100+ Free LLQP Ethics Practice Questions

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2026 Statistics

Key Facts: LLQP Ethics Exam

25 scored questions

The Common Law Ethics module exam has 25 scored items plus 5 unscored pilot questions

Durham College / CISRO LLQP exam format

60%

Passing score required on each LLQP module, including Ethics and Professional Practice

FCNB / FSRA LLQP exam information

75 minutes

Time allowed for the provincial Ethics and Professional Practice module exam

Durham College LLQP exam format

Open book

Candidates may consult the approved CISRO reference manual during the exam

FCNB Life Licence Qualification Program

4 modules

Ethics and Professional Practice is one of the four harmonized LLQP exam modules

CISRO harmonized LLQP curriculum

Common Law

This version applies in all provinces and territories except Quebec, which uses the Civil Code version

CISRO / CSI LLQP curriculum

About CAD 84

Approximate Durham College online exam fee per module attempt

Durham College LLQP exam fees (2025)

100

Free original practice questions here

OpenExamPrep

Ethics and Professional Practice (Common Law) is one of four LLQP modules for licensing life and accident-and-sickness insurance agents in Canada, governed by CISRO and administered by Durham College. The provincial module exam has 25 scored multiple-choice questions plus 5 unscored pilot questions, runs 75 minutes, and requires 60% to pass. It is an open-book exam in which candidates may consult the approved CISRO reference manual. The module covers the legal and regulatory framework, agent duties and conflicts of interest, privacy and PIPEDA, anti-money laundering (FINTRAC/PCMLTFA), disclosure and errors-and-omissions liability. This 100-question bank provides original practice modelled on the harmonized Common Law competency.

Sample LLQP Ethics Practice Questions

Try these sample questions to test your LLQP Ethics exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which national body developed the harmonized Life Licence Qualification Program (LLQP) curriculum and design document used across common law provinces?

A.The Canadian Insurance Services Regulatory Organizations (CISRO)

B.The Office of the Superintendent of Financial Institutions (OSFI)

C.The Financial Consumer Agency of Canada (FCAC)

D.The Investment Industry Regulatory Organization of Canada

Explanation: CISRO, the Canadian Insurance Services Regulatory Organizations, developed and maintains the harmonized LLQP curriculum and competency profile used nationally. It coordinates the design document that lists the knowledge required for licensing.

2In most common law provinces, who is primarily responsible for licensing individual life insurance agents and handling discipline?

A.The federal Department of Finance

B.The provincial insurance regulator or insurance council

C.The agent's sponsoring insurer

D.The Canada Revenue Agency

Explanation: Insurance is regulated provincially. Each province's insurance regulator or insurance council issues agent licences, sets conduct rules and administers discipline for agents operating in that jurisdiction.

3An agent licensed in Ontario wants to sell life insurance to a client who lives in Manitoba. What does the agent generally need first?

A.Nothing further; an Ontario licence is valid nationwide

B.A licence or authorization to operate in Manitoba

C.Federal approval from OSFI

D.Written consent from the client's bank

Explanation: Insurance licensing is provincial, so an agent must be licensed (or hold a non-resident authorization) in each province where they conduct insurance business. Selling to a Manitoba resident requires Manitoba authorization.

4Assuris is best described as the organization that protects Canadian policyholders by:

A.Reimbursing agents for errors and omissions claims

B.Providing protection if a member life insurance company becomes insolvent

C.Licensing life insurance agents

D.Investigating consumer complaints against agents

Explanation: Assuris is the not-for-profit organization that protects policyholders if their life insurance company fails, guaranteeing specified portions of benefits and values. Membership is mandatory for life insurers in Canada.

5The OmbudService for Life and Health Insurance (OLHI) primarily helps consumers by:

A.Guaranteeing policy benefits when an insurer fails

B.Providing an independent complaint-resolution service for unresolved life and health insurance complaints

C.Setting the LLQP curriculum

D.Auditing insurers' solvency

Explanation: OLHI is a free, independent complaint-resolution service that helps consumers with concerns about life and health insurance products and services after they have exhausted the insurer's internal process.

