LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
An agent's only insurer withdraws its sponsorship of his licence. In provinces requiring sponsorship the licence will:
- Atransfer automatically to any managing general agency the agent has previously worked with
- Bbe revoked permanently, preventing the agent from ever holding a licence again
- become inactive unless another sponsor is arranged within the period the regulator allows
- Dcontinue unaffected, since sponsorship is an administrative arrangement with no legal effect
Correct answer: C) become inactive unless another sponsor is arranged within the period the regulator allows
Where sponsorship is required, an agent without one cannot transact. Another insurer or agency must take on the sponsorship within the allowed period, and the regulator must be notified of the change.
Why the other options are wrong
- ASponsorship must be arranged and reported rather than transferring itself.
- BLosing sponsorship does not permanently bar an agent from licensing.
- DSponsorship is a licensing condition in the provinces that require it.
Exam tip
No sponsor means no transacting in the provinces that require one.
Common mistake
Continuing to write business after a sponsoring insurer has withdrawn.
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.