LLQP Ethics & Professional Practice (Civil Code / Québec) Syllabus — Learning Objectives by Topic

Use this syllabus as your checklist for the LLQP Ethics & Professional Practice (Civil Code / Québec) module.

Official sources:

• CSI LLQP curriculum: https://www.csi.ca/en/learning/courses/llqp/curriculum
• CSI LLQP exam credits: https://www.csi.ca/en/learning/courses/llqp/exam-credits

Official topic weightings (Civil Code / Québec)

What’s covered

• Integrate into practice the legal aspects of insurance and annuity contracts (Civil Code / Québec) (60%)
• Integrate into practice the rules governing the activities of representatives (Civil Code / Québec) (40%)

Integrate into practice the legal aspects of insurance and annuity contracts (Civil Code / Québec) (60%)

1.1 Sources of law governing insurance (Civil Code / Québec) — sources of law & legal principles

• Explain how insurance law in Québec is shaped by both legislation (statutes/regulations) and the Civil Code of Québec (as interpreted by courts), and why representatives must follow both.
• Identify the main sources of law that can affect an insurance of persons transaction (e.g., provincial insurance legislation, contract law, tort law, privacy law, criminal law, anti-spam rules, AML/ATF rules).
• Distinguish between statutes, regulations, regulatory guidance, and industry guidelines (e.g., CLHIA guidelines) and explain how each influences day-to-day practice.
• Describe the constitutional division of powers relevant to insurance (provincial authority over insurance business vs federal authority over certain related areas such as criminal law and AML/ATF).
• Define legal persons (natural persons vs corporations/partnerships) and explain how legal capacity affects a person’s ability to enter into an insurance contract.
• Explain age of majority and how statutory rules for minors (including the “16-year-old rule” in some jurisdictions) can affect capacity to apply for life/A&S insurance.
• Describe how marriage, marriage contracts, and family property regimes can affect policy ownership, beneficiary designations, and division of assets.
• Explain how separation/divorce can affect beneficiary status, ownership rights, and estate planning objectives when an ex-spouse is named on a policy or registered plan.
• Differentiate “married spouse” from “common-law spouse” concepts and explain how this can influence succession/estate planning and benefit expectations.
• Describe the basic purpose of wills and probate/estate administration and why an insurer may request proof of authority from an estate trustee/executor.
• Explain the concept of a trust and common insurance uses (e.g., naming a trustee for minor beneficiaries; insurance held in trust).
• Explain the legal concept of agency (principal–agent relationship) and how an agent’s authority is created and limited by contract and law.
• Describe powers of attorney (POA) and enduring/continuing POA concepts and how they affect who can request policy changes for an incapable policyholder.
• Explain basic contract law elements (offer, acceptance, consideration, capacity, legality, intention) and apply them to insurance contract formation.
• Explain the duty of utmost good faith in insurance and how it supports accurate disclosure and fair dealing by both insurer and applicant.
• Apply tort concepts (negligence, negligent misrepresentation) to insurance advice, including how poor fact-finding or incomplete disclosure can create liability.
• Explain limitation periods (time limits for legal actions) and why timely documentation, disclosure, and claims follow-up matter.
• Describe key privacy obligations under PIPEDA and/or applicable provincial private-sector privacy laws when collecting, using, and disclosing client information.
• Describe how human rights legislation can affect underwriting and sales practices (e.g., avoiding discriminatory statements or actions and understanding protected grounds).
• Describe why insurance professionals must understand public insurance and pension plans (e.g., EI, CPP, OAS/GIS, provincial health/drug plans, workers’ compensation) and how coordination with private benefits can affect clients.

