LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
For a dual-licensed agent selling mutual funds, the relevant SRO is:
- AOLHI, which extends its complaint service to mutual funds sold by agents who are also licensed for insurance
- CIRO, which oversees mutual fund and investment dealers and their representatives under securities law
- CAssuris, which extends its insolvency protection to mutual fund dealers that are owned by life insurers
- DCLHIA, which sets the conduct standards for dual-licensed agents on behalf of its member insurers
Correct answer: B) CIRO, which oversees mutual fund and investment dealers and their representatives under securities law
Seg funds fall under insurance regulation; mutual funds under securities regulation and CIRO.
Why the other options are wrong
- AOLHI is an ombudservice, not a securities SRO.
- CAssuris provides insolvency protection for insurers only.
- DCLHIA is an industry association, not an SRO.
Exam tip
Seg funds = insurance regulator; mutual funds = securities/CIRO.
Common mistake
Applying securities suitability forms to seg funds and assuming they satisfy insurance rules (or vice versa) without checking.
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.