LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
A client asks the agent to summarize who to approach if something goes wrong. The clearest answer is:
- Athe ombudservice for everything, since it coordinates all financial services complaints
- Ba lawyer in every case, because only the courts can resolve an insurance dispute
- the regulator for the agent's conduct, the insurer then the ombudservice for a claim
- Dthe insurer for every concern, since it is the party that issued the contract
Correct answer: C) the regulator for the agent's conduct, the insurer then the ombudservice for a claim
Conduct and licensing concerns go to the regulator. Claim and service disputes start with the insurer's complaints officer and move to the ombudservice, with privacy matters going to the commissioner and courts remaining available.
Why the other options are wrong
- AThe ombudservice deals with insurer complaints, not agent discipline.
- BSeveral avenues exist before litigation becomes necessary.
- DAn insurer cannot address concerns about the agent's licence or conduct.
Exam tip
Conduct equals regulator; claim equals insurer then ombudservice.
Common mistake
Sending every kind of concern to a single organization.
What this tests
CISRO competency component 2.1 — 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.