LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
A client remains unhappy after the insurer's internal complaints officer has issued a final position. The agent should explain that the client may:
- Aask the agent to negotiate a settlement personally on the client's behalf with the insurer
- Bdo nothing further, since the insurer's final position ends the matter completely
- Cappeal directly to the provincial regulator, which will decide the amount payable
- take the complaint to the independent ombudservice for life and health insurance
Correct answer: D) take the complaint to the independent ombudservice for life and health insurance
The ombudservice reviews unresolved complaints after the insurer's internal process is exhausted and makes non-binding recommendations. The client also retains the right to pursue the matter through the courts.
Why the other options are wrong
- AAn agent should not act as negotiator in a dispute between client and insurer.
- BAn independent review and the courts both remain available to the client.
- CRegulators discipline licensees; they do not award compensation to complainants.
Exam tip
Internal complaints officer first, then the independent ombudservice.
Common mistake
Sending a dissatisfied client to the regulator for compensation.
What this tests
CISRO competency component 1.1 — Integrate into practice the legal aspects of insurance and annuity contracts — which is weighted at 60% of the Ethics & Professional Practice module. Written against the published curriculum.
More from component 1
- An 'assignee' of a life insurance policy is:
- A corporation as policyowner and beneficiary of a policy on a key employee:
- A 'trustee' named to receive proceeds on behalf of a beneficiary:
- The 'automatic premium loan' (APL) provision:
- A life insurance contract 'matures' when:
- The 'assignment' provision typically states that:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.