LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
Which of the following is a source of law governing an agent's conduct in addition to the Insurance Act?
- AThe insurer's marketing materials, since they describe the standard of service the agent has agreed to deliver
- BOnly the agent's employer or sponsoring insurer, since the Act delegates conduct standards to them
- Regulations, codes of conduct, licensing conditions, privacy and AML statutes, tax law, and the common law
- DNothing else, since the Insurance Act is a complete code of everything an agent must and must not do
Correct answer: C) Regulations, codes of conduct, licensing conditions, privacy and AML statutes, tax law, and the common law
Agents operate within layered obligations: statute, regulation, codes, contract with insurers, and common-law duties of care and fiduciary-like obligations.
Why the other options are wrong
- AMarketing is not law.
- BThe employer's rules are contractual, not the only source.
- DMultiple sources apply.
Exam tip
Layers: Act, regulations, codes, licence conditions, privacy/AML/tax, common law.
Common mistake
Forgetting that negligence law applies to advice.
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.