1.2 Parties involved in the contract — roles, rights & special cases

• Define the roles of insurer, policyholder/owner, insured (life insured), and beneficiary in an individual life insurance contract.
• Distinguish between the policyholder/owner and the insured and explain why these roles can be held by different people or entities.
• Explain the rights typically associated with policy ownership (e.g., changing beneficiaries, assigning the policy, borrowing against cash values, surrendering).
• Define contingent policyholder/owner and contingent beneficiary and describe when each is used.
• Differentiate revocable vs irrevocable beneficiaries and describe how irrevocability can limit owner actions (e.g., beneficiary changes, assignments).
• Explain how multiple beneficiaries and contingent beneficiaries can be structured (e.g., percentages, primary vs contingent) and how this affects proceeds distribution.
• Explain the concept of beneficiary rights at claim time and why proceeds often pass outside the estate when a beneficiary is named.
• Describe special cases involving policyholders/beneficiaries who are minors and how guardians or trustees may be required.
• Describe the role of a trustee (including trustee for minor beneficiaries) and what an insurer typically needs to pay proceeds to a trust/trustee.
• Explain the difference between an authorized representative and an attorney under a power of attorney (POA), and how to verify authority.
• Explain how corporate policy ownership changes the parties involved (corporation as owner/beneficiary; individual as insured) and impacts instructions and documentation.
• Distinguish parties in a group insurance arrangement (insurer, plan sponsor/policyholder, administrator, member/certificate holder, insured dependent).
• Explain the purpose and legal role of the group certificate/booklet and how it relates to the master contract.
• Describe the parties in an annuity contract (owner, annuitant, payee/annuity grantee, beneficiary) and how these roles differ from life insurance.
• Explain who receives benefits in critical illness insurance and how beneficiary features can differ from traditional life insurance death benefits.
• Explain who can provide instructions for changes (beneficiary change, ownership change, withdrawals) and why verifying legal authority protects clients and insurers.
• Explain the relationship between insurable interest and the parties to the contract, including when insurable interest is required.
• Describe how assignment (absolute vs collateral) changes the parties’ rights, especially rights to proceeds and ability to change beneficiaries.
• Explain how premium payors (who pays) can differ from policy owners, and why documentation and disclosure are important when third parties pay premiums.
• Apply a scenario to identify the correct party/parties to contact for consent, signatures, or proof of authority in a policy change or claim situation.

1.3 Contract formation, taking effect, reinstatement & termination — individual, group & annuities

• Describe the typical steps in forming an individual life insurance contract (application, underwriting, acceptance, policy issue, delivery).
• Explain the difference between the insurance application and the insurance policy and why accuracy and completeness in the application is critical.
• Explain the role of the first premium payment and how non-payment or late payment can affect the start of coverage.
• Explain temporary insurance/covering notes (conditional receipt) and the conditions that must be met for temporary coverage to apply.
• Determine when coverage takes effect based on common conditions (policy issued, delivery, premium paid, insurability unchanged) and why effective dates matter.
• Explain insurable interest and when it must exist (e.g., at contract formation) for life insurance.
• Explain the duty to disclose and the impact of changes in insurability between application and policy delivery (e.g., new diagnosis, risky activity).
• Define material misrepresentation and concealment and describe potential consequences (e.g., policy voidable, claim denial) when information is withheld or falsified.
• Explain the meaning of “utmost good faith” as it relates to both the applicant and insurer during underwriting and contract administration.
• Distinguish absolute assignment from collateral assignment and explain common uses (e.g., collateral assignment for a loan).
• Explain how cancellation/termination and the grace period work in principle and how a lapse can occur.
• Explain reinstatement (what it is, why it is needed, and common requirements such as evidence of insurability and premium arrears).
• Describe the purpose of group insurance and explain how group eligibility and the definition of the group affect contract formation.
• Distinguish major types of group insurance (workplace, association/professional, group creditor) and how distribution/administration differs.
• Explain how group coverage is formed (master application/acceptance, issuance of certificate/booklet, enrollment) and how dependents are added.
• Explain how laws can apply based on the member’s province/territory of residence in multi-jurisdiction group plans.
• Explain renewal and termination of a group master policy and the implications for members’ coverage.
• Explain conversion rights when group life insurance terminates and why timely notice and action matter.
• Explain how a change of insurer in a group plan can affect member coverage continuity and what “incidence of change of insurer” means in practice.
• Explain formation and termination basics for annuity contracts (immediate vs deferred; accumulation vs payout) and how some annuities can be deemed life insurance for legal purposes.

