Module 1 Flashcards
(34 cards)
Succession
Mario and Francisca were married for 20 years and they have a son, Paulo, who is a teenager. Mario’s parents live in his hometown. Mario died recently due to a heart attack and did not leave a will. Which of the following statements about the devolution of Mario’s property is true?
Married: get 1/3
Descedant: get 2/3
If no descedants, ascedants can receive: mom/dad/sister/brother
If not succession:
Spouse: 2/3
Ascedants: 1/3
Which of the following statutes sets out the rules relating to the creation and administration of Québec chartered insurers and governs all insurers operating in Québec?
The Insurers Act sets out the rules relating to the setting up (creation) and administration of Québec chartered insurers and governs all insurers operating in Québec. It governs the issuance of licences to insurers and sets out the rules relating to the assets, reserves, investments and record-keeping of insurers.
Jackie who is 65 years old, is critically ill. She has to sell one of her ancestral properties but is unable to perform the sale due to her poor health. Jackie assigns her sister Beatrix as her power of attorney using a contract. Which of the following refers to the contract described in this scenario?
A mandate is a contract by which a person, the mandator, empowers another person, the mandatary, to represent him in the performance of a juridical act. This power and the document itself are also referred to as a “power of attorney.”
Khali works in a private ferry that operates between Québec and Newfoundland. His employer has established a supplemental pension plan for the workers. This pension plan will be governed by:
a) the Pension Benefits Standards Act.
b) Québec’s Supplemental Pension Plans Act.
c) the Bureau of Financial Establishments Act.
d) the Retraite Québec Pension Plans Act.
Any private business operating in an area of activity that falls under exclusive federal jurisdiction, such as a bank, railway, airline, shipping company or telecommunications company, that has established a supplemental pension plan is governed by the Pension Benefits Standards Act, 1985, not Québec’s Supplemental Pension Plans Act or any similar legislation of another province. The Pension Benefits Standards Act is the federal equivalent of the Supplemental Pension Plans Act (Québec). It applies to fields falling under federal jurisdiction. In the case of the above scenario, the ferry between Québec and Newfoundland will fall under federal jurisdiction and its pension plan will be governed by the Pension Benefits Standards Act.
Aditi and Matthieu have been living together in Québec, without a legal union, for the past three years and have a one-year-old son. Which of the following terms best describes their relationship?
a) De facto spouses
b) Civil union
c) Married couple
d) Independent partnership
Aditi and Matthieu are de facto spouses also known as common-law spouses. It is very important to remember that civil union under the Civil Code must not be confused with the notion of de facto spouses (or common-law spouses), that is, spouses who are not in a civil union or not married. Spouses in a civil union and de facto spouses (or common-law spouses) fall into
two very different categories.
Which of the following statements about the Canada pension plan (CPP) is true?
a) The CPP provides benefits to those who contribute to it, but not to their dependants.
b) The CPP is a federal plan applied in nine Canadian provinces and three territories.
c) All workers 21 years of age or over must contribute to the CPP when they hold a job in a Canadian province.
d) The CPP provides three types of benefits including retirement pension, spousal benefits, and employment benefits.
The Canada Pension Plan (CPP) is a federal plan applied in nine Canadian provinces and three territories. The CPP provides benefits to those who contribute to it as well as to their dependants. All workers 18 years of age or over must contribute to the CPP when they hold a job in a Canadian province or territory other than Québec. The CPP provides four types of benefits including retirement pension, disability benefits, survivor benefits, and post-retirement benefits.
Umed is a 20-years old resident of Ottawa and started working recently. He is required to contribute a portion of his salary to a plan that offers retirement funds, disability benefits, survivor benefits, and post-retirement benefits. To which of the following plans is Umed contributing?
a) The Canada Pension Plan (CPP)
b) The Parental Insurance Plan (PIP)
c) The Worker Compensation Plan (WCP)
d) The Employment Insurance Plan (EIP)
Umed is contributing to the Canada Pension Plan (CPP). In Canada, all workers 18 years of age or over must contribute to the CPP when they hold a job in a Canadian province or territory other than Québec. The CPP provides four types of benefits: offers retirement pensions, disability benefits, survivor benefits, and post-retirement benefits.
Joe and Lee are a civil union couple who wants to know the factors that could dissolve a civil union. All of the following dissolves a civil union, EXCEPT:
a) separation from bed and board.
b) death of a spouse.
c) a court order.
d) a joint declaration before a notary.
A civil union is dissolved when one of the spouses dies, a court orders the dissolution or the spouses make a joint declaration before a notary stating that their will to live together has been irretrievably undermined. Separation from bed and board does not dissolve a civil union.
Yonas, a truck driver, is injured in an accident while at work. He owns a private disability insurance contract with a benefit of $1,000. He receives a disability benefit of $1,100 from CNESST. What will be the benefit paid by the insurer after applying the integration clause?
a) $1,100
b) $900
c) $100
d) $0
The new benefits to be paid by the insurer after applying the integration clause will be $0 ($1,000 – $1,100 = – 100).
