LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
The requirement to give clients a written 'disclosure' about the agent (licence, insurers represented, compensation, conflicts) is enforced by:
- ANo one in practice, since disclosure is a best practice recommended by the industry but not required by any rule or contract
- Provincial regulators and councils, and insurers through their contracts, with sanctions for non-compliance
- CAssuris, which requires written disclosure as a condition of extending its protection to the agent's clients
- DOSFI, which reviews agent disclosure documents as part of its supervision of federally regulated insurers
Correct answer: B) Provincial regulators and councils, and insurers through their contracts, with sanctions for non-compliance
Advisor disclosure is a concrete client-protection rule with regulatory teeth.
Why the other options are wrong
- AAdvisor disclosure is enforced by regulators and insurers.
- CAssuris does not enforce advisor disclosure.
- DOSFI does not enforce advisor disclosure.
Exam tip
Advisor disclosure: regulator + insurer enforcement.
Common mistake
Skipping written disclosure with existing clients.
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.