Ethics Chapter 1 Flashcards
(22 cards)
What is common law and where does it apply in Canada?
Law based on court decisions; applies in all provinces except Quebec.
What legal system does Quebec use and how is it different?
Civil law, based on laws adopted through legislation.
What happens to a will after a divorce in terms of the former spouse?
The will remains valid, but the former spouse is treated as if deceased—no longer entitled to assets.
What is an inter-vivos trust?
A trust established during the settlor’s lifetime.
What is a testamentary trust?
A trust triggered upon the settlor’s death.
What is a PoAPC and how is it different from a living will?
PoAPC names someone to act on your behalf; a living will outlines care wishes.
Why is a corporation considered a ‘legal person’?
It can enter contracts, sue or be sued, separate from its owners.
What does an actuary do in insurance?
Analyzes stats to assess risk and set premiums; must belong to Canadian Institute of Actuaries.
What is a Managing General Agent (MGA)?
An intermediary who helps agents place insurance, handle business, pool commissions, and train agents.
What does the Canadian Anti-Spam Legislation (CASL) regulate?
Prohibits sending CEMs without consent, requires unsubscribe option, and mandates processing unsubscribe requests within 10 business days.
How do property rights differ between common-law and traditional marriages?
Common-law: no presumed division of assets; traditional: division is presumed.
Can support payments be required in common-law relationships?
Yes, support (e.g., child/spousal) may be required if the relationship ends.
What is the DNCL and who must comply?
National Do Not Call List; agents and their hired telemarketers must comply.
Can agents call existing clients under DNCL rules?
Yes, if the client has given specific permission or is an existing client.
What is the difference between a natural person and a legal person?
Natural = human with legal capacity; Legal = corporation with separate legal rights.
What can a dependent do if not properly provided for in a will?
Make a claim against the estate for support, e.g., children needing support post-death.
What is a Power of Attorney (POA)?
A document granting authority to act on someone’s behalf; ends with incapacity unless ‘enduring’.
Who qualifies for the Guaranteed Income Supplement (GIS)?
OAS recipients in Canada with low income; GIS is tax-free.
Which province’s law applies to insurance and estate matters?
Insurance: province where policy issued; Estate: province where policyholder now resides.
What does a worker give up in exchange for workers’ compensation?
The right to sue the employer. Compensation is no-fault and provincially managed.
What is Dependents Relief Legislation?
Allows certain family members—like a spouse, child, or sometimes even a financially dependent adult—to challenge a will or estate distribution if they feel they haven’t been adequately provided for.
William died with three assets:
Life insurance with his estate listed as beneficiary
TFSA with his spouse as beneficiary
RRSP with his neighbour as beneficiary
Which of these assets would not be disposed of under the terms of his will? Explain why.
TFSA and RRSP would not be disposed of under the will.
➡️ They both have named beneficiaries, so they bypass the estate and go directly to the named person.
