LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
The Canadian Life and Health Insurance Association (CLHIA) is:
- AA consumer ombudsman that issues non-binding recommendations on unresolved complaints against insurers
- The industry association of life and health insurers, issuing guidelines without enforcement power
- CA regulator with the power to license and discipline agents on behalf of the provinces that have delegated that role to it
- DA federal government department responsible for the supervision of life and health insurance companies
Correct answer: B) The industry association of life and health insurers, issuing guidelines without enforcement power
CLHIA guidelines shape industry practice; compliance is through member insurers' contracts with agents, not law.
Why the other options are wrong
- AOLHI is the ombudservice, not CLHIA.
- CIt has no licensing or enforcement authority.
- DIt is a private industry body.
Exam tip
CLHIA = industry association and guidelines, not a regulator.
Common mistake
Citing CLHIA guidelines as legislation.
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.