LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
A client with a very large policy asks how much of it Assuris would protect if the insurer failed. The agent should explain that:
- Athe whole amount is protected regardless of how large the policy happens to be
- Bprotection depends on the province in which the policyholder happens to reside
- Cno protection exists for life insurance, which is why the insurer's rating matters most
- protection applies up to stated limits that differ by benefit type, so spreading coverage can help
Correct answer: D) protection applies up to stated limits that differ by benefit type, so spreading coverage can help
Assuris sets limits that differ between death benefits, monthly income, cash values and accumulated amounts. A client whose coverage exceeds a limit can reduce exposure by holding contracts with more than one member insurer.
Why the other options are wrong
- AProtection is capped rather than unlimited.
- BCoverage depends on the insurer's membership, not the province of residence.
- CAssuris exists precisely to protect life insurance policyholders.
Exam tip
Assuris limits vary by benefit type; splitting large coverage can help.
Common mistake
Assuring a client that a policy of any size is fully protected.
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.