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LLQP Module 1 (Ethics & Professional Practice)
Questions with Detailed Verified Answers
The documents that constitute the entire agreement between the parties of an individual life
insurance contract Ans: ✓ ✓ ✓ 1. Application
2. Policy
3. Any document attached to the insurance policy when issued
4. Any amendment (also called rider, endorsement, or addendum) to the policy agreed to in writing
after the policy is issued.
(Refer to Section 2.6.1.1)
Insurance companies, also known as insurers, can be incorporated in two different ways. What are
the ways in which they can be incorporated? Ans: ✓ ✓ ✓ Federally or provincially.
Federally incorporated companies are able to carry on business across the country, and provincially
incorporated companies can only operate in the province in which they are incorporated.
(Refer to Section 4.1.1)
Which organization is an association of insurers conducting business in Canada that has prepared a
series of 18 guidelines for the guidance of its members to promote consistent practices and
standards for the life and health industry? Ans: ✓ ✓ ✓ The Canadian Life and Health Insurance
Association (CLHIA).
(Refer to Section 2.6.5)
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Which organization is responsible for determining the financial soundness of federally incorporated
life insurance companies? Ans: ✓ ✓ ✓ The Office of the Superintendent of Financial Institutions
(OSFI).
(Refer to Section 4.1.1)
What are the legal requirements for an agent to sell insurance in Canada? Ans: ✓ ✓ ✓ Be licensed
Enter into an agency contract
Practice the highest standards of conduct
Acquire errors-and-omissions (E&O) insurance.
(Refer to Chapter 1)
Which Act regulates insurers at the federal level? Ans: ✓ ✓ ✓ The Insurance Companies Act.
(Refer to Section 4.1.1)
Over the years, the insurance acts of all the common-law provinces have become very similar.
Collectively, the provincial acts are referred to as the Uniform Insurance Act. Québec, however, has
a different insurance act. Why? Ans: ✓ ✓ ✓ The provinces' laws are based on common law, and
therefore have a uniform act. Québec's laws, however, are based on civil law and so it has a
different insurance act.
(Refer to Section 1.2)
Which body is responsible for governing the marketing of life insurance policies? Ans: ✓ ✓ ✓ The
provincial insurance acts are responsible for the marketing of life insurance products and are
therefore regulated by provincial insurance regulators.
(Refer to Section 4.1.1)
Which law applies to the interpretation of a life insurance contract? Ans: ✓ ✓ ✓ The law of the
province or territory where the policy was contracted.
(Refer to Section 1.2)
Civil fault is an action or omission which causes someone loss or harm for which the wrongdoer is
liable. A breach of the privacy obligations of an agent could lead to a civil action against the agent in
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torts. A client claiming to be the victim of civil wrongdoing could initiate civil litigation against an
agent. How can insurance agents protect themselves against a claim against them under tort law?
Ans: ✓ ✓ ✓ Life insurance agents protect themselves from claims by carrying errors and omissions
(E&O) insurance.
Note: E&O insurance does not protect agents from intentional acts, misappropriations, fraud, or
criminal activities such as forgery.
(Refer to Section 4.2.5.1)
What is "Tort" (Tort Law)? Ans: ✓ ✓ ✓ A tort is a civil wrong that causes a claimant to suffer loss or
harm, resulting in legal liability for the person who commits the tortious act.
Assuris is a not-for-profit organization that protects Canadian policyholders if their life insurance
company should fail. How does Assuris provide protection for insurance policyholders? Ans: ✓ ✓ ✓
If a member insurance company becomes insolvent, Assuris facilitates the transfer of its policies to
a solvent company and ensures benefits are continued under the original terms of the policy.
According to provincial insurance legislation, what is considered the minimum age for individuals to
have the capacity to contract for insurance on their own behalf? Ans: ✓ ✓ ✓ 16 years
Provincial insurance legislation says that, for contracting a policy, a person 16 years of age or older
has the capacity to contract for insurance on its own behalf.
(Refer to Section 1.2.3)
What must be present in order for a contract to be enforceable? Ans: ✓ ✓ ✓ A contract must be
created by one or more parties with the shared intention of entering into a binding agreement.
(Refer to Section 1.3)
Emma was filling out her insurance application and accidentally filled in the year of her birth as
1988 instead of 1989. Is this considered a mistake or a misrepresentation, and what is the
difference? Ans: ✓ ✓ ✓ This would be a mistake.
Emma did not do this intentionally.