6A life insurance agent lets their provincial licence lapse but continues to meet new prospects and complete insurance applications. This conduct is:

A.Acceptable as long as the insurer still appoints them

B.Prohibited; transacting insurance without a valid licence is an offence

C.Acceptable for existing clients only

D.Acceptable if the agent renews within 90 days

Explanation: An agent must hold a valid licence to transact insurance. Soliciting or completing applications while unlicensed is an offence that can lead to fines and disqualification, regardless of insurer appointment.

7Which level of government has primary constitutional authority over the regulation of the insurance contract and licensing of agents in Canada?

A.The federal government exclusively

B.The provincial and territorial governments

C.Municipal governments

D.International treaty bodies

Explanation: Under Canada's constitution, the regulation of the insurance contract and the licensing of agents falls primarily within provincial jurisdiction, which is why each province has its own insurance act and regulator.

8An agent is found to have provided false information on a licence renewal application. The provincial regulator can most appropriately:

A.Take no action because renewals are routine

B.Impose disciplinary measures such as a fine, suspension or revocation of the licence

C.Refer the matter only to the police

D.Require the insurer to discipline the agent instead

Explanation: Providing false information to a regulator is a conduct breach. The regulator has statutory power to discipline agents, including fines, conditions, suspension or revocation of the licence.

9Errors and omissions (E&O) insurance for a life insurance agent is designed to:

A.Pay death benefits to the agent's clients

B.Protect the agent against liability claims arising from negligent acts, errors or omissions in their professional services

C.Cover the agent's office property

D.Replace the agent's income if they become disabled

Explanation: E&O insurance is professional liability coverage. It protects the agent against claims that they were negligent or made an error or omission in advising or servicing a client, which is why most regulators require it.

10Most provincial regulators require a licensed life insurance agent to carry which of the following at all times while licensed?

A.A registered education savings plan

B.Errors and omissions (E&O) insurance

C.A securities dealer registration

D.Membership in a labour union

Explanation: Maintaining valid E&O insurance is a common licensing condition because it protects consumers if an agent's negligence causes loss. Failing to keep it in force can lead to licence suspension.

About the LLQP Ethics Exam

Ethics and Professional Practice is one of the four modules of the harmonized Life Licence Qualification Program (LLQP), the national entry-level qualification for life and accident-and-sickness insurance agents in Canada. The harmonized LLQP is governed by the Canadian Insurance Services Regulatory Organizations (CISRO), and the provincial module exams are administered by Durham College. The Common Law version of the Ethics module applies in every province and territory except Quebec, which uses a separate Civil Code version. The module develops an ethical professional practice and covers the legal and regulatory framework governing insurance, the roles of regulators and consumer-protection bodies, professional conduct and conflicts of interest, privacy law (PIPEDA), the Do Not Call List, anti-money-laundering rules (FINTRAC/PCMLTFA), disclosure obligations and errors-and-omissions liability. The provincial exam is open-book: candidates may consult the approved CISRO reference manual during the exam.

Assessment

Provincial Ethics and Professional Practice (Common Law) exam: 25 scored multiple-choice questions plus 5 unscored pilot questions (30 items total). Four options per question with exactly one correct answer.

Time Limit

75 minutes for the Ethics and Professional Practice module exam.

Passing Score

60% (you must answer at least 60% of the 25 scored questions correctly). Pilot questions do not count toward your result.

Exam Fee

About CAD 84 for the online (virtual) exam and CAD 66 to CAD 95 for an in-person paper exam depending on province, charged per module attempt; rewrites incur additional fees. (Durham College on behalf of CISRO and provincial insurance regulators)

LLQP Ethics Exam Content Outline

30%

Legal and Regulatory Framework Governing Insurance

Covers the roles of CISRO and provincial regulators and insurance councils, agent licensing and registration requirements, the structure of insurance regulation in Canada, supervisory and disciplinary powers, and the laws governing the conduct of life and accident-and-sickness agents.