1.4 Insurance & annuity contract provisions — statutory conditions, exclusions, riders & key clauses

• Identify common general provisions found in life insurance policies (e.g., premium, grace, reinstatement, ownership, beneficiary, incontestability) and describe why they matter.
• Explain the concept of statutory (mandatory) conditions/provisions and how they interact with policy wording in Québec.
• Distinguish exclusions, limitations, and reductions and give examples of how each can affect benefits.
• Differentiate legal exclusions (required by law) from contractual exclusions (policy wording) and explain why agents must disclose key exclusions clearly.
• Explain pre-existing condition limitations commonly found in accident and sickness contracts and how they affect claims eligibility.
• Explain the purpose and typical effect of the suicide clause and the contestability/incontestability concept.
• Explain misstatement-of-age provisions and how insurers adjust benefits or premiums when an error is discovered.
• Explain how riders/amendments modify coverage and why documenting and delivering riders correctly matters.
• Define cash surrender value (CSV) and describe when CSV exists and what policy actions may be available because of it.
• Explain policy loans and how they can affect cash values, interest charges, and the net amount payable at death.
• Explain the relationship between assignments and beneficiary rights, including how a collateral assignee may have priority to proceeds.
• Describe what information a group insurance certificate/booklet typically includes and why it matters for member understanding.
• Explain why group statutory conditions and plan administration provisions can be important in disputes or claims.
• Describe key contractual provisions unique to disability insurance (definition of disability, elimination period, benefit period) and how they affect claims.
• Describe key provisions unique to drug/health plans (coordination of benefits, eligible expenses, dispensing limits) and how multi-jurisdiction drug coverage can differ.
• Describe key contractual provisions that may appear in critical illness and long-term care contracts (covered conditions, survival period, premium refund options) and how they affect benefits.
• Describe key provisions in AD&D contracts (covered losses, time limits, exclusions) and how they affect claim outcomes.
• Explain common withdrawal and surrender rights in annuity/segregated fund contracts and why fees/market value adjustments matter for disclosure.
• Identify registered contract structures (RRSP, TFSA, RRIF, LIRA, LIF) as contexts for annuity/insurance products and explain why registration status affects contract administration and beneficiary designations.
• Explain the role of industry guidelines (e.g., CLHIA guidelines including CAP guidance) in shaping professional practice alongside legal requirements.

1.5 Beneficiary designation & exemption from seizure — succession, minors, trusts & creditor protection

• Explain the purpose of beneficiary designation and how it affects who receives proceeds and whether proceeds flow through the estate.
• Identify who generally has the legal authority to name or change a beneficiary and how ownership and irrevocable beneficiary status affect that authority.
• Explain the role of a power of attorney (POA) in beneficiary designations and why insurers require proof of authority and scope before accepting instructions.
• Describe common ways to designate a beneficiary (policy form, endorsement, plan administrator forms) and why proper filing with the insurer/administrator matters.
• Explain how contingent beneficiaries and multiple beneficiaries work and how proceeds may be split (e.g., equal shares vs specified percentages).
• Explain the legal effect of beneficiary designation on succession/estate planning, including situations where proceeds bypass probate.
• Explain how conjugal breakdown (separation/divorce/annulment) can affect a spousal beneficiary designation and why policy reviews after relationship changes are important.
• Explain considerations when a minor is named as beneficiary, including why a trustee for minors may be needed to receive and manage proceeds.
• Describe the role and responsibilities of a trustee for minor beneficiaries and what information should be captured to reduce claim delays.
• Explain how beneficiary designation can interact with incapacity/disability of a beneficiary and when a trust arrangement may be appropriate.
• Explain how a beneficiary can be revoked/changed and why documentation and timing matter (e.g., changes not effective until received/recorded).
• Explain the concept of exemption from seizure (creditor protection) that may arise from certain beneficiary designations and why it is not absolute.
• Distinguish creditor protection concepts under insurance law from bankruptcy/insolvency rules, and explain why advisors must avoid guaranteeing protection.
• Describe beneficiary designation features in accident and sickness insurance (including when a beneficiary can be designated) and how living benefits differ from death benefits.
• Explain how certain registered plans and annuity arrangements may receive creditor protection under bankruptcy/insolvency rules and why plan type and beneficiary can matter.
• Explain how family property division rules can interact with insurance proceeds or pension assets, affecting who ultimately benefits.
• Explain exemption-from-seizure concepts in supplemental pension plans and the idea of “locked-in” retirement assets.
• Explain death benefit rules in locked-in retirement arrangements (e.g., LIRA/LIF) at a high level and how beneficiary designation can affect payout.
• Explain how disputes between claimants/beneficiaries can delay payment (e.g., competing claims) and how an insurer may respond (e.g., interpleader).
• Apply a scenario to select an appropriate beneficiary/estate/trust structure and identify the documentation needed to implement it correctly.

