LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
A prospective client wants to confirm that an agent is properly licensed before meeting him. She should:
- search the provincial regulator's public register of licensed agents
- Btelephone the federal superintendent of financial institutions for confirmation of the licence
- Cask the agent's managing general agency, which is the only body holding such records
- Dask the agent to show a business card bearing the name of the insurer he represents
Correct answer: A) search the provincial regulator's public register of licensed agents
Provincial regulators publish a searchable register showing whether a licence is in force, its class and any conditions or discipline. Checking it takes a moment and is the reliable way to confirm an agent's standing.
Why the other options are wrong
- BThe federal superintendent supervises insurers rather than licensing agents.
- CAgencies hold contracts; the regulator holds the licensing record.
- DA business card proves nothing about whether a licence is currently in force.
Exam tip
Licence status is public; point clients to the regulator's register.
Common mistake
Treating an insurer contract or business card as evidence of a licence.
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 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:
- The provincial regulator's power to conduct 'market conduct examinations' means:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.