LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
The Canadian Anti-Fraud Centre and provincial consumer-protection offices help clients by:
- ALicensing agents who have been cleared of fraud allegations, so that clients can trust the public register
- BNothing in practice, since fraud is a police matter and consumer offices have no investigative powers
- Receiving fraud reports, issuing public warnings and education, and coordinating with police
- DPaying restitution to fraud victims from a government fund, so that clients recover their losses quickly
Correct answer: C) Receiving fraud reports, issuing public warnings and education, and coordinating with police
Fraud reporting bodies are part of the protection ecosystem, especially for vulnerable clients targeted by scams.
Why the other options are wrong
- AFraud centres do not license agents.
- BFraud reporting bodies have a real protective role.
- DRestitution comes through the courts.
Exam tip
Suspected fraud → Anti-Fraud Centre and police.
Common mistake
Ignoring signs a senior client is being scammed.
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.