30%

Ethics, Professional Conduct and Conflicts of Interest

Covers professional values, duties of honesty, competence, diligence and good faith, suitability and needs-based selling, managing and disclosing conflicts of interest, tied selling, replacement and churning rules, and avoiding misrepresentation or undue pressure.

20%

Privacy, Consumer Protection and Disclosure

Covers PIPEDA and provincial privacy law, consent and safeguarding of personal information, the National Do Not Call List, consumer-protection organizations such as Assuris and OmbudService for Life and Health Insurance (OLHI), required disclosures, and fair treatment of customers.

20%

Anti-Money Laundering and Compliance Obligations

Covers FINTRAC and the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, client identification and verification, suspicious-transaction and large-cash reporting, errors-and-omissions (E&O) insurance and liability, record-keeping, and an agent's compliance responsibilities.

How to Pass the LLQP Ethics Exam

What You Need to Know

Passing score: 60% (you must answer at least 60% of the 25 scored questions correctly). Pilot questions do not count toward your result.
Assessment: Provincial Ethics and Professional Practice (Common Law) exam: 25 scored multiple-choice questions plus 5 unscored pilot questions (30 items total). Four options per question with exactly one correct answer.
Time limit: 75 minutes for the Ethics and Professional Practice module exam.
Exam fee: About CAD 84 for the online (virtual) exam and CAD 66 to CAD 95 for an in-person paper exam depending on province, charged per module attempt; rewrites incur additional fees.

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

LLQP Ethics Study Tips from Top Performers

1Learn the roles of the key bodies cold: CISRO (harmonized rules), provincial regulators and insurance councils (licensing and discipline), FINTRAC (money laundering), Assuris (policyholder protection if an insurer fails) and OLHI (consumer complaints).

2Because the exam is open book, practise finding rules quickly in the reference manual rather than memorizing everything; know where each topic lives so you can confirm answers under time pressure.

3Focus on applying ethical rules to scenarios. Many questions describe an agent facing a conflict of interest, a privacy issue or a suspicious transaction and ask for the correct professional action.

4Know the privacy chain under PIPEDA: collect only what you need, get informed consent, use information only for the stated purpose, safeguard it, and respect Do Not Call List rules when prospecting.

5Memorize the anti-money-laundering basics: verify client identity, watch for red flags, and report suspicious transactions to FINTRAC. Tipping off a client that a report was filed is prohibited.

6Review disclosure and replacement rules, errors-and-omissions liability, and the duty to recommend suitable products; these recurring themes connect ethics to day-to-day agent practice.

Frequently Asked Questions

How many questions are on the LLQP Ethics and Professional Practice exam?

The provincial Common Law Ethics and Professional Practice exam has 25 scored multiple-choice questions plus 5 unscored pilot questions, for 30 items in total. Only the 25 scored questions count toward your result.

How long is the LLQP Ethics module exam and what score do I need?

You have 75 minutes for the Ethics and Professional Practice module exam, and you need to score at least 60% on the scored questions to pass.

Is the LLQP Ethics exam open book?

Yes. The harmonized LLQP provincial exams are open book. Candidates are provided the approved CISRO reference manual as an e-book or PDF and may consult it during the exam, but no other resources are allowed.

What is the difference between the Common Law and Civil Code Ethics modules?

The Common Law version applies in every province and territory except Quebec and is the one most candidates write. Quebec uses a separate Civil Code (Civil Law) Ethics module that reflects Quebec's distinct legal system.

Who governs and administers the LLQP Ethics exam?

The harmonized LLQP is governed nationally by CISRO, the Canadian Insurance Services Regulatory Organizations. The provincial module exams are administered by Durham College on behalf of provincial regulators and insurance councils.

Are these official CISRO or Durham College questions?

No. These are original OpenExamPrep practice questions modelled on the harmonized Common Law Ethics competency. CISRO publishes a small set of official sample questions, and your course provider supplies the official study manual and certification exam.