LLQP Professional Conduct & Fair Treatment Practice Questions
Professional Conduct & Fair Treatment makes up 6 of every 50 questions on a Tigertest LLQP practice test. Here are 10 of the 24 questions on it, each with the answer and the reason.
Updated by the Tigertest team. Based on the harmonized LLQP's four modules, Canadian law and CCIR/CISRO guidance as of November 2026. Original questions; 50 per test, mixing the modules in proportion. Not affiliated with CISRO, any provincial regulator or the AMF.
1. Under the CCIR/CISRO Fair Treatment of Customers guidance, advice must be based on:
- A.The cheapest product available to them
- B.The client's needs and situation
- C.The agent's highest commission
- D.The insurer's sales targets
Answer: B. Fair treatment puts the customer's interests first: recommendations must fit the needs identified, with clear disclosure.
2. Before recommending a product, an agent must first:
- A.Complete the application
- B.Collect the first premium
- C.Quote the premium
- D.Do a needs analysis
Answer: D. Knowing the client (finances, goals, family, risk tolerance) comes before any recommendation, and the analysis is documented.
3. A client is told her old policy "has no value left", which is untrue, so that she will switch to a new insurer. The agent is guilty of:
- A.Twisting
- B.Tied selling
- C.Rebating
- D.Churning
Answer: A. Twisting is inducing a replacement through misrepresentation or an incomplete comparison. It is prohibited in every province.
4. An agent repeatedly replaces a client's policies mainly to earn new first-year commissions. This is:
- A.Rebating
- B.Rescinding
- C.Churning
- D.Twisting
Answer: C. Churning is excessive replacement for the agent's gain; the client pays new charges and may lose benefits.
5. An agent promises to pay a client's first three monthly premiums out of his own pocket if she signs today. This inducement is:
- A.Twisting
- B.Defamation
- C.Rebating
- D.Churning
Answer: C. Rebating is giving a client a benefit not stated in the policy to induce the sale. It is prohibited or restricted in most provinces; rules vary in Quebec and elsewhere.
6. When an agent recommends replacing an existing life policy, the agent must:
- A.Give a written comparison
- B.Get the old insurer's approval
- C.Avoid mentioning the old policy
- D.Cancel the old policy first
Answer: A. Replacement rules require a disclosure that compares the old and new policies (premiums, surrender charges, new contestable period) so the client decides with full information. Forms vary in Quebec.
7. A key risk to point out when a client replaces an older policy is that:
- A.The old insurer must pay the client a fee
- B.The old cash value doubles
- C.Premiums usually fall to zero
- D.A new contestable period starts
Answer: D. A new policy restarts the two-year contestable and suicide periods, and may cost more at the client's higher age.
8. An agent earns a higher commission on one insurer's product than another. Under the guidance, the agent should:
- A.Let the client guess at it
- B.Disclose the conflict to the client
- C.Never mention commissions at all
- D.Refuse to sell either of the products
Answer: B. Conflicts of interest, including compensation that could influence advice, must be disclosed and managed so they do not override the client's interests.
9. A client asks an agent to backdate an application to get a lower age rate without the insurer's knowledge. The agent should:
- A.Ask a colleague to sign it
- B.Refuse, as it misrepresents
- C.Agree if the client pays more
- D.Agree for a short backdate
Answer: B. Falsifying an application is misrepresentation and can void coverage and cost the agent the licence. Legitimate backdating is done only by the insurer within its own rules.
10. Requiring a client to buy life insurance as a condition of getting another product is:
- A.A conversion privilege
- B.A suitability review
- C.A normal package discount
- D.Coercive tied selling
Answer: D. Tied selling forces a purchase as a condition of another service and is prohibited. Offering a voluntary bundle discount is different.
Practice all 24 professional conduct & fair treatment questions, and the rest of the 200-question bank, in the free LLQP training sets. Questions you miss come back until you have mastered them.
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