LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
The Financial Consumer Agency of Canada (FCAC) is relevant to life agents because:
- It oversees federally regulated institutions' consumer obligations and financial literacy, but not insurance contracts
- BIt is irrelevant to life agents, since it deals exclusively with banks and has no interest in insurance products
- CIt sets the commissions that federally regulated insurers may pay to agents on each class of product
- DIt licenses agents who sell the products of federally regulated insurers, in place of the provincial regulators and councils
Correct answer: A) It oversees federally regulated institutions' consumer obligations and financial literacy, but not insurance contracts
FCAC's mandate is federal consumer protection (banks, federal insurers' consumer provisions) and education. Agents should know its role and limits.
Why the other options are wrong
- BIt is part of the consumer-protection landscape agents should know.
- CCommissions are set by insurers.
- DProvinces license agents.
Exam tip
FCAC = federal consumer protection and literacy; not an insurance contract regulator.
Common mistake
Referring a licensing complaint to FCAC.
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.