LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
An agent plans to email a marketing newsletter to a purchased list of local residents. Canadian anti-spam legislation requires that:
- Athe agent register the mailing list with the provincial insurance regulator beforehand
- consent be obtained before sending, with the sender identified and an unsubscribe mechanism
- Cmessages be sent only between certain hours of the day in the recipient's own local time zone
- Dnothing further be done, since business-to-consumer marketing is outside the legislation
Correct answer: B) consent be obtained before sending, with the sender identified and an unsubscribe mechanism
Commercial electronic messages require express or implied consent. Each message must identify the sender, give contact information and offer a simple way to withdraw consent, which must then be honoured promptly.
Why the other options are wrong
- ANo registration of a marketing list with an insurance regulator is required.
- CThe legislation governs consent and content, not the hour messages are sent.
- DCommercial messages to consumers are squarely within the legislation.
Exam tip
Consent, identification and an unsubscribe option are required in every commercial message.
Common mistake
Emailing a purchased list on the assumption that consent can be implied.
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.