© Get it right 2025 Getaway - Stuvia US All rights reserved
LLQP Module 1 (Ethics & Professional Practice)
Questions with Detailed Verified Answers
The documents that constitute the entire agreement between the parties of an individual life
insurance contract Ans: ✓ ✓ ✓ 1. Application
2. Policy
3. Any document attached to the insurance policy when issued
4. Any amendment (also called rider, endorsement, or addendum) to the policy agreed to in writing
after the policy is issued.
(Refer to Section 2.6.1.1)
Insurance companies, also known as insurers, can be incorporated in two different ways. What are
the ways in which they can be incorporated? Ans: ✓ ✓ ✓ Federally or provincially.
Federally incorporated companies are able to carry on business across the country, and provincially
incorporated companies can only operate in the province in which they are incorporated.
(Refer to Section 4.1.1)
Which organization is an association of insurers conducting business in Canada that has prepared a
series of 18 guidelines for the guidance of its members to promote consistent practices and
standards for the life and health industry? Ans: ✓ ✓ ✓ The Canadian Life and Health Insurance
Association (CLHIA).
(Refer to Section 2.6.5)
© Get it right 2025 Getaway - Stuvia US All rights reserved
,Click here for more: Scholars nexus
Which organization is responsible for determining the financial soundness of federally incorporated
life insurance companies? Ans: ✓ ✓ ✓ The Office of the Superintendent of Financial Institutions
(OSFI).
(Refer to Section 4.1.1)
What are the legal requirements for an agent to sell insurance in Canada? Ans: ✓ ✓ ✓ Be licensed
Enter into an agency contract
Practice the highest standards of conduct
Acquire errors-and-omissions (E&O) insurance.
(Refer to Chapter 1)
Which Act regulates insurers at the federal level? Ans: ✓ ✓ ✓ The Insurance Companies Act.
(Refer to Section 4.1.1)
Over the years, the insurance acts of all the common-law provinces have become very similar.
Collectively, the provincial acts are referred to as the Uniform Insurance Act. Québec, however, has
a different insurance act. Why? Ans: ✓ ✓ ✓ The provinces' laws are based on common law, and
therefore have a uniform act. Québec's laws, however, are based on civil law and so it has a
different insurance act.
(Refer to Section 1.2)
Which body is responsible for governing the marketing of life insurance policies? Ans: ✓ ✓ ✓ The
provincial insurance acts are responsible for the marketing of life insurance products and are
therefore regulated by provincial insurance regulators.
(Refer to Section 4.1.1)
Which law applies to the interpretation of a life insurance contract? Ans: ✓ ✓ ✓ The law of the
province or territory where the policy was contracted.
(Refer to Section 1.2)
Civil fault is an action or omission which causes someone loss or harm for which the wrongdoer is
liable. A breach of the privacy obligations of an agent could lead to a civil action against the agent in
© Get it right 2025 Getaway - Stuvia US All rights reserved
, Click here for more: Scholars nexus
torts. A client claiming to be the victim of civil wrongdoing could initiate civil litigation against an
agent. How can insurance agents protect themselves against a claim against them under tort law?
Ans: ✓ ✓ ✓ Life insurance agents protect themselves from claims by carrying errors and omissions
(E&O) insurance.
Note: E&O insurance does not protect agents from intentional acts, misappropriations, fraud, or
criminal activities such as forgery.
(Refer to Section 4.2.5.1)
What is "Tort" (Tort Law)? Ans: ✓ ✓ ✓ A tort is a civil wrong that causes a claimant to suffer loss or
harm, resulting in legal liability for the person who commits the tortious act.
Assuris is a not-for-profit organization that protects Canadian policyholders if their life insurance
company should fail. How does Assuris provide protection for insurance policyholders? Ans: ✓ ✓ ✓
If a member insurance company becomes insolvent, Assuris facilitates the transfer of its policies to
a solvent company and ensures benefits are continued under the original terms of the policy.
According to provincial insurance legislation, what is considered the minimum age for individuals to
have the capacity to contract for insurance on their own behalf? Ans: ✓ ✓ ✓ 16 years
Provincial insurance legislation says that, for contracting a policy, a person 16 years of age or older
has the capacity to contract for insurance on its own behalf.
(Refer to Section 1.2.3)
What must be present in order for a contract to be enforceable? Ans: ✓ ✓ ✓ A contract must be
created by one or more parties with the shared intention of entering into a binding agreement.
(Refer to Section 1.3)
Emma was filling out her insurance application and accidentally filled in the year of her birth as
1988 instead of 1989. Is this considered a mistake or a misrepresentation, and what is the
difference? Ans: ✓ ✓ ✓ This would be a mistake.
Emma did not do this intentionally.
© Get it right 2025 Getaway - Stuvia US All rights reserved