1.6 Claims & payment of benefits — life, A&S and annuities (proceeds, timelines, disputes)

• Describe the steps in a standard life insurance claim process from notice of claim to payment of proceeds.
• Identify common documents required for a life insurance claim (e.g., claim forms, death certificate, medical information, proof of identity).
• Explain the role of the agent during the claims process (assist with forms, set expectations, maintain confidentiality, avoid unauthorized advice).
• Explain how timelines and “delay to pay benefits” concepts can arise and why complete documentation reduces delays.
• Explain how contestability periods and policy exclusions can affect claim investigation and outcomes.
• Explain how the suicide clause can affect claims and why accurate disclosure and policy review at delivery matter.
• Explain how misrepresentation or non-disclosure discovered at claim time can affect benefits and why accurate applications are essential.
• Describe the “attempt on the insured’s life” situation (e.g., beneficiary involvement) and how legal restrictions can affect who receives proceeds.
• Explain settlement options for life insurance proceeds (e.g., lump sum, interest option, annuity settlement) and when beneficiaries might choose each.
• Explain, at a high level, how taxation may apply to different benefit payments (e.g., life death benefit vs certain living benefits), and why advisors should avoid definitive tax advice without facts.
• Describe the notice-of-claim and proof-of-loss concepts for disability insurance claims and why ongoing proof may be required.
• Explain key DI claim documentation (e.g., attending physician statement, employer statement) and the impact of incomplete or inconsistent information.
• Explain key claims considerations for critical illness (diagnosis confirmation, survival period where applicable, exclusions) at a high level.
• Explain key claims considerations for drug/health benefits, including coordination of benefits and explanation-of-benefits statements.
• Explain key claims considerations for AD&D benefits (covered loss definitions, time limits, exclusions) and how they differ from life insurance death benefits.
• Explain claims and payments for payout annuities, including how guarantee periods affect payments when the annuitant dies early.
• Explain how annuity guarantee periods and beneficiaries/estate interact (who receives remaining payments).
• Describe death benefit processes in supplemental pension plans before retirement (accumulation stage) and after retirement (payout stage) at a high level.
• Explain why estate documentation may be required when the estate is claimant/beneficiary (executor/administrator proof) and how probate can affect timing.
• Apply a scenario to decide the most appropriate next step when a claim is delayed, disputed, or missing key documentation, while maintaining professional and ethical boundaries.

Integrate into practice the rules governing the activities of representatives (Civil Code / Québec) (40%)

