LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
A client asks the agent to hold a cheque and 'submit it next month when the bonus comes in'. The agent should:
- ADeposit the cheque in the agent's own account until the client is ready, so it does not sit uncashed in a drawer where it could be lost
- BPost-date the application to the month the client expects to pay, so the paperwork and payment match
- CHold the cheque as requested, since a short delay at the client's own request harms no one
- Decline to hold funds or paperwork, explain that submissions must be prompt, and take the application when the client can pay
Correct answer: D) Decline to hold funds or paperwork, explain that submissions must be prompt, and take the application when the client can pay
Holding funds and delaying submission breach handling and prompt-transmission rules.
Why the other options are wrong
- ADepositing the cheque personally is misappropriation.
- BPost-dating the application is falsification.
- CHolding client cheques is prohibited.
Exam tip
Submit promptly; never hold funds or paperwork.
Common mistake
Keeping cheques in a drawer as a 'favour'.
What this tests
CISRO competency component 2.2 — Integrate into practice the rules governing the activities of life insurance agents — which is weighted at 40% of the Ethics & Professional Practice module. Written against the published curriculum.
More from component 2
- A prospective client wants to confirm that an agent is properly licensed before meeting him. She should:
- A dual-licensed agent's mutual fund business is reviewed following a client complaint. The review will be conducted by:
- Assuris coverage applies to:
- OLHI's services are available to:
- Complaints about an agent's conduct (as opposed to an insurer's claim decision) should be directed to:
- The best summary of an agent's ethical obligations is to:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.