Ethics Fair Treatment & Professional Conduct question: all-expenses-paid trip by reaching a sales target with Insurer Y

EthicsFair Treatment & Professional Conduct

Marco, an independent agent in Burlington contracted with four insurers, can earn an all-expenses-paid trip by reaching a sales target with Insurer Y this quarter; he is two policies short. He is meeting Tessa, 37, who needs $600,000 of 20-year term with a strong conversion option. After comparing products, Marco concludes that Insurer Z's policy suits Tessa better on price and conversion terms. What does the fair treatment guidance expect?

A Recommend the target insurer but tell the client about the trip
B Delay the sale until the incentive period ends
C Recommend the product that fits the client's needs
D Recommend the target insurer, since both are licensed

Show the answer and explanation

Answer: C. Recommend the product that fits the client's needs

The guidance expects insurers and intermediaries to place the customer's interests ahead of their own and to avoid or properly manage conflicts of interest, including those arising from compensation structures, performance targets and inducements. Disclosure alone is not enough where it puts an unreasonable onus on the customer; the recommendation must still fit the client. Source: CCIR/CISRO, Guidance: Conduct of Insurance Business and Fair Treatment of Customers (Sept 2018; in force as at 12 Oct 2026), s. 6.2.

Common mistake

Thinking disclosure of an incentive cures an unsuitable recommendation.

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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.