LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
Assuris is:
- AAn insurer that reinsures the policies of smaller Canadian life companies to protect their policyholders
- BA deposit insurer that covers bank deposits and, since a recent extension, segregated fund contracts
- The industry-funded body that protects policyholders if a member insurer becomes insolvent, within limits
- DA federal regulator that steps in to manage a life insurer once OSFI has found it to be insolvent and unable to pay claims
Correct answer: C) The industry-funded body that protects policyholders if a member insurer becomes insolvent, within limits
All federally and most provincially licensed life insurers must belong to Assuris. Coverage limits vary by benefit type.
Why the other options are wrong
- AIt does not sell or reinsure insurance.
- BCDIC covers bank deposits; Assuris does not.
- DIt is not a regulator.
Exam tip
Assuris protects policyholders on insurer insolvency, within limits.
Common mistake
Telling clients Assuris guarantees 100% of every benefit.
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.