Ethics & Professional Practice

Question 1

Insurance law is based on

Answer 1

The canadian constitution, derived from the constitution act 1982

Question 2

Is insurance law a federal or provincial matter ?

Answer 2

Insurance law is a provincial matter

Question 3

Insurance law is based on :

Answer 3

Common Law and Legislation and Regulations

Question 4

What is common law?

Answer 4

Common is based on decisions of courts, it covers principles applicable to contracts, torts, property, trusts and agency

Question 5

Where does Common Law apply?

Answer 5

Applies everywhere in Canada except Quebec (civil code)

Question 6

Insurance law is primarily enacted through:

Answer 6

Legislation

Question 7

What is a Power of Attorney (PoA)

Answer 7

A legal document appointing another person (attorney) to make financial and legal decisions on your behalf

Question 8

When does a Power of Attorney end?

Answer 8

When the grantor becomes mentally incapable

Question 9

What is an Enduring Power of Attorney ?

Answer 9

An enduring Power of Attorney continues even after the grantor becomes mentally incapable

Question 10

What does Family law cover?

Answer 10

Family law covers the distribution of assets in the event of marriage or relationship breakdown (under provincial Jurisdiction)

Question 11

Testate

Answer 11

Dying with a valid will

Question 12

Intestate

Answer 12

Dying without a valid will

Question 13

What does PIPEDA stand for

Answer 13

Personal Information Protection and Electronic Documents Act

Question 14

Where should suspected money laundering and terrorist financing be reported?

Answer 14

Financial Transactions and Analysis Centre of Canada (FINTRAC)

Question 15

Report cash transactions of :

Answer 15

10k or more

Question 16

Report deposits

Answer 16

Greater than 100k

Question 17

Report conducted or suspicious transactions within ___ days

Answer 17

30

Question 18

Who represents a single insurer and are bound by contractual stipulations or employment arrangements of a single mga or insurance marketing entitty

Answer 18

Captive agents

Captive agents represent a single insurer or are bound by contractual stipulations or employment arrangements to represent a single mga or insurance marketing entity

1.1.5.2 Captive Agents in textbook

Question 19

What is the trust type that is established during the life of the settlor and is between living people?

Answer 19

Inter-vivos

Trusts established during the life of the settlor are called “inter-vivos” trusts (between living people)

1.2.8 Trust and trustees in textbook

Question 20

What is the collection of property and property rights that the deceased owned referred to as ?

Answer 20

Estate

1.2.7 Wills, Estates, and successions in textbook

Question 21

Who facilitates business between agents, their clients, and insurers?

Answer 21

Managing general agent

1.1.6 in textbook

Question 22

What is the law the Privacy Commissioner has authority under which is the federal legislation governing how the federal government and its agencies handle personal information?

Answer 22

Privacy act

The commissioner has authority under 2 laws. The first one is the privacy act, which is federal legislation governing how the federal government and its agencies handle personal information.

1.5.1 Privacy Act in textbook

Question 23

Which insurance covers loss of health in several ways?

Answer 23

Accident & sickness

Accident and sickness insurance may cover loss of health in several ways

1.1.2 accident & sickness insurance

Question 24

Which one has most of the property rights of individuals, can enter into contracts, buy, sell and own all kinds of properties?

Answer 24

Corporations

Corporations effectively have most of the property rights of individuals and so can enter into contracts, and buy, sell, and own all kinds of property.

1.2.2.3 Legal Person (corporation) in textbook

Question 25

Which Insurance covers the risk of one or more persons dying?

Answer 25

Life 1.1.1 Life insurance in textbook

Question 26

In which event does the value of the policy become subject for the valuation and division of property?

Answer 26

Divorce 1.2.6 Divorce and separation in textbook

Question 27

What is the person or corporation, delegating the authority called?

Answer 27

Principal 1.1.4 Agency relationship in textbook

Question 28

What is the law that commercial electronic messages to clients must have prescribed consent from the recipient and a mechanism to unsubscribe immediately and no later than 10 business days?

