from the insurer against CSV; collateral loan is from a third party with the policy assigned as security. ## Footnote (2.6.1.9)

Question 57

Give one difference between expiry/termination vs. surrender.

Answer 57

Surrender ends the policy voluntarily, often for cash value; expiry/termination occurs per contract terms or non‑payment. ## Footnote (2.3.2–2.3.3)

Question 58

What is a 'notice of claim' and why timely?

Answer 58

Initial notice to the insurer triggers claims handling timelines and documentation processes. ## Footnote (3.1.3)

Question 59

List common documents required for proof of claim in life insurance.

Answer 59

Death certificate, completed claim forms, proof of age/identity; probate docs when required. ## Footnote (3.1)