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

"*" indicates required fields

Step 1 of 2

50%

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".

Name*

First Last

Email*

Market conditions have resulted in poor sales for agent Mr. Jon Doe. In order to convince his clients that they should purchase individual variable insurance contracts (segregated funds), Mr. Jon Doe has produced illustrations showing a 10% return on investments when the historical returns have been 4% and expected returns are 3%. Mr. Jon Doe hopes that the market will improve during the policy period. He relies on the fact that he tells his clients that the 10% is not a guarantee and that he has the illustration signed by the client. Based on the Life Insurance and Accident and Sickness Agent’s Code of Conduct, Mr. Jon Doe has...*

met the requirements by having his client sign the illustration proving that Mr. Jon Doe explained the investment and that the client understood that this return was not guaranteed.

not been compliant as an agent is required to be candid and honest when advising the client.

not acted with integrity and utmost good faith as required of an agent.

not been compliant as an agent is required to be candid and honest when advising the client, and he has not acted with honesty and integrity and utmost good faith as required of an agent.

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

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.

maintain financial records.

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

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*

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

should refer the client to the Insurance Council of Manitoba.

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.

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?*

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

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.

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

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

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

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

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.

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

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

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

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

requesting insurance investment products on a conservative basis automatically.

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

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

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

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.

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.

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.

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.

You have received a phone call from the policyowner’s spouse asking specific information about the performance of the policyowner’s universal life policy. The policyowner and spouse regularly meet with you to review the policy and the spouse is the revocable beneficiary. What is your course of action?*

Provide the information requested by the spouse as a courtesy to ensure that you will maintain the couple as clients.

Send the policyowner a text message advising that you have provided the spouse with the policy information.

Obtain permission from the policyowner in writing prior to providing policy details to the spouse.

As the spouse is the beneficiary, the spouse has the right to any information in the policy.

Carol Less has been visiting senior nursing homes and advising clients most of whom have little, if any, knowledge of investments to apply for leveraged loans secured by individual variable insurance contracts provided by Ms. Less. Historically the aggressive equity funds recommended by Ms. Less have produced rates of return sufficient to cover the loan payments. Ms. Less.*

is being unfair in her business practices by uniformly offering this type of arrangement without considering the individual needs and investment knowledge of her clients.

should advise the residents to take the cash value from any existing policies to pay for the new policies of insurance rather than use leveraging.

recognizes that because these products are complex, her knowledge as an agent makes her the best person to decide which products and investments are correct for these clients.

has developed a niche market advising her clients of the benefits of leveraging which they can use to increase their estates.

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.

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

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

Visit a Guaranteed Financial office near you.