LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
A 'regulation' made under a provincial Insurance Act differs from the Act itself in that:
- Subordinate legislation made under authority delegated by the Act, with the force of law within that authority
- BIt overrides the Act whenever the two conflict, since regulations are more recent and more detailed than the statute itself
- CIt has no legal force and serves only as guidance that agents may follow if they choose
- DIt applies only to insurers, since agents are governed by the Act itself and the regulator's licensing rules
Correct answer: A) Subordinate legislation made under authority delegated by the Act, with the force of law within that authority
Understanding the hierarchy — statute, regulation, regulator rules and guidance — helps agents locate their obligations.
Why the other options are wrong
- BRegulations cannot exceed the Act's authority.
- CRegulations are binding.
- DMany regulations govern agents directly.
Exam tip
Act → regulations → rules/guidance; each binding within its authority.
Common mistake
Treating regulator guidance as optional.
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.