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Questions and Answers
What is the primary role of a provincial or territorial governing body in the context of life insurance agents?
What is the primary role of a provincial or territorial governing body in the context of life insurance agents?
Which of the following is NOT explicitly mentioned as a requirement for obtaining a life insurance agent license?
Which of the following is NOT explicitly mentioned as a requirement for obtaining a life insurance agent license?
Which of these best describes a 'client' according to the text?
Which of these best describes a 'client' according to the text?
What is generally required for the renewal of a life insurance agent's license?
What is generally required for the renewal of a life insurance agent's license?
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Which of the following best describes the term 'agency' as defined in the provided text?
Which of the following best describes the term 'agency' as defined in the provided text?
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According to the provided information, what is the first step in the problem solving process?
According to the provided information, what is the first step in the problem solving process?
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What is the final step, according to the text, in the problem-solving process?
What is the final step, according to the text, in the problem-solving process?
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Which of the following actions is explicitly defined as cheating?
Which of the following actions is explicitly defined as cheating?
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According to the information, what activity constitutes 'collusion' during an exam?
According to the information, what activity constitutes 'collusion' during an exam?
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What is the act of modifying an exam paper without authorization defined as?
What is the act of modifying an exam paper without authorization defined as?
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Which of the following actions is identified as a form of cheating related to test content?
Which of the following actions is identified as a form of cheating related to test content?
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What action is considered cheating relating to external assistance?
What action is considered cheating relating to external assistance?
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Which action constitutes an attempt to gain an unfair advantage through bribery?
Which action constitutes an attempt to gain an unfair advantage through bribery?
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Which of the following is NOT a typical aspect of fact gathering in ethical decision-making?
Which of the following is NOT a typical aspect of fact gathering in ethical decision-making?
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Which approach is primarily concerned with selecting the option that minimizes harm and maximizes good for all parties involved?
Which approach is primarily concerned with selecting the option that minimizes harm and maximizes good for all parties involved?
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The 'Rights Approach' is most fundamentally concerned with protecting which of the following?
The 'Rights Approach' is most fundamentally concerned with protecting which of the following?
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Which approach requires treating all individuals equally, regardless of personal characteristics?
Which approach requires treating all individuals equally, regardless of personal characteristics?
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What is the primary issue Marcus is facing?
What is the primary issue Marcus is facing?
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Which approach is based on the concept that all people should be actively contributing to the welfare of a community?
Which approach is based on the concept that all people should be actively contributing to the welfare of a community?
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What is a key focus of the 'Virtue Approach' when making decisions?
What is a key focus of the 'Virtue Approach' when making decisions?
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Why might disclosing travel plans be problematic for Marcus’ clients?
Why might disclosing travel plans be problematic for Marcus’ clients?
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What principle is given precedence over loyalty in the financial industry, as mentioned in the provided context?
What principle is given precedence over loyalty in the financial industry, as mentioned in the provided context?
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What is one risk of recommending that the clients wait until after their trip to apply for insurance?
What is one risk of recommending that the clients wait until after their trip to apply for insurance?
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What is a potential consequence if clients submit their insurance application disclosing their travel plans?
What is a potential consequence if clients submit their insurance application disclosing their travel plans?
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When evaluating options for an ethical dilemma, advisors should consider which time perspective according to the text?
When evaluating options for an ethical dilemma, advisors should consider which time perspective according to the text?
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Why is not mentioning the clients' travel plans in their insurance application considered unethical?
Why is not mentioning the clients' travel plans in their insurance application considered unethical?
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Which of the following actions should Marcus take before making any recommendations?
Which of the following actions should Marcus take before making any recommendations?
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According to the content, what is the potential risk of recommending not disclosing travel plans?
According to the content, what is the potential risk of recommending not disclosing travel plans?
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What is a key ethical consideration Marcus must keep in mind?
What is a key ethical consideration Marcus must keep in mind?
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Which of the following best describes an advisor's duty of good faith?
Which of the following best describes an advisor's duty of good faith?
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What action is an advisor required to take regarding the suitability of a product for a client?
What action is an advisor required to take regarding the suitability of a product for a client?
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What is an essential requirement for illustrations used by advisors?
What is an essential requirement for illustrations used by advisors?
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An advisor is placing their client's insurance through another agent, what must they do?
An advisor is placing their client's insurance through another agent, what must they do?
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Which of the following best characterizes the ethical use of the term 'guaranteed' by an advisor?
Which of the following best characterizes the ethical use of the term 'guaranteed' by an advisor?
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Why is an advisor's conduct outside of their professional activities relevant to their licensing?
Why is an advisor's conduct outside of their professional activities relevant to their licensing?
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How should an advisor handle any additional fees charged beyond the policy premium?
How should an advisor handle any additional fees charged beyond the policy premium?
