LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
The OmbudService for Life & Health Insurance (OLHI) provides:
- AAgent licences for advisors who sell the products of its member insurers
- BBinding rulings on disputes between consumers and insurers, enforceable in the same way as a judgment of the superior court
- CSolvency supervision of life and health insurers, alongside OSFI, on behalf of consumers
- A free, independent complaint service after the insurer's internal process, with non-binding recommendations
Correct answer: D) A free, independent complaint service after the insurer's internal process, with non-binding recommendations
OLHI is the second step after the insurer's ombudsman. Its recommendations are not binding, but insurers generally follow them; court remains available.
Why the other options are wrong
- ALicensing is provincial.
- BRecommendations are non-binding.
- COSFI supervises solvency.
Exam tip
Complaint path: insurer → OLHI (non-binding) → court/regulator.
Common mistake
Sending a client to OLHI before the insurer's internal process is complete.
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.