The LLQP exam certificate is valid in all provinces and territories except Quebec, which uses a separate system altogether.
In order to become eligible to work for many companies, such as Freedom 55 and Sun Life, a candidate must first complete and pass the LLQP.
This was largely the result of declining interest rates on safe, income-producing investments such as bond and treasury bill, though this was not the only problem.
This led to a wave of consolidation and demutualization amongst Canadian insurers, in an effort to raise capital and cut costs.
There are a few major career shops remaining today, such as those run by Sun Life, Freedom 55, and IGM Financial.
Under the brokerage system, a Managing general agent (MGA) takes on most of the responsibilities that once fell to the career shops.
The problem that would arise would be that the process that was then in place that would allow a certificate to sell life insurance to be issued was expected to be complemented by an intensive training program.
As a result, CCIR and CISRO announced that there would be a more rigorous examination and study process for those entering into the life insurance industry.
[4] The feeling was that by enforcing higher educational standards at the beginning, new agents would enter into the industry better prepared.
Once the Design Document was in place, the regulators created exams that students would have to pass in order to be able to apply for certification to sell insurance.
Concurrently, the regulators determined that they wanted to avoid a scenario which had happened in the days prior to the LLQP.
This is not a valid educational process; this candidate has learned the answers to the exam questions, but does not likely understand the underlying material.
In order to prevent this, it was determined that, prior to challenging the provincial certification exam, any candidate would have to first be certified by an authorized education provider.
Starting January 1, 2003, anybody wishing to work as an insurance agent in the common law provinces had to write their certification exam.
Industry experts and professionals and course providers recommend a student spend between 80 and 120 hours studying for the LLQP exam.
Educational companies, such as IFSE Institute,[9] will begin offering programs to candidates that will accommodate the new modular exams.
In [Manitoba], though, a prospective agent must have sponsorship from an insurer in place prior to being permitted to write the exam.