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IIQEPrepStudyingPaper 1
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MPF intermediaries
MPFMPF Intermediaries ExaminationAfter completing an FNA, a licensed insurance broker recommends a savings policy from Insurer X. Under GL30, the broker should also:
Answer: offer a suitable option from another authorized insurer. A broker that recommends a product after an FNA should also put forward at least one alternative, issued by another authorized insurer, that suits the customer; the sole exception is where it concludes, and records why, that no alternative exists.Why not the others:• offer a second plan from Insurer X: The extra option must come from a different authorized insurer, not the same one.• obtain the IA's prior approval for the recommendation: No IA approval of individual recommendations is required.• ask Insurer X to countersign the FNA form for the customer: The FNA form is signed by the customer and the intermediary; this is not the broker's added duty here.Watch out: Thinking a second product from the same insurer is enough; the alternative must come from another authorized insurer.Rule: GL30/GL16: a broker recommending a product must also offer at least one other suitable option from a different insurer, unless none exists (documented).Source: IA Long Term Insurance (Paper III) Study Notes, 2022 Edition (8th ed., June 2022; for exams from 24 Oct 2022), 5.2.9(e)(ii), p. 5/41
Thinking a second product from the same insurer is enough; the alternative must come from another authorized insurer.
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