LLQP Ethics Civil Code / Québec: Québec Representative Conduct

Topic snapshot

Sample questions

These questions are original Securities Prep practice items aligned to this LLQP competency area. They are designed for self-assessment and are not official exam questions.

Question 1

Topic: Integrate into Practice the Rules Governing the Activities of Representatives in Insurance of Persons (Québec)

Which statement is most accurate about what a Québec representative in insurance of persons must explain when delivering an insurance contract to a client?

• A. At delivery, the representative should avoid discussing exclusions or limitations to prevent alarming the client; the client can read the policy later and ask questions if needed.
• B. The representative’s only duty at delivery is to obtain the client’s signature acknowledging receipt; explanations are optional because the insurer’s policy wording governs.
• C. The representative should review the policy with the client and explain key terms and any material limitations or exclusions, especially where the contract differs from what the client understood or what was discussed, to support informed consent.
• D. At delivery, the representative must guarantee that the policy will cover any event the client described during the needs analysis, since the contract was recommended based on those needs.

Best answer: C

What this tests: Québec Representative Conduct

Explanation: Contract delivery is not just an administrative step. In Québec practice, a representative in insurance of persons is expected to act in the client’s interest and in good faith by helping the client understand what was issued.

At delivery, the representative should:

• Verify the contract matches what was applied for and what was discussed (insured, coverage amount, riders, premiums, effective date, beneficiary/owner where relevant).
• Explain key terms in plain language, focusing on material limitations such as exclusions, waiting periods, conditions for eligibility, and any important restrictions.
• Clearly point out divergences between the client’s expectations (or prior discussions/illustrations) and the actual contract, and confirm the client’s understanding.
• Document what was reviewed and what was explained, especially any material limitation or divergence.

These steps support informed consent and reduce the risk of misunderstandings and complaints later.

At delivery, the representative must help the client understand what was actually issued, highlight important limitations/exclusions, and clarify any divergences so the client can make an informed decision and avoid misunderstandings.

Question 2

Topic: Integrate into Practice the Rules Governing the Activities of Representatives in Insurance of Persons (Québec)

When assisting a client with an accident & sickness (disability) claim, you need to obtain medical information from the client’s doctor to complete the insurer’s claim file. What is typically missing before you can request or receive that medical information from the doctor’s office?

• A. Proof that the client has paid the most recent premium
• B. The client’s written authorization/consent allowing the doctor to release medical information for the claim
• C. A beneficiary designation form
• D. A copy of the policy contract showing the coverage amount

Best answer: B

What this tests: Québec Representative Conduct

Explanation: In Québec practice, when servicing a claim you must respect confidentiality and collect/disclose personal information only on a need-to-know basis. Medical information is among the most sensitive categories of personal information. A representative may help the client gather documents, but should not request or receive medical records from a third party (such as a doctor, clinic, or hospital) unless the client has provided clear authorization/consent to release that information for the claim.

Using a proper authorization helps prevent delays (the third party will often refuse without it) and protects the client’s privacy by limiting who can access the information and for what purpose.

Medical information is sensitive and should only be collected/disclosed on a need-to-know basis with the client’s authorization. A signed consent/authorization is typically required before a third party will release it.

Question 3

Topic: Integrate into Practice the Rules Governing the Activities of Representatives in Insurance of Persons (Québec)

When delivering a new life insurance policy to a client in Québec, which practice best supports informed consent and good-faith dealing?

• A. Email the policy for the client to read later, and avoid discussing exclusions so the meeting stays focused on relationship-building.
• B. Highlight the premium and the death benefit amount, and reassure the client that claims are always paid as long as premiums are up to date.
• C. Use a delivery checklist to review key contract terms, explain important exclusions/limitations in plain language, confirm the beneficiary designation matches the client’s instructions, and document the client’s acknowledgment and questions.
• D. Ask the client to sign a receipt confirming delivery of the policy, without going into details, because the insurer’s contract wording governs regardless of what is discussed.

