LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
The most complete list of the bodies a life agent may be accountable to is:
- The regulator, sponsoring insurers and MGA, FINTRAC, privacy commissioners, associations, courts, and securities bodies if dual-licensed
- BNo one in a formal sense, since an agent is an independent business owner answerable only to clients and the market
- CThe sponsoring insurer only, since the insurer's contract with the agent sets out every obligation the agent must meet in practice
- DOSFI only, since it supervises the insurers whose products the agent sells and therefore the agent by extension
Correct answer: A) The regulator, sponsoring insurers and MGA, FINTRAC, privacy commissioners, associations, courts, and securities bodies if dual-licensed
Accountability is layered; each body enforces a different set of obligations.
Why the other options are wrong
- BAgents answer to many bodies.
- CAccountability extends far beyond the insurer.
- DOSFI does not oversee agents.
Exam tip
Accountability map: regulator, insurer/MGA, FINTRAC, privacy, associations, courts, securities bodies.
Common mistake
Forgetting securities obligations when dual-licensed.
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.