WFG Ethics notes Exam Questions and Answers with Verified
Solutions | Latest 2026 Update
Q: Competence
Answer:
Advisors must:
Conduct all insurance activities in a competent manner; meaning that they must
apply their knowledge and skill in a manner consistent with the usual practice of
the business of insurance in the circumstances;
Be diligent and financially reliable; meaning they can be relied upon to properly
safeguard and account for money and property entrusted to them, and to promptly
deliver them in accordance with the circumstances;
Conduct outside their professional life, such as outstanding judgments, pending
legal proceedings, and bankruptcies, may reflect on their financial reliability;
Adhere to the continuing education requirements;
Follow the anti-money laundering procedures when completing insurance
business; and
Refrain from giving advice in areas beyond expertise as an insurance licensee.
Q: Objectivity
Answer:
Advisors must:
Be objective, honest and sincere when advising clients on services and products;
Complete an analysis of the client's needs and the product's suitability for their
situation;
Act in a manner consistent with the client's or principal's best interests;
Remain faithful to their duties and obligations as an insurance licensee;
Provide a duty of good faith to insurers, insureds, fellow licensees, regulatory
bodies, and the public; and
Disclose all material information.
Q: Disclosure
Answer:
Advisors must:
, Inform clients on all aspects of the insurance products they purchase, including any
changes that occur during the term of the policies;
Ensure illustrations include prices, value and benefits clearly and fairly with
disclosure of amounts that are not guaranteed; ● Make full and fair disclosure of all
material facts to enable clients to make informed decisions regarding their
insurance;
0 0 Disclose any fees charged in addition to the policy premium; ● Use sales
materials or illustrations that are clear and straightforward to avoid misleading or
deceiving clients;
Not use terms such as "guaranteed" without appropriate qualification or evidence
to support the statement;
Inform the client of arrangements to place the client's insurance through another
agent;
Fully and accurately disclose any information material to the insurer's decision to
issue a contract of insurance; and
Inform the insurer when placing insurance on behalf of another agent who is acting
for the insured.
Q: Integrity
Answer:
Advisors must
Be trustworthy and conduct all professional activities with reliability, and honesty;
Behaviour outside the professional context can also reflect on trustworthiness and
call into question suitability to hold an insurance licence.
Engage in fair competition so clients can access the products and services they
need at reasonable prices;
Deal effectively with client concerns, objectives and concerns; and
Never discriminate based on a client's age, gender, marital status, ethnic origin,
physical or mental disability, religion, sexual orientation or socioeconomic status.
Q: Confidentiality
Answer:
Advisors must:
Hold in strict confidence all information acquired in the course of the professional
relationship concerning the personal and business affairs of a client; and
Solutions | Latest 2026 Update
Q: Competence
Answer:
Advisors must:
Conduct all insurance activities in a competent manner; meaning that they must
apply their knowledge and skill in a manner consistent with the usual practice of
the business of insurance in the circumstances;
Be diligent and financially reliable; meaning they can be relied upon to properly
safeguard and account for money and property entrusted to them, and to promptly
deliver them in accordance with the circumstances;
Conduct outside their professional life, such as outstanding judgments, pending
legal proceedings, and bankruptcies, may reflect on their financial reliability;
Adhere to the continuing education requirements;
Follow the anti-money laundering procedures when completing insurance
business; and
Refrain from giving advice in areas beyond expertise as an insurance licensee.
Q: Objectivity
Answer:
Advisors must:
Be objective, honest and sincere when advising clients on services and products;
Complete an analysis of the client's needs and the product's suitability for their
situation;
Act in a manner consistent with the client's or principal's best interests;
Remain faithful to their duties and obligations as an insurance licensee;
Provide a duty of good faith to insurers, insureds, fellow licensees, regulatory
bodies, and the public; and
Disclose all material information.
Q: Disclosure
Answer:
Advisors must:
, Inform clients on all aspects of the insurance products they purchase, including any
changes that occur during the term of the policies;
Ensure illustrations include prices, value and benefits clearly and fairly with
disclosure of amounts that are not guaranteed; ● Make full and fair disclosure of all
material facts to enable clients to make informed decisions regarding their
insurance;
0 0 Disclose any fees charged in addition to the policy premium; ● Use sales
materials or illustrations that are clear and straightforward to avoid misleading or
deceiving clients;
Not use terms such as "guaranteed" without appropriate qualification or evidence
to support the statement;
Inform the client of arrangements to place the client's insurance through another
agent;
Fully and accurately disclose any information material to the insurer's decision to
issue a contract of insurance; and
Inform the insurer when placing insurance on behalf of another agent who is acting
for the insured.
Q: Integrity
Answer:
Advisors must
Be trustworthy and conduct all professional activities with reliability, and honesty;
Behaviour outside the professional context can also reflect on trustworthiness and
call into question suitability to hold an insurance licence.
Engage in fair competition so clients can access the products and services they
need at reasonable prices;
Deal effectively with client concerns, objectives and concerns; and
Never discriminate based on a client's age, gender, marital status, ethnic origin,
physical or mental disability, religion, sexual orientation or socioeconomic status.
Q: Confidentiality
Answer:
Advisors must:
Hold in strict confidence all information acquired in the course of the professional
relationship concerning the personal and business affairs of a client; and