Best answer: C

What this tests: Québec Representative Conduct

Explanation: Policy delivery is a key moment to ensure the client’s consent remains informed and that the representative acts in good faith. Best practice is to actively review the policy with the client using a checklist: confirm the insured/owner/beneficiary details, explain key coverage terms and major exclusions/limitations in plain language, and invite questions.

Documenting what was reviewed and the client’s acknowledgment helps reduce misunderstandings and supports ethical, client-first practice if an issue or complaint arises later.

This combines the core delivery best practices that support informed consent: clear explanation of what is covered and not covered, confirmation of beneficiary details, and documentation that the client received and understood the information.

Question 4

Topic: Integrate into Practice the Rules Governing the Activities of Representatives in Insurance of Persons (Québec)

During a virtual meeting, a representative records a 20-second promo video for social media to attract new clients. The video script says: “Our plan guarantees your investment will grow every year, and you’ll earn at least 8% annually—no risk.” The representative has not verified that any product offered provides that result.

What is the most appropriate next step to remain compliant with ethical duties regarding advertising and representations?

• A. Stop and revise the script to remove guarantees/performance promises, use accurate and balanced wording with key limitations, and keep supporting documentation for any objective claims before posting.
• B. Post the video as long as the representative can explain later that the 8% figure was only an illustrative example, not a promise.
• C. Post the video but add “Results may vary” in small text so viewers understand the guarantee is not absolute.
• D. Post the video only after the insurer approves it, since insurer approval makes the guarantee acceptable in advertising.

Best answer: A

What this tests: Québec Representative Conduct

Explanation: This scenario tests ethical obligations in advertising: a representative must communicate in a truthful, clear, and non-misleading way. Promising a guaranteed return (for example, “at least 8% annually—no risk”) is a performance claim that must be accurate and verifiable, and it must not omit important conditions or limitations.

A compliant next step is to stop and rewrite the message so it reflects what can actually be supported (for example, describing insurance coverage benefits, guarantees that truly exist in the contract, or using neutral language like “may,” “depends,” and “subject to terms”). If any objective statement is kept (such as fees, guaranteed rates, or contract features), the representative should be able to substantiate it and keep a record supporting the claim.

Disclaimers or “we’ll clarify later” do not cure a misleading headline claim. The public-facing message itself must be fair and accurate at the time it is communicated.

Ethical advertising must be truthful, verifiable, and not misleading. Removing unsupported guarantees and documenting the basis for any factual statements best protects the public and the representative.

Question 5

Topic: Integrate into Practice the Rules Governing the Activities of Representatives in Insurance of Persons (Québec)

Which statement best describes the role of the Canadian Association of Pension Supervisory Authorities (CAPSA) in oversight and guidance for supplemental pension plans in Canada?

• A. CAPSA is a national forum of pension supervisory authorities that develops guidance and model standards to promote consistent supervision and good governance of pension plans across jurisdictions.
• B. CAPSA is an industry association for insurers that sets mandatory policy wording and pricing rules for group annuity contracts funding pension plans.
• C. CAPSA’s main role is to resolve individual consumer complaints about pension benefits and order payment of disputed amounts from plans.
• D. CAPSA is the federal regulator that directly licenses pension plan administrators and enforces pension legislation across all provinces and territories.

Best answer: A

What this tests: Québec Representative Conduct

Explanation: CAPSA is a coordinating body made up of Canadian pension supervisory authorities. Its role is to support effective supervision of pension plans by promoting consistency across jurisdictions and publishing guidance and model standards (for example, on pension plan governance, risk management, and communication practices).

For a Québec representative, the practical takeaway is that CAPSA materials can be a credible reference point for best-practice guidance in the pension supervision context, but CAPSA is not the direct regulator that licenses individuals, adjudicates individual benefit disputes, or enforces pension law on its own.

This captures CAPSA’s core function: coordinating provincial/territorial regulators and issuing guidance (for example, on governance or risk management) to support harmonized, effective pension oversight.

