Ethics & Professional Practice Flashcards
Insurance law is based on
The canadian constitution, derived from the constitution act 1982
Is insurance law a federal or provincial matter ?
Insurance law is a provincial matter
Insurance law is based on :
Common Law and Legislation and Regulations
What is common law?
Common is based on decisions of courts, it covers principles applicable to contracts, torts, property, trusts and agency
Where does Common Law apply?
Applies everywhere in Canada except Quebec (civil code)
Insurance law is primarily enacted through:
Legislation
What is a Power of Attorney (PoA)
A legal document appointing another person (attorney) to make financial and legal decisions on your behalf
When does a Power of Attorney end?
When the grantor becomes mentally incapable
What is an Enduring Power of Attorney ?
An enduring Power of Attorney continues even after the grantor becomes mentally incapable
What does Family law cover?
Family law covers the distribution of assets in the event of marriage or relationship breakdown (under provincial Jurisdiction)
Testate
Dying with a valid will
Intestate
Dying without a valid will
What does PIPEDA stand for
Personal Information Protection and Electronic Documents Act
Where should suspected money laundering and terrorist financing be reported?
Financial Transactions and Analysis Centre of Canada (FINTRAC)
Report cash transactions of :
10k or more
Report deposits
Greater than 100k
Report conducted or suspicious transactions within ___ days
30
Who represents a single insurer and are bound by contractual stipulations or employment arrangements of a single mga or insurance marketing entitty
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
What is the trust type that is established during the life of the settlor and is between living people?
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
What is the collection of property and property rights that the deceased owned referred to as ?
Estate
1.2.7 Wills, Estates, and successions in textbook
Who facilitates business between agents, their clients, and insurers?
Managing general agent
1.1.6 in textbook
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?
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
Which insurance covers loss of health in several ways?
Accident & sickness
Accident and sickness insurance may cover loss of health in several ways
1.1.2 accident & sickness insurance
Which one has most of the property rights of individuals, can enter into contracts, buy, sell and own all kinds of properties?
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
Which Insurance covers the risk of one or more persons dying?
Life
1.1.1 Life insurance in textbook
In which event does the value of the policy become subject for the valuation and division of property?
Divorce
1.2.6 Divorce and separation in textbook
What is the person or corporation, delegating the authority called?
Principal
1.1.4 Agency relationship in textbook
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?
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
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?
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
What is the timeframe during which a court action must be started or the right to sue is lost forever?
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
What type of protection is the reason agents advise clients to name direct beneficiaries, rather than their estate?
Asset protection 1.2.9 Bankruptcy
Which financial plan is funded by contributions, and not by the government through duties and taxes?
Canada Pension Plan (CPP)
1.4.1.1 Canada Pension Plan (CPP) and disability in textbook
When was the module statute that the provinces and territories based their respective insurance legislation created?
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
Which one is described as a corporation or a partnership that holds a license from a regulator or several regulators?
Insurance agency
1.1.7 Agency in textbook
Which law aims at detecting individuals and corporations involved in criminal activity and preventing them from getting illegally obtained money into the banking system
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
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?
Universal health care and drug plan
1.4.2 provincially or territorially sponsored or facilitated programs in textbook
Which non-contributory financial plan is considered taxable income for the pensioner?
Old Age Security (OAS)
1.4.1.2 Old Age Security (OAS) and Guaranteed Income Supplement (GIS)
What is a relationship of delegated authority called?
Agency
1.1.4 Agency relationship
In which province did the FRSA replace FSCO on june 8th, 2019 as the supervisors of insurance companies
Ontario
1.1.8 Regulation of insurance and licensing
What do the benefit companies try to prevent when they apply “coordination of benefits”?
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
What does a policyholder agree to make a designation that must be filed with the head office of the insurer?
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
What does long-term care (LTC) cover the risk of?
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)
Unlike life insurance, what must be included in every individual accident and sickness policy to be valid?
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
