LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
A client asks the agent to recommend a beneficiary designation that would defeat a court-ordered support obligation. The agent should:
- ACharge an additional fee for the extra work, since the arrangement is more complex than a standard designation
- BHelp the client, since the beneficiary designation is the client's right and the court order is a matter for the client
- CMake the change quietly without documenting the reason, so the agent is not connected with the client's purpose
- Decline to assist in circumventing the order, explain the legal risks, and suggest legal advice
Correct answer: D) Decline to assist in circumventing the order, explain the legal risks, and suggest legal advice
Agents must not assist an unlawful purpose; helping a client evade a court-ordered support obligation exposes the agent to civil liability and regulatory discipline.
Why the other options are wrong
- ACharging extra compounds the misconduct.
- BHelping defeat a court order is unlawful assistance.
- CDoing it quietly is still misconduct.
Exam tip
Do not assist in defeating court orders.
Common mistake
Changing a designation contrary to a support order.
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.