Insurer’s benefits: $1,000
CNESST benefits: $1,100
$1,000 – $1,100 = - $100
By applying the integration clause, the insurer can reduce the benefits paid. This is often the case with respect to benefits granted by various public agencies, such as the CNESST, the SAAQ, and Retraite Québec.
Which of the following information is NOT protected by the Act respecting the protection of personal information in the private sector (APPIPS)?
A legal person’s address
It is important to note that APPIPS applies to information allowing a natural person to be identified (name, address, including e-mail addresses, date of birth, social insurance number, etc.). Therefore, it does not protect information relating to businesses or legal persons.
Which of the following statements about the Personal Information Protection and Electronic Documents Act (PIPEDA) is FALSE?
a) It falls under federal jurisdiction.
b) It applies to the disclosure of personal information in the course of commercial activities.
c) It applies to businesses under provincial jurisdiction such as insurance companies.
d) It does not apply in Québec, regardless of the jurisdiction.
It would be wrong to think that the PIPEDA does not apply at all in Québec. In fact, the PIPEDA applies to the collection, use, and disclosure of personal information by a business under federal jurisdiction such as a bank, as well as the disclosure of personal information outside Québec. The PIPEDA falls under federal jurisdiction. Since January 1, 2004, the PIPEDA has applied to the collection, use, and disclosure of personal information in the course of commercial activities in a province, including businesses under provincial jurisdiction such as insurance companies and firms.
Which of the following principal obligations reiterated in FINTRAC include customer identification requirements, third-party determination, and determination of politically exposed persons and heads of international organizations?
a) Know-your-client requirements
b) Record-keeping requirements
c) Suspicious transaction and terrorist property reporting requirements
d) Compliance program requirements
Know-your-client requirements include customer identification requirements, third-party determination, and determination of politically exposed persons and heads of international organizations.
FINTRAC published guidance that applies to the insurance of persons representatives. This guidance reiterates the obligations imposed on insurance representatives by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and the regulations adopted thereunder.
Chris died when he was 75 years old. In his will, Chris gave the authority of settling the succession to his daughter, Renee. In this case, his daughter Renee is the:
Renee is the liquidator of the succession. The liquidator of the succession is the person appointed to liquidate the succession, whether it be legal or testamentary. The testator generally designates a liquidator, but if he has not done so or in the case of legal succession, the heirs perform this role together.
Ref: 1.1.1.7
Renee is the liquidator of the succession. The liquidator of the succession is the person appointed to liquidate the succession, whether it be legal or testamentary. The testator generally designates a liquidator, but if he has not done so or in the case of legal succession, the heirs perform this role together.
Ref: 1.1.1.7
Which of the following statements about the Québec Pension Plan (QPP) is true?
a) Temporary disability is not covered under the plan.
b) Workers must contribute to it if they earn over $6,500 per year.
c) Employers need not contribute to this plan.
d) A person must be 70 years of age or over to be eligible for the pension.
Temporary disability (or temporary incapacity to work) is not covered under the QPP. All workers must contribute to it if they earn over $3,500 per year and do not receive disability benefits. Employers must also contribute to this plan. A person must be 65 years of age or over to be eligible for the pension.
Finlay appointed his brother, Danner, as the liquidator of his succession and passed away a few months later. Finlay’s sons who are the heirs to his succession are not happy with Danner being the liquidator. In this case, what outcome can be expected?
a) Danner will be the liquidator as he was chosen by Finlay, the testator.
b) The court will designate a liquidator based on the preferences of Finlay’s heirs.
c) Finlay’s sons will perform the role of the liquidator together themselves.
d) Finlay’s sons together will appoint a person to perform the role of the liquidator.
Danner will be the liquidator as he was chosen by Finlay, the testator. The liquidator of the succession is the person appointed to liquidate the succession, whether it be legal or testamentary. The testator generally designates a liquidator, but if he has not done so or in the case of legal succession, the heirs perform this role together. They may appoint one or more persons from among themselves or a person who is not an heir of the deceased, in accordance with certain formalities. If the heirs cannot agree on the choice of a liquidator, the court designates one.
Logan is temporarily disabled due to a workplace injury. He owns an insurance contract with a clause that pays 85% of his net salary and deducts any excess received from other sources. Which of the following clauses is implemented by the insurer?
a) Limitation clause
b) Integration clause
c) Direct integration clause
d) Reduction clause
Logan’s insurance policy contains a limitation clause. The application of the limitation clause means that the total benefits received from one or more sources of income must not exceed a percentage of the salary stipulated in the contract. Any excess will be deducted from the benefits paid by the insurer.
