LLQP Accident & Sickness · Component 3.2 · 25% of the exam
Before proposing a recommendation, the agent should confirm which regulatory and professional obligations?
- Suitability, disclosure of conflicts and compensation, a needs analysis, and any replacement rules
- BOnly that the agent's licence is current in the province, since licensing is the sole regulatory condition attached to advice
- CNone at this stage, since regulatory obligations arise at implementation rather than when the recommendation is proposed
- DOnly that privacy consent has been signed, since the recommendation itself is not a regulated activity under the Act
Correct answer: A) Suitability, disclosure of conflicts and compensation, a needs analysis, and any replacement rules
Suitability, disclosure and replacement rules are the ethical framework around recommendations, tested here in the A&S context.
Why the other options are wrong
- BLicensing is a precondition, not the only duty.
- CObligations exist at every step.
- DPrivacy is one of several obligations.
Exam tip
Recommendation obligations: suitability, disclosure, needs analysis, replacement rules.
Common mistake
Skipping the replacement disclosure when adding to existing coverage.
What this tests
CISRO competency component 3.2 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Accident & Sickness module. Written against the published curriculum.
More from component 3
- An underwriter assigns a disability applicant to occupational class 2 rather than class 4. The practical effect is that:
- A disability applicant discloses a back condition that resolved four years ago with no recurrence. The likely underwriting outcome is:
- Financial underwriting for an individual disability application exists to:
- A critical illness applicant's mother and sister both had breast cancer before fifty. The underwriter is likely to:
- An applicant for long-term care coverage is seventy-two. The insurer is most likely to require:
- Group long-term disability coverage within the non-evidence maximum is issued without individual medical questions because:
Practice the whole Accident & Sickness module
Timed sets weighted like the exam, and review of every question you miss. Free to start.