2.1 Organizations that protect consumers — regulators, CISRO/CCIR, Assuris, FINTRAC, OLHI

• Explain the role of provincial/territorial insurance regulators in consumer protection, licensing, market conduct, and discipline of insurance intermediaries.
• Describe how regulators can supervise and enforce compliance (e.g., audits, investigations, sanctions) and why accurate records support compliance.
• Explain the purpose of CISRO in harmonizing LLQP curriculum and supporting consistent licensing standards across jurisdictions.
• Explain the purpose of CCIR and how it supports coordination among provincial/territorial insurance regulators, including conduct-of-business expectations.
• Describe the role of industry associations such as CLHIA in issuing guidelines that can influence market conduct and product administration.
• Explain the role of Assuris and the general concept of policyholder protection in the event of an insurer insolvency.
• Explain FINTRAC’s role in Canada’s AML/ATF regime and the types of obligations that can apply to insurance intermediaries (e.g., reporting, recordkeeping).
• Explain the role of the Ombudsman for Life and Health Insurance (OLHI) in dispute resolution and how it differs from a regulator.
• Describe the typical complaint escalation path: insurer internal complaints process → independent dispute resolution (e.g., ombudsman) → regulator (as applicable).
• Explain why clients should be informed about dispute-resolution options and time limits where relevant, while avoiding legal advice.
• Describe the role of privacy regulators/commissioners in overseeing privacy compliance (e.g., PIPEDA oversight) and why privacy complaints matter.
• Explain how human rights commissions/tribunals can play a role when discrimination is alleged in underwriting or service.
• Explain the role of courts in resolving insurance disputes and how jurisprudence can influence interpretation of the Civil Code and contract duties in Québec.
• Describe the role of CIPR (Canadian Insurance Participant Registry) in tracking LLQP course/exam completion and eligibility (where applicable).
• Explain how insurers’ internal compliance and market conduct teams support consumer protection and can request documentation from agents.
• Explain the role of MGAs/agencies in supervising agents (where applicable) and how that supervision supports compliance and consumer protection.
• Describe how to refer clients to consumer protection resources appropriately (regulator contact, Assuris info, ombudsman process).
• Explain why maintaining confidentiality and privacy is critical when interacting with third parties (family members, employers, lawyers) during disputes or claims.
• Explain the importance of transparent communication and documentation when a client complaint arises, including recording facts and avoiding defensiveness.
• Apply a scenario to select the appropriate organization to contact for a given issue (licensing question, complaint about agent conduct, claim dispute, suspected fraud/AML concern).

2.2 Professional scope, licensing and practice set-up — banking vs securities vs insurance; registration and agencies

• Distinguish insurance products from banking products and securities products in terms of purpose (risk transfer vs deposit vs investment) and typical regulation.
• Explain why segregated funds (IVICs) sit within the insurance regulatory framework even though they have investment features, and how this differs from securities regulation.
• Describe why clients can be confused by overlapping product features and how an agent should clarify product category and protections.
• Explain the concept of acting within the scope of a licence and the risks of advising/selling outside that scope.
• Identify common licensing categories in insurance of persons (life, accident & sickness, segregated funds/IVIC where applicable) and what each typically authorizes.
• Explain that title/role rules for “financial planner” or similar titles may differ by jurisdiction and why marketing must be accurate and not misleading.
• Describe the general steps to become licensed (LLQP course/exams, sponsorship/appointment, regulator application) and why eligibility periods matter.
• Describe agent registration/certification concepts and how regulators may maintain registries of licensed agents.
• Explain agency licensing/certification concepts and when an individual may need to act through a licensed agency or MGA.
• Explain the role of an MGA and how it can provide contracting, supervision, training, and compliance support between insurer and agent.
• Explain how the agent–insurer contract can define authority (e.g., binding authority, use of forms) and limitations, and why following contractual rules supports compliance.
• Explain obligations around advertising and communications (accuracy, identification of insurer/agency, avoidance of misleading statements).
• Explain the purpose of continuing education (CE) and ethical expectations for maintaining competence over time.
• Explain why some jurisdictions require errors & omissions (E&O) coverage and how E&O supports consumer protection and professional risk management.
• Describe core file documentation expectations (fact-find, needs analysis, disclosures, recommendations, client decisions, replacement analysis, consents).
• Explain privacy/consent expectations in the sales process (collect only necessary data; obtain consent for medical and financial information).
• Describe identity verification expectations and why verifying identity reduces fraud and supports AML/ATF compliance.
• Explain general restrictions on handling client funds (premiums, cheques) and why mismanagement of money is a major misconduct risk.
• Explain referral arrangements and commission-sharing rules at a high level (who can be paid, disclosure expectations, and risks when dealing with unlicensed persons).
• Apply a scenario to decide whether an agent can proceed with a sale/recommendation, must refer the client, or must obtain additional licensing/authority.

