LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
The Canada Deposit Insurance Corporation (CDIC) protects:
- ASegregated fund guarantees issued by insurers that are also owned by a CDIC member bank
- BAnnuities issued by life insurers, up to the same limits that apply to deposits at member institutions
- Eligible deposits at member banks and trust companies up to limits, not insurance products, annuities or seg funds
- DLife insurance policies issued by federally regulated insurers, in the same way as deposits at federally regulated banks
Correct answer: C) Eligible deposits at member banks and trust companies up to limits, not insurance products, annuities or seg funds
Distinguishing CDIC from Assuris is a basic client-protection fact.
Why the other options are wrong
- ASegregated fund guarantees are protected by Assuris, not CDIC.
- BAnnuities are protected by Assuris, not CDIC.
- DLife insurance policies are protected by Assuris, not CDIC.
Exam tip
CDIC = bank deposits; Assuris = insurance.
Common mistake
Telling a client their GIA is CDIC-insured.
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.