LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
A candidate asks who sets the national qualification standard the licensing examinations are based on. The answer is:
- Athe industry association, which writes the examinations for every province in Canada
- Bthe federal government, through legislation setting entry standards for financial advisers
- Ceach insurer, which designs the standard applied to the agents it intends to contract
- the council of insurance regulators that maintains the national qualification program
Correct answer: D) the council of insurance regulators that maintains the national qualification program
The regulators cooperate through a national body to maintain a common qualification program and design document, which the provinces then adopt. This gives candidates a consistent standard across jurisdictions.
Why the other options are wrong
- AAn industry association is not the body that sets the qualification standard.
- BEntry standards for agents are set provincially through cooperation.
- CInsurers contract qualified agents rather than setting the standard.
Exam tip
Regulators cooperate nationally on the qualification standard; provinces license.
Common mistake
Attributing the licensing standard to the federal government or an association.
What this tests
CISRO competency component 2.1 — Integrate into practice the rules governing the activities of life insurance agents — which is weighted at 40% of the Ethics & Professional Practice module. Written against the published curriculum.
More from component 2
- A prospective client wants to confirm that an agent is properly licensed before meeting him. She should:
- A dual-licensed agent's mutual fund business is reviewed following a client complaint. The review will be conducted by:
- Assuris coverage applies to:
- OLHI's services are available to:
- Complaints about an agent's conduct (as opposed to an insurer's claim decision) should be directed to:
- The best summary of an agent's ethical obligations is to:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.