LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
An agent licensed in Ontario is asked to serve a client residing in Quebec. The body whose licensing requirements apply is:
- Athe federal superintendent, which licenses agents operating across provincial boundaries
- the Autorité des marchés financiers, which regulates the distribution of insurance in Quebec
- Cthe Ontario regulator, since that is where the agent's own licence was originally issued
- Dthe insurer, which may extend its own licensing authority to agents it has contracted
Correct answer: B) the Autorité des marchés financiers, which regulates the distribution of insurance in Quebec
Quebec's integrated regulator oversees insurance distribution in that province, including the certification of representatives. An agent must be certified there before advising or transacting with a Quebec resident.
Why the other options are wrong
- AAgent licensing is provincial, not federal.
- CAn Ontario licence does not authorize activity in Quebec.
- DInsurers contract agents; they do not license them.
Exam tip
Quebec has its own integrated regulator for insurance distribution.
Common mistake
Assuming one province's licence covers a client who lives in another.
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.