LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
The Criminal Code is relevant to agents because:
- Fraud, forgery, theft and money laundering are criminal offences that can arise from agent misconduct
- BIt sets the maximum commission an agent may earn, above which the excess is treated as secret commission
- CIt is irrelevant, since agent misconduct is dealt with exclusively through licensing discipline
- DIt licenses agents, since a criminal record check is the federal government's contribution to licensing
Correct answer: A) Fraud, forgery, theft and money laundering are criminal offences that can arise from agent misconduct
Misconduct can be both a licensing breach and a crime. The consequences are cumulative.
Why the other options are wrong
- BCommissions are contractual.
- CCriminal law applies to serious misconduct.
- DLicensing is provincial.
Exam tip
Serious misconduct = regulatory discipline plus possible criminal charges.
Common mistake
Treating premium diversion as a mere administrative error.
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.