LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
An agent belongs to a professional association with its own code of conduct. That code:
- Areplaces the regulator's rules for members, who then answer only to the association
- Bhas no relevance because only legislation can create obligations for an agent
- adds obligations of membership without displacing the requirements of the licence
- Dis enforced by the provincial regulator on the association's behalf when breached
Correct answer: C) adds obligations of membership without displacing the requirements of the licence
Membership is voluntary and the code operates alongside the law. Breaching it can cost membership and a designation, while the regulator's requirements continue to apply in every case.
Why the other options are wrong
- AAn association's code cannot displace statutory and licensing obligations.
- BA voluntary code creates real obligations for those who join.
- DAssociations enforce their own codes through their own processes.
Exam tip
Association codes add to, and never replace, the regulator's requirements.
Common mistake
Treating a professional designation's code as the governing standard.
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.