LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
Assuris coverage applies to:
- AMutual funds sold by insurance agents who are dual-licensed, since they are distributed through insurers
- Death, health and disability benefits, annuity income, cash values and seg fund guarantees, at stated percentages
- CBank deposits held by policyholders, since Assuris and CDIC share a single protection fund
- DThe full market value of segregated funds, so that no policyholder loses money if an insurer fails during a market downturn
Correct answer: B) Death, health and disability benefits, annuity income, cash values and seg fund guarantees, at stated percentages
Assuris protects contractual promises, not market values. Nearly all life insurers in Canada are members.
Why the other options are wrong
- AMutual funds are not insurance products.
- CBank deposits are covered by CDIC, not Assuris.
- DOnly guaranteed amounts are covered.
Exam tip
Assuris: insurance promises at set percentages; not market value.
Common mistake
Claiming Assuris covers a seg fund's full market value.
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:
- 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:
- The provincial regulator's power to conduct 'market conduct examinations' means:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.