LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
The CLHIA 'Advisor Disclosure' guideline recommends that agents disclose to clients:
- ATheir home address and personal contact details, so the client can reach them outside business hours
- The insurers represented, the nature of compensation, conflicts, licensing, and that more detail is available
- CNothing in writing, since the guideline treats disclosure as a conversation rather than a document
- DTheir exact commission amount in dollars on every sale, calculated before the client signs the application and shown on the form
Correct answer: B) The insurers represented, the nature of compensation, conflicts, licensing, and that more detail is available
Disclosure builds informed trust; provinces have made much of it mandatory.
Why the other options are wrong
- AA home address is not part of advisor disclosure.
- CWritten disclosure is expected.
- DThe nature of compensation is disclosed, with detail on request under most rules.
Exam tip
Disclose: insurers, compensation nature, conflicts, licence.
Common mistake
Omitting non-cash incentives from disclosure.
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.