2.2 Duties and responsibilities in practice — good faith, suitability, disclosure, documentation and service

• Explain contract delivery responsibilities (review key terms, obtain acknowledgements, and confirm no material change in health since application where required).
• Explain how to handle a policy issued with extra premium, exclusions, or reduced benefits, including the duty to disclose changes and confirm client acceptance.
• Explain how to identify and resolve discrepancies between the application and the issued policy (e.g., incorrect beneficiary, wrong coverage amount).
• Describe the three CCIR principles for managing conflicts of interest (client’s interests first, disclose conflicts, ensure product suitability).
• Explain why understanding client needs (thorough fact-finding) is essential to suitability and ethical practice.
• Explain the duty to act in good faith and how it relates to care, integrity, and competence in professional conduct.
• Explain how conducting business with integrity affects disclosures, comparisons, and communications (no misleading statements; accurate illustrations).
• Explain how to identify, avoid, disclose, and manage conflicts of interest (e.g., compensation incentives, tied relationships).
• Explain why agents should practise within the scope of their abilities and when they should refer a client to a specialist or seek guidance.
• Explain the proper use of policy illustrations and projections (assumptions, limitations, and disclosure of non-guaranteed elements).
• Explain commission-sharing and referral fee concepts at a high level, including disclosure and restrictions on sharing with unlicensed individuals.
• Explain replacement and policy switch obligations (disclose disadvantages, compare features and costs, complete required replacement forms where applicable).
• Explain documentation expectations for a compliant client file (fact-find, recommendation rationale, disclosures, client instructions, signed forms).
• Explain why privacy consents, needs analysis records, and disclosure forms are critical for both consumer protection and agent liability management.
• Explain the purpose of E&O and how agents can reduce liability risk through process controls (checklists, peer review, training).
• Explain ethical handling of client money and property (premium cheques, policy documents) and how to avoid embezzlement and misappropriation risks.
• Explain expectations for ongoing service (updates to beneficiary/ownership, policy reviews, address changes, claims assistance) and how service supports fair treatment.
• Explain complaint handling best practices (acknowledge, document, escalate to insurer process, provide ombudsman info where appropriate).
• Explain communication standards for client understanding (plain language, disclose limitations, verify understanding) and why this is part of ethical practice.
• Apply a scenario involving a conflict of interest, replacement, or suitability concern and select the most ethical and compliant course of action.

2.2 Prohibited and deceptive practices — misconduct, fraud, inducements, twisting and misleading marketing

• Define tied selling and explain why it is considered a deceptive or prohibited practice in many jurisdictions.
• Define churning and explain how unnecessary policy replacement can harm clients (fees, new contestability period, loss of benefits).
• Explain what rebating/policy rebates are and why inducements can be restricted or prohibited, focusing on consumer protection rationale.
• Define “trafficking of insurance” and describe why trading policies for improper purposes can create fraud and consumer harm.
• Define twisting and explain how misleading comparisons or misrepresentation to induce replacement violates ethical obligations.
• Explain inducing (improper incentives) and how gifts/benefits can create conflicts of interest or unfair sales pressure.
• Define fronting and explain why using a stand-in applicant/insured undermines underwriting and can constitute fraud.
• Explain misrepresentation (including omission) and how it can occur in marketing, sales conversations, and documentation.
• Explain coercion/undue influence and how to recognize vulnerability and avoid high-pressure tactics.
• Define forgery and describe why falsifying signatures or documents is severe misconduct with regulatory and criminal consequences.
• Define insurance fraud and identify common red flags in sales and claims contexts, including when to escalate concerns.
• Explain “holding out” (misleading claims about licensing, credentials, or authority) and why accurate representation is required.
• Explain incomplete comparisons and how cherry-picking benefits while omitting limitations misleads clients and breaches fair treatment expectations.
• Explain privacy-related misconduct (unauthorized disclosure, accessing records without consent) and its impact on consumer protection and trust.
• Explain marketing compliance risks under DNCL and anti-spam rules (consent, identification, unsubscribe) and why compliance is part of ethical practice.
• Explain AML/ATF compliance failures as misconduct risks (failure to verify identity, failure to report suspicious transactions where required).
• Describe possible consequences of misconduct (discipline, licence suspension/revocation, fines, civil liability) and why prevention is critical.
• Describe practical controls to reduce misconduct risk (supervision, training, scripts, checklists, second review for replacements, secure document handling).
• Explain appropriate steps when you suspect unethical conduct by a colleague or a client (document facts, follow internal reporting channels, avoid tipping off in AML contexts where applicable).
• Apply a scenario to identify the deceptive practice present and select the correct compliant response (stop, disclose, correct, escalate/report).

Tip: Treat each learning objective as a “can I pick the safest compliant next step in 60 seconds?” test. If not, add it to your miss log and drill it again in 48–72 hours.