Question 6

Topic: Integrate into Practice the Rules Governing the Activities of Representatives in Insurance of Persons (Québec)

You are reviewing a prospecting message that a representative plans to send to a client who is hesitating about replacing a policy. Based only on the exhibit, which interpretation is the most accurate from an ethics/informed-consent perspective?

EXHIBIT — Draft message to client

“Hi Marie, good news: my plan is *better than your current insurer* and it’s basically approved.
If you sign the replacement form today, I can lock the rate.
Don’t worry about the details—we’ll complete the health questions after.
I’ll take care of cancelling your old policy once you sign.”

• A. This is proper solicitation because it simply offers help and sets a deadline, and the details can be provided after signature.
• B. This message shows improper practice because it pressures the client to sign and suggests completing health information after signature, which can prevent informed consent and accurate disclosure.
• C. The only issue is the statement that the plan is “better than your current insurer”; the rest reflects normal replacement processing.
• D. This is acceptable as long as the representative later sends the policy contract and the client can read it during the free-look period.

Best answer: B

What this tests: Québec Representative Conduct

Explanation: The exhibit includes several red flags that undermine informed consent and fair dealing. In Québec practice, a representative must avoid pressure tactics and must ensure the client understands what they are agreeing to before obtaining a signature. The message creates artificial urgency (“today”), discourages understanding (“don’t worry about the details”), and suggests postponing completion of health questions until after signature. That combination encourages a client to consent without being properly informed and increases the risk of inaccurate disclosure, which is inconsistent with good faith in insurance contracting.

Legitimate solicitation can be proactive and persuasive, but it must remain truthful, balanced, and must not push a client to commit before understanding key features, limits, and the implications of replacing coverage.

The exhibit contains urgency (“today”), minimizes review (“don’t worry about the details”), and encourages an incomplete application (“complete the health questions after”), all of which are incompatible with informed consent and good-faith disclosure.

Question 7

Topic: Integrate into Practice the Rules Governing the Activities of Representatives in Insurance of Persons (Québec)

You are certified in Québec only as a representative in insurance of persons (individual). A client who owns a 12‑employee café asks you to “set up a group benefits plan” and wants you to recommend an insurer today. What is the best next step to remain compliant and professional?

• A. Recommend a basic group plan anyway, because group benefits are still “insurance of persons.”
• B. Proceed if the client signs a written waiver acknowledging you are not certified for group insurance.
• C. Explain your limits of authorization and refer the client to a representative certified in group insurance of persons, documenting the referral.
• D. Collect the café’s employee data and request group quotes from insurers before deciding whether you need to refer.

Best answer: C

What this tests: Québec Representative Conduct

Explanation: In Québec, representatives are authorized by specific certification categories (for example, insurance of persons versus group insurance of persons). These categories exist to protect the public by ensuring the representative has the required training, competence, and oversight for the activity performed.

When a client requests an activity that falls outside your certification, the compliant approach is to be transparent about your limits, avoid making recommendations or taking steps to place coverage in that category, and direct the client to an appropriately certified professional. Proper documentation of the discussion and referral supports good faith, clarity, and accountability.

This respects licensing rules and client protection: you clearly disclose your limits, ensure the client gets competent advice, and keep appropriate records.

Question 8

Topic: Integrate into Practice the Rules Governing the Activities of Representatives in Insurance of Persons (Québec)

When assisting a client to make a complaint to an insurer, which information is MOST appropriate for the representative to document in the client file while respecting privacy and confidentiality?

• A. A complete transcript of all phone calls with the insurer, including internal insurer comments and any personal information about other clients mentioned during the call
• B. The date and method of the complaint, a factual summary of the issue, what information was shared and on what authorization, who was contacted, copies of the client’s correspondence provided, and any follow-up commitments made
• C. All personal details the representative knows about the client (including unrelated medical history), plus the representative’s opinion about who is “at fault” and what the insurer must pay
• D. A summary of the complaint sent to the client’s employer or spouse so they can “support the client,” even if the client did not give written authorization

Best answer: B

What this tests: Québec Representative Conduct

Explanation: Insurers maintain internal complaint handling processes to ensure complaints are handled consistently and fairly, to identify and correct errors or systemic issues, and to create a clear record that supports review and escalation if needed. When a representative helps a client with a complaint, professionalism and privacy principles still apply: collect and record only what is necessary, share information only with appropriate consent/authorization, and document facts and follow-up steps so the client can be properly supported.

