LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
The sanctions a provincial regulator or council can impose on an agent include:
- AImprisonment directly, since the regulator's tribunal has the powers of a criminal court in licensing matters
- Reprimands, licence conditions, fines, mandatory education, suspension and revocation, often published
- COnly a written warning, since anything more severe requires a prosecution under the Insurance Act
- DNothing of substance, since the regulator's role is educational and enforcement is left to the insurers
Correct answer: B) Reprimands, licence conditions, fines, mandatory education, suspension and revocation, often published
Regulatory sanctions are administrative; criminal penalties come from the courts. Published decisions affect an agent's ability to work anywhere.
Why the other options are wrong
- ARegulators do not imprison; courts do.
- CSanctions escalate to revocation.
- DReal consequences exist.
Exam tip
Sanctions: reprimand → conditions → fine → suspension → revocation; published.
Common mistake
Failing to disclose a prior sanction on a licence application.
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.