LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
The primary body that licenses and disciplines life insurance agents in a province is:
- The provincial regulator or, where delegated, the insurance council, which licenses and sanctions
- BOSFI, which licenses every agent who sells the products of a federally regulated insurer anywhere in Canada under the Insurance Companies Act
- CAssuris, which conditions its protection of policyholders on the licensing and conduct of the agents involved
- DCLHIA, which licenses agents on behalf of its member insurers and maintains the national disciplinary register
Correct answer: A) The provincial regulator or, where delegated, the insurance council, which licenses and sanctions
Licensing is provincial. Some provinces delegate to self-regulatory councils; others license directly through the regulator (for example, FSRA in Ontario).
Why the other options are wrong
- BOSFI supervises insurers' solvency, not agents.
- CAssuris protects policyholders on insolvency.
- DCLHIA is an industry association without licensing power.
Exam tip
Licensing and discipline: provincial regulator or insurance council.
Common mistake
Naming OSFI as the agent's regulator.
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.