IFSE Institute Life License Qualification Program (LLQP) LLQP Question # 46 Topic 5 Discussion
LLQP Exam Topic 5 Question 46 Discussion:
Question #: 46
Topic #: 5
Pierre is an insurance of persons representative. His new client, Carole, wishes to buy life insurance but wants to know everything about life insurance products before making a choice. What are Pierre’s responsibilities in this case?
A.
Pierre must describe the products he offers to Carole and explain the coverage offered. He must clearly indicate and explain the coverage exclusions
B.
Pierre can simply give Carole the insurer’s explanatory brochures providing details on the products. He must avoid giving explanations so as not to influence Carole
C.
Pierre must have a conference call with the insurer and Carole so that she can ask the insurer any questions she may have
D.
Pierre must ask Carole to put all her questions in writing and send them to the insurer
Comprehensive and Detailed In-Depth Explanation: Under the Distribution Act (Sections 16–18), insurance representatives like Pierre have a duty to act in the client’s best interest by providing clear, accurate information about products, including coverage and exclusions. This aligns with the LLQP’s emphasis on needs-based advising and the Civil Code’s requirement of good faith (Article 1375). Option A correctly outlines Pierre’s responsibility to explain products and exclusions, ensuring Carole makes an informed decision. Option B (handing over brochures without explanation) fails to meet the proactive advisory role mandated by the Ethics and Professional Practice manual, risking misunderstanding. Option C (conference call) is impractical and shifts Pierre’s duty to the insurer. Option D (written questions to the insurer) similarly avoids Pierre’s obligation to directly assist Carole. The manual stresses full disclosure and client education, making A the ethical and legal standard.
[References: Distribution Act, Sections 16–18; Civil Code of Quebec, Article 1375; Ethics and Professional Practice (Civil Law) Manual, Section on Client Disclosure., ===========, ]
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