LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
An agent holds licences in two provinces whose continuing education and disclosure requirements differ. The agent must:
- Afollow only the rules of the province where the agent's head office is situated
- meet each province's requirements for the business conducted in that province
- Capply for an exemption, since no agent can be expected to satisfy two regimes at once
- Dfollow whichever set of rules is less demanding, since the licences are equivalent
Correct answer: B) meet each province's requirements for the business conducted in that province
Each regulator sets conditions for business done under its own licence. Holding several licences means satisfying each regime, and a breach in one province is normally reportable to the others.
Why the other options are wrong
- AHead office location does not determine which rules govern the transaction.
- CNo exemption relieves an agent of the conditions attached to a licence held.
- DA licence carries its own conditions; the lighter regime does not displace them.
Exam tip
Multiple licences mean multiple sets of obligations, applied where the business is done.
Common mistake
Treating the strictest or easiest province's rules as covering all of them.
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.