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Which of the following actions is a violation of an advisor's duty to act with integrity?
Which of the following actions is a violation of an advisor's duty to act with integrity?
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When is it acceptable for a financial advisor to not prioritize the client's interests first?
When is it acceptable for a financial advisor to not prioritize the client's interests first?
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What is the primary purpose of consulting with a colleague in the financial industry when facing an ethical dilemma?
What is the primary purpose of consulting with a colleague in the financial industry when facing an ethical dilemma?
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What does the 'Smell Test' primarily rely on for ethical decision-making?
What does the 'Smell Test' primarily rely on for ethical decision-making?
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What is the key question asked in 'The Front Page Test'?
What is the key question asked in 'The Front Page Test'?
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What is the core principle behind 'The Mom Test'?
What is the core principle behind 'The Mom Test'?
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Once a decision is made, what is a key post-decision step an advisor should take?
Once a decision is made, what is a key post-decision step an advisor should take?
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According to the content, what is one of the most important considerations when making an ethical decision?
According to the content, what is one of the most important considerations when making an ethical decision?
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What is the most appropriate approach to decision-making in ethical dilemmas after analyzing all of the information?
What is the most appropriate approach to decision-making in ethical dilemmas after analyzing all of the information?
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Study Notes
Canadian Ethics Course for Life Insurance Agents
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The course covers ethical conduct for life insurance agents in Canada.
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The publisher is Oliver Publishing Inc. with contact information provided.
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The copyright is 2023.
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The book aims to provide accurate and current information about ethical conduct, but cannot guarantee specific course results; it does not provide investment, tax, or legal advice.
Table of Contents
- Includes topics on consequences of cheating, learning objectives, competencies, key terms, licensing, ethical practice, competence, objectivity, disclosure, integrity, confidentiality, licensee responsibilities, reporting to provincial/territorial associations, confidentiality of customer information, referral fees, proper books and records, steps to ethical decision making, applying the steps, etc.
Consequences of Cheating
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WFGIA defines cheating as failing to act with honesty and integrity in any exam.
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Actions that are considered cheating include copying, using unauthorized materials, collaborating with others, collusion (sharing computer screens), falsification, and knowingly stealing/using exam materials.
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Taking photos, sharing questions with others, or attempting to bribe an instructor are also viewed as forms of cheating.
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Any use of technology to receive answers remotely also constitutes cheating.
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Consequences can range from disciplinary measures to termination from WFGIA.
Learning Objectives
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The course aims to teach professionalism, integrity, and objectivity for financial advisors.
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Upon completion, students can apply ethical principles in conflict situations, demonstrate best practices, and understand licensee responsibilities.
Competencies
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Competency 1: Maintaining a competent, financially reliable and regulated insurance practice.
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Competency 2: Advising clients, insurers, and public objectively and honestly.
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Competency 3: Disclosing relevant facts including conflicts of interest, quantitative/qualitative info, compensation structure and fees.
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Competency 4: Maintaining integrity while interacting with insurers and clients.
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Competency 5: Protecting client confidentiality.
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Competency 6: Exercising and behaving ethically in all situations.
Key Terms
- Defines terms like agency, client, licensee, person, principal, and transaction in the context of the insurance industry.
Licensing
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Each province/territory has its own governing body for overseeing licensing and renewal of life insurance agents.
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Harmonized LLQP courses and additional requirements are essential (criminal record check, supervision/sponsorship, professional liability insurance, probationary period, and administrative fees).
Ethical Practice
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The key principles are competence, objectivity, disclosure, integrity, and confidentiality.
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Advisors should maintain professional standards by applying their knowledge, safeguarding funds, and disclosing fees and material facts.
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Objective behaviour, honesty, and sincerity are essential when advising clients.
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A thorough client analysis, respecting client interests, avoiding conflicts of interest and remaining faithful to duties/obligations are critical.
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Confidentiality of client information and personal/business details is paramount.
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Advisors must act with trustworthiness, honesty, reliability in their professional dealings and ensure that clients are treated fairly.
Ethical Conduct
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Advisors must act with competence, follow regulations and financial reliability.
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They must act in the best interest of the client and uphold confidentiality.
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Advisors are responsible for safekeeping and promptly handling funds per industry standards.
Client Communication
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Advisors must maintain ongoing communication with clients including relevant policy facts, issues, and changes.
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Policy details, costs, and fees must be disclosed clearly and transparently.
Record Keeping
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Proper records of communication, transactions, and financial affairs must be maintained.
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Compliance includes documentation of all communications and client interactions, and appropriate handling of funds.
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Description
Test your knowledge on the roles and requirements of life insurance agents, including licensing, client definitions, and ethical standards. This quiz covers essential concepts relevant to provincial and territorial governing bodies.