LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
A client asks the agent to recommend a policy for her elderly father, who is not present. The agent should:
- Meet the father directly to assess his needs, capacity and consent, since suitability is assessed for him
- BSell whatever the daughter selects, since she knows her father's circumstances and will be paying the premiums
- CTake the application from the daughter and have her sign as applicant, so the father is not troubled with paperwork
- DDecline to speak to the father at all, since the daughter initiated the contact and is the agent's client
Correct answer: A) Meet the father directly to assess his needs, capacity and consent, since suitability is assessed for him
Consent, capacity and suitability all require direct contact with the person insured or owning the policy.
Why the other options are wrong
- BSuitability is for the father, not the daughter.
- CThe father's consent and KYC are required.
- DThe father is the client and must be spoken to.
Exam tip
Third-party requests: deal with the actual client; obtain consent.
Common mistake
Taking an application on a parent's life without the parent's involvement.
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.