LLQP (Life Licence Qualification Program) Practice Exam · Question
During a client needs analysis, an insurance advisor identifies that a client would benefit from a product that the advisor is not licensed to sell. What is the advisor's ethical obligation in this situation?
Advisors have a fiduciary duty to act in the best interest of their clients. If they cannot meet a client's needs due to licensing restrictions, the ethical and
Start free practice for LLQP (Life Licence Qualification Program) Practice Exam
374 questions · no signup required · 40 free questions per day
Question: During a client needs analysis, an insurance advisor identifies that a client would benefit from a product that the advisor is not licensed to sell. What is the advisor's ethical obligation in this situation?
Answer options: ✅ Refer the client to an appropriately licensed professional.
- Attempt to obtain a license for that product quickly to serve the client.
- Recommend an alternative product that the advisor is licensed to sell, even if it's not the best fit.
- Advise the client to seek information independently without providing recommendations.
Correct answer: Refer the client to an appropriately licensed professional.
Explanation: Advisors have a fiduciary duty to act in the best interest of their clients. If they cannot meet a client's needs due to licensing restrictions, the ethical and professional obligation is to refer the client to a qualified professional who can provide the appropriate advice and products, ensuring the client receives the best possible service.
Start free practice for LLQP (Life Licence Qualification Program) Practice Exam
374 questions · no signup required · 40 free questions per day
More about LLQP (Life Licence Qualification Program) Practice Exam
Related Questions
- A life insurance policy that offers lifelong coverage, a guaranteed death benefit, and a savings component tha
- Group benefits in Canada commonly include:
- Sarah, a 35-year-old marketing professional in Ontario, purchases a participating whole life insurance policy
- Mark, a 45-year-old business owner in British Columbia, has a Universal Life policy with a Level Cost of Insur
- A personal non-registered permanent life insurance policy on Liam, a 40-year-old engineer in Montreal, has acc
- Universal life is:
More for LLQP (Life Licence Qualification Program) Practice Exam candidates
Study guides
Question explanations
- A life insurance policy that offers lifelong coverage, a guaranteed death benefit, and a savings component tha
- Group benefits in Canada commonly include:
- Sarah, a 35-year-old marketing professional in Ontario, purchases a participating whole life insurance policy
- Mark, a 45-year-old business owner in British Columbia, has a Universal Life policy with a Level Cost of Insur
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free LLQP (Life Licence Qualification Program) Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.