LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
Provincial legislation typically requires an agent to be:
- AA member of the provincial law society, since insurance advice involves interpreting the Insurance Act
- BA member of CLHIA, since the association's guidelines apply only to those who have joined it
- Licensed in each province of business, sponsored as required, insured for E&O, and current on education
- DEmployed by the provincial government, since licensed agents act on behalf of the regulator whenever they sell a policy
Correct answer: C) Licensed in each province of business, sponsored as required, insured for E&O, and current on education
Licensing is provincial; E&O insurance and continuing education are standard conditions. Selling in a province without a licence is an offence.
Why the other options are wrong
- ANo law degree is required.
- BCLHIA membership is for insurers.
- DAgents are private licensees.
Exam tip
Licence in each province, E&O, CE — the standard conditions.
Common mistake
Servicing a client who moved provinces without being licensed there.
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.