Which of the following individuals should apply for the public prescription drug insurance plan?
a) Only those who are not eligible for a private plan
b) Only those who are 64 years of age or younger
c) Only those who are not covered under their spouses’ private plans
d) Only those who are members of a professional order
Only those who are not eligible for a private plan may register for the Public Prescription Drug Insurance Plan, except persons 65 years of age or over.
Akwasi is selling his house and Hong is the buyer. They sign an agreement to complete the sale and purchase of the house. Which of the following types of contract is employed in this scenario?
a) Synallagmatic
b) Gratuitous
c) Aleatory
d) Unilateral
In synallagmatic contracts, both parties obligate themselves to provide a benefit (money, property), such as in the sale of a house. They are also called bilateral contracts because both parties obligate to provide a benefit.
In gratuitous contracts, one of the parties obligates itself to the other for the benefit of the other without obtaining any advantage in return. In aleatory contracts, the scope of the obligations is uncertain at the time the contract is formed.
Louis turns 65 this year and is concerned with the income available to him during his retirement years. His pension plan with his past employer to which he has contributed for the last 35 years has to be drawn from if he is to meet his financial obligations in the coming years. Louis is concerned about a talk he had with his friend Jim, who told him that the maximum monthly benefit in 2021 is $773.29.
What would you advise Louis?
a) The maximum benefit in 2021 is $773.29 only if the retiree is age 60 in 2021.
b) Louis should seek part-time employment.
c) The provincial government supplements retirees’ income streams if they were born between December 31st, 1961 and January 1st, 1963.
d) A retiree’s last employer supplements their income until age 71 to an allowable maximum.
In 2021, the yearly maximum pensionable earnings threshold is $61,600. The maximum contribution for an employee is $3,427.90 ($6,855.80 for a self-employed worker).
The maximum monthly benefit in 2021 is $1,208.26 for a beneficiary aged 65. It increases to $1,715.73 if the pension begins at age 70 and decreases to $773.29 if the pension begins at age 60.
Reference: 1.2.2.6
The factor that differentiates the Québec Charter from the Canadian Charter is that, the Québec Charter:
a) applies to everyone, including private dealings.
b) applies only to dealings between the State and individuals.
c) excludes private dealings.
d) excludes natural persons.
It is important to remember that the Canadian Charter applies only to dealings between the State and individuals, while the Québec Charter applies to everyone (including private dealings).
Which of the following statements about civil unions is true?
a) Opposite-sex spouses cannot choose to be united in a civil union.
b) Civil union under the Civil Code is the same as de facto spouses.
c) All civil union spouses are governed by the legal regime of the community of property.
d) Individuals who are joined in a civil union are required to live together.
Individuals who are joined in a civil union are required to live together. Opposite-sex spouses can also choose to be united or be in a civil union. Civil union under the Civil Code must not be confused with the notion of de facto spouses (or common-law spouses), that is, spouses who are not in a civil union or not married. Future civil union spouses may choose one of the matrimonial regimes which exist in Québec. Those who do not make a choice are governed by the legal regime of partnership of acquests.
Tilly is divorced and she works as a food delivery agent. Her parents are deceased and she has no dependents. She dies in an accident while on her way to deliver food. In this case, who will receive her death benefit from the CNESST?
a) Tilly’s succession
b) Tilly’s ex-spouse
c) Tilly’s employer
d) No death benefit will be paid
Tilly’s succession will receive the death benefit from the CNESST.
The CNESST pays various types of benefits in the event of an employment injury. The spouse and dependants of a worker who has died as a result of an employment injury are entitled to a death benefit. If the worker has no spouse or dependants at the time of his death, his parents will be entitled to the death benefit. If both parents are deceased, the death benefit will be paid to the worker’s succession.
Zitao is 64 years old and is a permanent resident in Canada for the past 17 years. He recently retired and plans to apply for old age security (OAS) pension. Which of the following is true about Zitao’s OAS pension benefit?
Zitao must wait until he is 65 years old to start receiving the benefits.
OAS pension eligibility for a person living in Canada requires that the person must be 65 years of age or over, be a Canadian citizen or a legal resident at the time the Old Age Security pension application is approved, and have resided in Canada for at least 10 years after turning 18. For the July to September 2020 quarter, the maximum monthly pension was $613.53.
Which of the following statements about civil liability is true?
a) It is the obligation to repair the injury caused when certain conditions are met.
b) It is primarily intended to penalize a person for wrongful conduct.
c) It is contractual when a person, through no conscious fault, causes harm to another.
d) It is extra-contractual when a fault occurs while a contract is being performed.
Civil liability is the obligation to repair the injury caused when certain conditions are met. Note that civil liability is not intended to punish a person for wrongful conduct, but rather, to compensate the victim for the harm suffered. Liability is contractual when the victim and the author of the damage are bound by contract and the fault occurs while the contract is being performed. Civil liability is extra-contractual when a person, through his fault, causes harm to another.
