LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
The provincial regulator's 'licence check' or public register allows clients to:
- ANothing of practical value, since the register lists only the agent's name and the date the licence was first issued
- BSee each agent's income and commission history, so they can judge whether the agent's advice is influenced by compensation
- CFile claims against agents directly with the regulator, which then recovers the loss from the agent's E&O insurer
- Verify that an agent is licensed, in which classes, with which sponsor, and whether any discipline is recorded
Correct answer: D) Verify that an agent is licensed, in which classes, with which sponsor, and whether any discipline is recorded
Public registers are a consumer-protection transparency tool; agents should encourage clients to check.
Why the other options are wrong
- AThe public register is a real consumer tool.
- BIncome is not published.
- CClaims go to insurers, not the register.
Exam tip
Public register: licence status, class, sponsor, discipline.
Common mistake
Practising in a class (for example, A&S only) not covered by the licence.
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.