LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
A provincial insurance regulator (for example, FSRA in Ontario, BCFSA in British Columbia, or the AIC in Alberta) is responsible for:
- ASolvency supervision of federally incorporated insurers operating in the province, in parallel with OSFI's national role
- BSetting the interest rates insurers may credit on cash values and annuities sold in the province
- CFederal tax policy on insurance products, in coordination with the Canada Revenue Agency
- Licensing and disciplining agents, enforcing the Insurance Act and market conduct, and protecting consumers
Correct answer: D) Licensing and disciplining agents, enforcing the Insurance Act and market conduct, and protecting consumers
Provincial regulators (or insurance councils acting under delegation) issue licences, set conduct standards and investigate complaints against agents.
Why the other options are wrong
- AOSFI handles federal insurer solvency.
- BSetting rates is not an insurance regulator function.
- CTax policy is a finance matter, not insurance regulation.
Exam tip
Provincial regulator/council: licensing, discipline, conduct.
Common mistake
Confusing the regulator with the insurer's compliance department.
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.