LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
The CCIR's 'Guidance: Conduct of Insurance Business and Fair Treatment of Customers' matters to agents because:
- AIt applies only to insurers, since intermediaries are governed by the licensing rules of their own province
- BIt is optional guidance that an agent may adopt as a best practice but that carries no consequence if ignored
- CIt is a marketing document that insurers use to describe their customer service commitments to the public
- Regulators use it to assess conduct across the product life cycle, and insurers embed it in agent contracts
Correct answer: D) Regulators use it to assess conduct across the product life cycle, and insurers embed it in agent contracts
FTC guidance is the practical conduct benchmark; regulators expect agents to know and follow it.
Why the other options are wrong
- AIt covers intermediaries too.
- BRegulators enforce it through their powers.
- CIt is a regulatory expectation, not marketing.
Exam tip
FTC guidance = the conduct benchmark regulators apply to agents.
Common mistake
Treating FTC as insurer-only.
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.