LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
Provincial 'insurance councils' (for example, in Alberta, BC, Saskatchewan, Manitoba) are:
- Statutory self-regulatory bodies with delegated authority to license, set rules, investigate and discipline
- BInsurers that have been granted a provincial mandate to license the agents who sell their products
- CIndustry lobby groups that represent agents' interests before the provincial legislature and the regulator
- DFederal agencies established under the Insurance Companies Act to oversee agent conduct in the four western provinces
Correct answer: A) Statutory self-regulatory bodies with delegated authority to license, set rules, investigate and discipline
Councils exercise statutory authority under the provincial Act; their decisions are enforceable.
Why the other options are wrong
- BInsurance councils are not insurers.
- CInsurance councils are statutory regulators, not lobby groups.
- DCouncils are provincial bodies, not federal agencies.
Exam tip
Councils = delegated statutory regulators in several provinces.
Common mistake
Treating a council's code of conduct as advisory.
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.