LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
The Personal Information Protection and Electronic Documents Act (PIPEDA) and equivalent provincial laws require an agent to:
- AShare client information freely with other licensed professionals, since they are bound by the same rules
- BSell client lists only to other insurers, since the information stays within the regulated industry
- Obtain meaningful consent, limit collection, safeguard the information, allow access, and report breaches
- DKeep no records of client health information, since retaining it creates a privacy liability
Correct answer: C) Obtain meaningful consent, limit collection, safeguard the information, allow access, and report breaches
Privacy legislation governs the health and financial information agents handle. Provinces with substantially similar laws (Alberta, BC, Quebec) apply their own statutes to provincially regulated activity.
Why the other options are wrong
- ADisclosure requires consent.
- BSelling client data without consent is a breach.
- DRecords must be kept, securely.
Exam tip
Privacy: consent, purpose limitation, safeguards, access, breach reporting.
Common mistake
Sharing a client's health information with a referral partner without consent.
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.