LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
The Financial Consumer Agency of Canada protects insurance clients mainly where:
- AClaims are denied by a life insurer, since FCAC has the power to review and overturn claim decisions made by federally regulated insurers
- Federally regulated institutions, such as creditor insurance sold through banks and tied selling
- CProvincial agents are involved, since FCAC coordinates the provincial regulators' enforcement against agents
- DNowhere in practice, since FCAC's mandate is limited to banking fees and has no connection to insurance
Correct answer: B) Federally regulated institutions, such as creditor insurance sold through banks and tied selling
FCAC's reach is federal institutions and literacy; it complements provincial insurance regulators.
Why the other options are wrong
- ADenied claims go to the insurer, OLHI and the courts, not FCAC.
- CProvincial regulators handle agents.
- DFCAC has a role at the federal institution level.
Exam tip
FCAC: banks' insurance activities, tied selling, literacy.
Common mistake
Sending a life insurance claim complaint to FCAC.
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.