LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
The 'National Do Not Call List' and anti-spam legislation (CASL) protect clients by:
- Restricting unsolicited calls and messages: agents must respect the DNCL and obtain consent for commercial emails
- BApplying only to banks and telecommunications companies, since insurance agents are exempt as licensed professionals
- CNothing in practice, since the legislation is enforced only against large call centres and bulk email senders
- DBanning all marketing by insurance agents, so that new clients can be obtained only through referrals
Correct answer: A) Restricting unsolicited calls and messages: agents must respect the DNCL and obtain consent for commercial emails
Marketing rules are part of the agent's compliance landscape; penalties can be severe.
Why the other options are wrong
- BDNCL and CASL apply to agents, not only banks.
- CThese are real obligations with penalties.
- DMarketing is regulated, not banned.
Exam tip
DNCL + CASL: consent, identification, unsubscribe.
Common mistake
Emailing purchased lead lists without consent.
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.