LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
Professional associations such as Advocis (and its designation bodies) protect clients by:
- Setting voluntary codes, continuing education and designations with member discipline, complementing licensing
- BEnforcing the Insurance Act against their members through a tribunal whose sanctions replace those of the regulator
- CLicensing agents in provinces that have delegated the function to the profession, as the law societies do for lawyers
- DPaying claims from a members' guarantee fund when a member's client suffers loss through negligent advice
Correct answer: A) Setting voluntary codes, continuing education and designations with member discipline, complementing licensing
Voluntary professional bodies raise standards but lack statutory power.
Why the other options are wrong
- BEnforcing the Insurance Act is the regulator's job.
- CLicensing is regulatory, not delegated to associations.
- DProfessional associations do not pay claims.
Exam tip
Professional associations: voluntary codes, designations, member discipline.
Common mistake
Presenting a designation as a licence.
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.