LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
CLHIA protects clients by:
- Issuing industry guidelines that member insurers adopt on screening, disclosure, illustrations and replacement
- BEnforcing the Insurance Act against member insurers and their agents through its own disciplinary tribunal, with binding sanctions
- CLicensing agents on behalf of the provinces, which have delegated that function to the industry association
- DPaying claims on behalf of member insurers that are unable to meet their obligations to policyholders
Correct answer: A) Issuing industry guidelines that member insurers adopt on screening, disclosure, illustrations and replacement
CLHIA guidelines are influential because insurers contractually require agents to follow them.
Why the other options are wrong
- BCLHIA has no enforcement power.
- CLicensing is provincial; CLHIA does not license.
- DMember insurers pay claims; CLHIA does not.
Exam tip
CLHIA guidelines → adopted by insurers → binding on agents by contract.
Common mistake
Ignoring CLHIA guidelines because they are 'not law'.
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.