Ethics Fair Treatment & Professional Conduct question: Before recommending the policy

EthicsFair Treatment & Professional Conduct

Kim, 46, a dentist in Kelowna with two teenagers, meets agent Rowan about a universal life policy her accountant mentioned for estate planning. Rowan has an illustration ready and wants to move quickly because Kim is busy. Kim says she is comfortable with some market risk but wants to keep her monthly outlay under $1,500. Before recommending the policy, what information does the guidance say Rowan should gather?

A Her age, health and smoking status, for the quote
B Her accountant's view and the policies her friends own
C The premium she wants and the death benefit she wants
D Her finances, needs, budget, goals and risk profile

Show the answer and explanation

Answer: D. Her finances, needs, budget, goals and risk profile

Before giving advice, the guidance expects appropriate information to be sought to assess the customer's insurance objectives and needs, including financial knowledge and experience, needs, priorities and circumstances, ability to afford the product, and risk profile. Underwriting facts alone do not show whether a product is appropriate. Source: CCIR/CISRO, Guidance: Conduct of Insurance Business and Fair Treatment of Customers (Sept 2018; in force as at 12 Oct 2026), s. 6.8.

Common mistake

Confusing underwriting information with a needs assessment.

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Original study material mapped to the public CISRO curriculum; not a real test question.Not affiliated with CISRO, CCIR or any provincial insurance regulator. Verify figures and rules against current guidance before relying on them.