LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent's advertising and marketing must:
- ABe approved in advance by the clients whose testimonials it uses, since client consent is the only requirement
- Be truthful and not misleading, not guarantee results, use approved materials, and comply with privacy, CASL and DNCL
- CSay whatever attracts clients, since advertising is understood by the public as promotion rather than advice
- DAvoid all mention of insurance products, since only the insurer may advertise the products it issues
Correct answer: B) Be truthful and not misleading, not guarantee results, use approved materials, and comply with privacy, CASL and DNCL
Advertising is a frequent compliance issue; insurers usually require pre-approval of agent materials.
Why the other options are wrong
- AInsurer approval is often required, not client approval.
- CTruthfulness is required.
- DAccurate mention of products is fine.
Exam tip
Advertising: truthful, no guarantees, approved, compliant.
Common mistake
Posting 'guaranteed returns' on social media.
What this tests
CISRO competency component 2.2 — 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.