LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
A client asks why agents in different provinces answer to differently named bodies. The explanation is that:
- each province organizes its regulation differently, using a council or an integrated regulator
- Bthe federal government assigns a different supervisor to each province by regulation
- Cagents may choose which province's body they would prefer to be accountable to
- Dthe differences are historical only and every province now uses an identical structure
Correct answer: A) each province organizes its regulation differently, using a council or an integrated regulator
Some provinces delegate licensing and discipline to an insurance council, while others house it in a broader financial services regulator. The functions are similar even though the structures and names differ.
Why the other options are wrong
- BThe federal government does not assign provincial supervisors.
- CAccountability follows the licence held, not the agent's preference.
- DThe structures genuinely differ from one province to another.
Exam tip
Councils and integrated regulators do similar work under different names.
Common mistake
Assuming one province's structure applies across the country.
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.