Answer 28

Anti-spam legislation CASL prohibits the sending of commercial electronic messages (CEM) if the sender does not first have the recipient’s consent. The CEM must have prescribed consent and a mechanism to unsubscribe. A request to unsubscribe must be honoured immediately and no later than within 10 business days. 1.6.4 Anti-spam legislation in textbook

Question 29

What is a provincially sponsored plan in which a resident of the province and his/her passengers are reimbursed by the policyholder’s own insurance company without proof of fault in an accident?

Answer 29

No-fault automobile insurance No fault automobile insurance is a provincially sponsored plan with which a resident of the province (the policyholder) and his/her passengers are not only reimbursed by the policyholders own insurance company without proof of fault but also restricted in the right to seek recovery through the legal system for losses caused by other parties. 1.4.2 Provincially or Territorially sponsored or facilitated programs

Question 30

What is the timeframe during which a court action must be started or the right to sue is lost forever?

Answer 30

A limitation period is a timeframe during which a court action must be started or the right to sue is lost forever. 1.3.2 Limitation periods

Question 31

What type of protection is the reason agents advise clients to name direct beneficiaries, rather than their estate?

Answer 31

Asset protection 1.2.9 Bankruptcy

Question 32

Which financial plan is funded by contributions, and not by the government through duties and taxes?

Answer 32

Canada Pension Plan (CPP) 1.4.1.1 Canada Pension Plan (CPP) and disability in textbook

Question 33

When was the module statute that the provinces and territories based their respective insurance legislation created?

Answer 33

1920 While each province has its own legislation, the provinces and territories have all based their respective insurance legislation on a model statute created in the 1920’s cooperation with a body called the “Uniform Law Conference” 1.2 General legal principles applicable to a life insurance agent in textbook

Question 34

Which one is described as a corporation or a partnership that holds a license from a regulator or several regulators?

Answer 34

Insurance agency 1.1.7 Agency in textbook

Question 35

Which law aims at detecting individuals and corporations involved in criminal activity and preventing them from getting illegally obtained money into the banking system

Answer 35

Proceeds or Crime and Terrorist financing act This important Canadian law aims at detecting individuals and corporations involved in criminal activity and preventing them from getting their illegally obtained money into the banking system. 1.6.2 Proceeds of Crime (Money laundering) and Terrorist financing act (PCMLTFA) in textbook

Question 36

Which plan is to provide a specified package of benefits to all members of society with the end goal of providing financial risk protection, access to health services and improved health outcomes?

Answer 36

Universal health care and drug plan 1.4.2 provincially or territorially sponsored or facilitated programs in textbook

Question 37

Which non-contributory financial plan is considered taxable income for the pensioner?

Answer 37

Old Age Security (OAS) 1.4.1.2 Old Age Security (OAS) and Guaranteed Income Supplement (GIS)

Question 38

What is a relationship of delegated authority called?

Answer 38

Agency 1.1.4 Agency relationship

Question 39

In which province did the FRSA replace FSCO on june 8th, 2019 as the supervisors of insurance companies

Answer 39

Ontario 1.1.8 Regulation of insurance and licensing

Question 40

What do the benefit companies try to prevent when they apply “coordination of benefits”?

Answer 40

Overpayment To prevent overpayment, the benefit companies apply “coordination of benefits” so that one benefit plan pays first, while the second plan pays only the unpaid balances remaining 1.4 Public insurance and retirement regimes

Question 41

What does a policyholder agree to make a designation that must be filed with the head office of the insurer?

Answer 41

Irrevocable A policyholder may agree to make a designation irrevocable. Such a declaration must be filed with the head office of the insurer in order to become irrevocable 2.1.4.1 Irrevocable beneficiary designations

Question 42

What does long-term care (LTC) cover the risk of?

Answer 42

Provides a benefit when the insured person cannot safely and independently perform a number of daily living activities, or must be constantly supervised due to deterioration of mental functions 2.6.3.5 Long-term care (LTC)

Question 43

Unlike life insurance, what must be included in every individual accident and sickness policy to be valid?

Answer 43

Statutory terms Also, unlike life insurance, there are statutory terms and conditions that must be included in every individual accident and sickness policy for the policy to be valid. 2.5.3.10 Statutory conditions