LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
The Office of the Superintendent of Financial Institutions (OSFI) is responsible for:
- AHandling consumer complaints about federally regulated insurers that have not been resolved internally
- BLicensing agents who sell products of federally incorporated insurers, in place of the provincial regulators
- Supervising the solvency of federally regulated insurers, banks and pension plans
- DApproving the wording of every policy form before a federally regulated insurer may sell it
Correct answer: C) Supervising the solvency of federally regulated insurers, banks and pension plans
OSFI's mandate is prudential. Market conduct, agent licensing and complaints are provincial or handled through other bodies.
Why the other options are wrong
- AComplaints go to insurers, OLHI and provincial regulators.
- BProvincial regulators license agents.
- DPolicy wording is a market conduct matter, largely provincial.
Exam tip
OSFI = solvency. Provinces = conduct and licensing.
Common mistake
Sending a client complaint to OSFI.
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.