Life Insurance and Accident and Sickness Agent’s Code of Conduct Quiz

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Instructions:

Read each question and select the best option.
When all questions have been answered, a rationale for the correct answer will appear.
The quiz is based on the Code of Conduct. The Code can be referenced during the Quiz.
If you score less than 100%, you must retake the quiz from the beginning.
Remember, you can take this test as many times as you wish.
Once you have passed the quiz, print a copy of the Certificate of Completion and file it for future verification.
If you wish to apply continuing education credits for licensing, enter the credit information under Continuing Education Information, found in the far left column under "Licence Holders".

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L. A. Zee is familiar with the Code of Conduct and therefore knows that an agent is not required to disclose information requested by the client with respect to...*

how much income the agent earned last year from sales and service of insurance products.

how the agent will be compensated for the client’s business.

the name of the agent’s employer.

the names of insurers with which the agent has contracts or places business.

In his insurance practice, John Slacker ensures that he meets the requirements of the Code of Conduct by...*

requesting insurance investment products on a conservative basis automatically.

reviewing written comparisons of available insurance, including coverage and price, with his clients.

selling term insurance policies to all his new clients because they are cheaper than whole life policies.

providing his clients with examples or illustrations based on favorable historical returns.

Stu Dent has held a full level life and accident and sickness agent’s licenses in Manitoba since 1965 and has completed courses which have earned him a number of professional designations. This week he received a letter from the Insurance Council outlining allegations that he is in violation of The Insurance Act’s Code of Conduct. Mr. Dent knows that these allegations are false. Mr. Dent...*

should contact the person who filed the complaint requesting that the allegations of wrongdoing be withdrawn.

can provide his comments but he does not have any documents or correspondence because they have been shredded for privacy reasons.

must provide a complete and full response to Council regarding the allegations including documentation to support his position.

must respond to Council but any policy documentation or correspondence cannot be provided as it is protected by client-agent privacy.

should respond to Council simply stating that the allegations are false.

Which of the following is correct with respect to the Life Insurance Replacement Declaration (LIRD)?*

The LIRD must be signed by the revocable beneficiary, in addition to, the policyowner(s) and the agent.

The LIRD consists of a one page double-sided form including the names and addresses of the regulatory bodies.

To prevent the policyowners from having an excessive limit of insurance and duplicate premium payments, the LIRD states that the policyowner should cancel the existing policy immediately upon completing an application for a replacing insurance policy.

Four copies of the completed LIRD are required: one for the existing insurance company, one for the replacing insurance company, one for the policyowner, and one for the agent.

The Insurance Council of Manitoba has issued a licence in the registered name and trade name of Guaranteed Future Insurance Inc. Which of the newspaper ads, to be used in the fall sales campaign, is compliant?*

Guaranteed Future wants to help you retire at 55.

For all your insurance needs, contact Guaranteed Future Insurance at 204-888-4444.

Visit a Guaranteed Financial office near you.

Call Guaranteed Future Insurance Inc. for a free insurance quote.

Dudley Dewright has a number of new leads which he hopes to turn into sales. Which of the following should Mr. Dewright consider?*

Mr. Dewright’s client advises that he is a business owner operating under the name of Hardware Importers/Exporters Ltd. and he sells weapons to international interest groups.

Mr. Dewright’s client meets with the agent at the client’s home to discuss the purchase of a policy on the client’s newborn son.

A potential client suggests that because the client’s partner is presently out of town and for the sake of expediency, Mr. Dewright can complete the application for life insurance for his business partner over the telephone and the client will take the application to his partner for signature.

A client hands Mr. Dewright a bag of cash containing $3,000.00 and requests that the money be placed in a universal life policy.

Mary Perfecto prides herself on her knowledge of insurance policy replacement. Which of the following statements will Mary identify as being correct?*

When a policyowner is considering whether or not to replace an existing policy in connection with a new application, but is not certain, the agent is not required to complete replacement documents.

Replacement documents must be completed in full before or at the time a replacement policy is delivered.

The Life Insurance Replacement Declaration (LIRD) is not the only document required to comply with the Code of Conduct’s prescribed forms for replacement.

The agent can rely on the verbal, in-force policy information provided by the policyowner where no policy documents are available.

A. Gent has received a complaint letter from his life and disability client. The client had a disability claim denied by the insurance company. However, the client does not believe that the company adjuster had all the relevant information needed to make an accurate assessment and wants someone in a more senior position to review the information. A. Gent*

must contact his professional liability insurer because this is formal notice of a professional liability claim.

must refer the client to the insurance company representative in a timely manner.

can ignore this letter because the insurance company has denied the claim.

should refer the client to the Insurance Council of Manitoba.

The Life Insurance and Accident and Sickness Agent’s Code of Conduct addresses Professionalism. The Code requires agents to...*

maintain financial records.

keep up-to-date on changes to insurance regulations that affect their ability to provide high standards of client service.

keep financial records, have adequate finances to compensate clients for errors and omissions losses, and have current knowledge of insurance regulations.

have adequate financial resources to compensate clients for losses resulting from the agent’s error, omission or fraudulent activity.

Lee Wrench successfully uses referrals to increase his life insurance book of business. He has made arrangements with Sam Day the owner of Full Coverage Insurance Ltd. to handle that agency’s life insurance referrals. Full Coverage Insurance Ltd. and Sam Day hold general insurance licenses only. Which of the following arrangements between Sam Day and Mr. Wrench will be compliant?*

Mr. Wrench will pay the insurance premium for Full Coverage Insurance Ltd.’s, Key Person insurance policy.

Full Coverage Insurance Ltd. will be paid a fee of $75.00 for every referral forwarded to Mr. Wrench regardless of whether or not a life insurance policy is written.

Full Coverage Insurance Ltd. will be paid 15% of the commission for each policy sold as a result of the referral to Mr. Wrench.

Mr. Wrench and Sam Day cannot refer business to each other because each would have to be fully licensed to do so.

Sam Day will be paid a fee of $125.00 for every life insurance policy placed with Mr. Wrench.