LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
The 'Insurance Bureau of Canada' (IBC) is:
- AAn ombudsman that resolves complaints about property and casualty insurers on behalf of consumers
- BThe life insurance industry body, which issues guidelines on advisor conduct and illustrations for its members
- The property and casualty industry association, not the life and health body, which is CLHIA
- DA regulator that licenses property and casualty agents in the provinces that have delegated the function
Correct answer: C) The property and casualty industry association, not the life and health body, which is CLHIA
Knowing which body covers which sector prevents misdirecting clients: IBC represents property and casualty insurers, CLHIA represents life and health insurers, and neither is a regulator or ombudsman.
Why the other options are wrong
- AGIO is the P&C ombudsman.
- BThe life and health industry body is CLHIA, not IBC.
- DIBC is an industry association, not a regulator.
Exam tip
IBC = P&C; CLHIA = life and health.
Common mistake
Referring a life insurance question to IBC.
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.