Good file notes should allow another professional to understand what happened and what will happen next—without including unnecessary sensitive details or third‑party information.

This creates a clear audit trail for follow-up and demonstrates professional, need-to-know information handling with documented consent/authorization.

Question 9

Topic: Integrate into Practice the Rules Governing the Activities of Representatives in Insurance of Persons (Québec)

When setting up and documenting a recommendation for a group insurance plan, which documentation best helps prevent later disputes about the handling of employees’ personal information?

• A. A record of what employee information will be collected and why, who is authorized to disclose/receive it (insurer/TPA/firm), and how employee consent/notice will be obtained and communicated on a need-to-know basis
• B. Permission to share employee information implied by employment, so no specific consent/notice or access limits need to be documented
• C. A note that the employer requested a quote, without recording how employee data will be transferred, since documenting data flows increases liability
• D. Only the plan design details (eligibility rules, coverage classes, and employer contribution formula), because privacy is the insurer’s responsibility once the plan is in place

Best answer: A

What this tests: Québec Representative Conduct

Explanation: In group insurance, the representative often needs information about employees (for example, census data or eligibility details) to analyze and implement coverage. Privacy and confidentiality principles require that personal information be handled transparently and securely: collect only what is necessary, use it only for the stated purpose, and share it only with authorized parties.

To prevent disputes later, the file should clearly show:

• the purpose for collecting employee information (e.g., underwriting/administration of the group plan),
• what information is needed (and what is not),
• who is authorized to disclose and receive it (employer, insurer, third-party administrator, the firm),
• how employee consent and/or notice will be obtained and communicated, and
• the “need-to-know” limits (who in the organization can access what).

This creates a defensible record of informed, controlled information handling—separate from (but complementary to) documenting plan design items like eligibility, classes, and employer contributions.

This documentation supports confidentiality by showing a clear purpose, defined authorized parties, and consent/notice, while limiting disclosure to what is necessary.

Question 10

Topic: Integrate into Practice the Rules Governing the Activities of Representatives in Insurance of Persons (Québec)

In Québec, during a structured needs analysis for an insurance-of-persons client, which information is the most critical to confirm and document because it is most directly linked to the client’s duty of disclosure (good faith) and could affect the validity of the insurance contract if misstated or omitted?

• A. Health and lifestyle facts that affect insurability (for example, significant medical history, tobacco use, or hazardous activities)
• B. The client’s general satisfaction with their current insurer and reasons for shopping around
• C. The client’s communication preferences (email, text, or phone) and preferred meeting times
• D. The client’s preferred billing method (monthly vs. annual) and the desired payment date

Best answer: A

What this tests: Québec Representative Conduct

Explanation: In Québec civil-law framing, insurance contracts are formed and performed in good faith. In practice, this means the client must disclose (and the representative should help elicit, clarify, and document) facts that are material to the insurer’s decision—such as facts that would influence underwriting, acceptance, or pricing.

A structured needs analysis is not only about financial needs (income, debts, dependants, existing coverage); it also supports ethical and compliant contract formation by ensuring information that affects insurability and risk is complete and accurate. Confirming and documenting health and lifestyle risk factors helps prevent misrepresentation and protects both the client and the integrity of the application process.

These are typically “material” to the insurer’s assessment of risk. If they are misstated or omitted, it can amount to misrepresentation and may affect the insurer’s obligations under the contract.

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Related focused pages

• Free LLQP Ethics Civil Code / Québec Full-Length Practice Exam
• LLQP Ethics Civil Code / Québec: Québec Legal Framework
• LLQP Ethics Civil Code / Québec: Québec Contract Law

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