LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
A client sees an insurer advertisement she believes is misleading. The body that would examine the conduct is:
- Athe federal privacy commissioner, whose mandate covers commercial communications
- Bthe ombudservice, which reviews advertising before it is published by any insurer
- the provincial regulator, through its market conduct supervision of insurers
- Dthe industry association, which can order the advertisement to be withdrawn at once
Correct answer: C) the provincial regulator, through its market conduct supervision of insurers
Market conduct supervision covers how insurers deal with the public, including advertising and disclosure. Legislation on unfair or deceptive acts gives the regulator the basis for acting on a misleading communication.
Why the other options are wrong
- AThe privacy commissioner deals with personal information, not advertising claims.
- BThe ombudservice reviews individual complaints after the insurer's process.
- DAn industry association sets guidelines but does not order withdrawals.
Exam tip
Advertising and sales conduct fall under provincial market conduct supervision.
Common mistake
Sending an advertising complaint to the ombudservice or the privacy commissioner.
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.