LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
The 'Canadian Association of Independent Life Brokerage Agencies' (CAILBA) contributes to client protection by:
- ARegulating insurers that distribute through independent agencies, on behalf of the provincial regulators
- BPaying claims on policies placed through member agencies when the insurer disputes the agent's authority
- Setting best-practice standards for MGAs on compliance, screening and supervision of independent agents
- DLicensing the agents who work through member agencies, in place of the provincial regulators and councils
Correct answer: C) Setting best-practice standards for MGAs on compliance, screening and supervision of independent agents
CAILBA is the MGA industry association; its best-practice standards for compliance, screening and supervision complement regulators' expectations of MGAs but are not themselves law.
Why the other options are wrong
- ACAILBA does not regulate insurers.
- BCAILBA does not pay claims.
- DCAILBA does not license agents.
Exam tip
CAILBA = MGA best practices.
Common mistake
Confusing CAILBA with a regulator.
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.