LLQP Ethics study guide
LLQP Ethics · Work through your exam, one topic at a time.
The LLQP Ethics component is the professional-conduct portion of Canada's Life Licence Qualification Program, the entry pathway for people seeking a life insurance agent licence. It is written for new candidates preparing for their first licence, and for career-changers moving into insurance sales or financial advice. The LLQP Ethics study guide has 6 sections and about 1,919 words.
01Ethics, Professionalism and the Regulatory Framework
Candidates must understand that life insurance in Canada is regulated at two levels. The federal Insurance Companies Act governs the solvency and market conduct of insurers, while provincial and territorial regulators license and supervise individual agents and brokers.
349 words, about 2 min02Duties to Clients: Suitability, Disclosure and Conflicts of Interest
The suitability duty requires the agent to gather and document the client's financial situation, needs, objectives, risk tolerance and time horizon before recommending a product. A recommendation is suitable only if it fits those facts and the client understands the trade-offs.
355 words, about 2 min03Duties to the Public and Market Integrity
Life insurance depends on public trust. Duties to the public include fair dealing, honest marketing, preventing fraud and money laundering, and refusing to participate in arrangements that harm consumers or the market.
283 words, about 1 min04Duties to the Profession and to the Regulator
Duties to the profession include competence, honesty with colleagues and insurers, respect for the licence, and adherence to codes of conduct. Agents must not make false statements on applications, must not backdate documents, must not submit business they know to be unsuitable, and must not disparage competitors with false claims.
302 words, about 2 min05Confidentiality, Privacy and Information Handling
Client information is confidential. Agents may collect, use and disclose personal information only for purposes a reasonable person would consider appropriate and only with the client's knowledge and consent, consistent with privacy law such as PIPEDA and provincial privacy statutes.
301 words, about 2 min06Ethical Decision-Making and Case Application
Ethical decision-making in life insurance follows a structured path: (1) identify the facts and the stakeholders; (2) identify the ethical issue and the duties in tension; (3) list the options and their consequences; (4) test each option against the law, the code of conduct, and the "front-page test" (would I be comfortable if this were public?); (5) choose, act, document, and review. The framework matters because exam questions reward process over intuition.
329 words, about 2 min