LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
Which body would investigate an allegation that an agent forged a client's signature?
- ACLHIA, which maintains the industry's disciplinary tribunal for agent misconduct and can bar an agent from all member insurers
- BOSFI, since forgery affects the integrity of a federally regulated insurer's records
- The provincial regulator or council, potentially with police for fraud and the insurer's compliance function
- DAssuris, since a forged signature exposes the industry fund to a claim if the policy is contested
Correct answer: C) The provincial regulator or council, potentially with police for fraud and the insurer's compliance function
Licensing discipline is provincial; forgery is also a crime. Insurers report serious misconduct to regulators.
Why the other options are wrong
- ACLHIA has no disciplinary power.
- BOSFI does not discipline agents.
- DAssuris deals with insolvency.
Exam tip
Agent misconduct → provincial regulator/council (and police for crimes).
Common mistake
Believing only the insurer can act against a rogue agent.
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.