ETHICS LLQP FINAL SCRIPT 2026
INSURANCE ETHICS QUESTIONS ANSWERS
COMPLETE A+
◉ Nevin owns a permanent life insurance policy on his own life. The
policy has a CSV of $200,000 and an ACB of $100,000. He decides he
needs $150,000. After the transaction, he is told that he will have to
include $50,000 taxable policy gains in his income for this year and
pay tax on it.
What transaction has Nevin undertaken?
1. Collateral loan
2. Policy loan
3. Partial surrender
4. Withdrawal
Answer: 2. Policy loan
◉ The ability for an individual to provide valid consent to enter into
a contract is the concept which can be best referred to as oneas?
1. Legal capacity.
2. Lawful status.
3. Power of attorney.
4. Legal representation.
,Answer: 1. Legal capacity.
◉ Tina, a new client, asks her agent about regulation in the
insurance industry. Tina wants to know specifically whether there is
an inter-jurisdictional agency to facilitate and promote an efficient
and effective regulatory system in Canada to serve the public
interest.What does Tinaas agent tell her?
1. Canadian Life and Health Insurance Association (CLHIA)
2. Canadian Insurance Services Regulatory Organizations (CISRO)
3. Canadian Council of Insurance Regulators (CCIR)
4. Canadian Securities Administrators (CSA)
Answer: 3. Canadian Council of Insurance Regulators (CCIR)
◉ Valerie is a new insurance agent. She is confused about the
regulatory authorities in the insurance industry and asks her
supervisor to clarify a few points for her.
Who licenses and regulates agents and insurance agencies?
1. Office of the Superintendent of Financial Institutions (OFSI)
2. Canadian Insurance Services Regulatory Organizations (CISRO)
3. Canadian Council of Insurance Regulators (CCIR)
4. Each separate provincial and territorial insurance regulator
Answer: 4. Each separate provincial and territorial insurance
regulator
, ◉ Suhana wants to know if she can become a life insurance agent
while also having another occupation.
Which of the following occupations are considered restricted
occupations with regard to selling life insurance?
1. Police officer
2. Securities broker
3. Mortgage broker
4. Real estate agent
Answer: 1. Police officer
◉ Clarence is training to become an insurance agent and was told it
is important that he understand all aspect of public insurance and
retirement programs and monitor changes to such programs. Which
of the following best describes why this is important for him to
understand?
1. To ensure his clients have adequate retirement income to support
their insurance costs.
2 - To be able to complete a full financial plan for each client.
3 - To try and overlap benefits in order to collect double payments
where possible under a privately sponsored health plan.
4 - So any needs analysis or advice provided takes into account
relevant information.
Answer: 4 - So any needs analysis or advice provided takes into
account relevant information.
INSURANCE ETHICS QUESTIONS ANSWERS
COMPLETE A+
◉ Nevin owns a permanent life insurance policy on his own life. The
policy has a CSV of $200,000 and an ACB of $100,000. He decides he
needs $150,000. After the transaction, he is told that he will have to
include $50,000 taxable policy gains in his income for this year and
pay tax on it.
What transaction has Nevin undertaken?
1. Collateral loan
2. Policy loan
3. Partial surrender
4. Withdrawal
Answer: 2. Policy loan
◉ The ability for an individual to provide valid consent to enter into
a contract is the concept which can be best referred to as oneas?
1. Legal capacity.
2. Lawful status.
3. Power of attorney.
4. Legal representation.
,Answer: 1. Legal capacity.
◉ Tina, a new client, asks her agent about regulation in the
insurance industry. Tina wants to know specifically whether there is
an inter-jurisdictional agency to facilitate and promote an efficient
and effective regulatory system in Canada to serve the public
interest.What does Tinaas agent tell her?
1. Canadian Life and Health Insurance Association (CLHIA)
2. Canadian Insurance Services Regulatory Organizations (CISRO)
3. Canadian Council of Insurance Regulators (CCIR)
4. Canadian Securities Administrators (CSA)
Answer: 3. Canadian Council of Insurance Regulators (CCIR)
◉ Valerie is a new insurance agent. She is confused about the
regulatory authorities in the insurance industry and asks her
supervisor to clarify a few points for her.
Who licenses and regulates agents and insurance agencies?
1. Office of the Superintendent of Financial Institutions (OFSI)
2. Canadian Insurance Services Regulatory Organizations (CISRO)
3. Canadian Council of Insurance Regulators (CCIR)
4. Each separate provincial and territorial insurance regulator
Answer: 4. Each separate provincial and territorial insurance
regulator
, ◉ Suhana wants to know if she can become a life insurance agent
while also having another occupation.
Which of the following occupations are considered restricted
occupations with regard to selling life insurance?
1. Police officer
2. Securities broker
3. Mortgage broker
4. Real estate agent
Answer: 1. Police officer
◉ Clarence is training to become an insurance agent and was told it
is important that he understand all aspect of public insurance and
retirement programs and monitor changes to such programs. Which
of the following best describes why this is important for him to
understand?
1. To ensure his clients have adequate retirement income to support
their insurance costs.
2 - To be able to complete a full financial plan for each client.
3 - To try and overlap benefits in order to collect double payments
where possible under a privately sponsored health plan.
4 - So any needs analysis or advice provided takes into account
relevant information.
Answer: 4 - So any needs analysis or advice provided takes into
account relevant information.
