LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
A client asks the agent to write to his bank confirming the value of his policies to support a loan application. The agent should:
- provide only accurate information the agent can verify, with the client's written authorization
- Bwrite the letter with the figures the client has supplied, since he has asked for it himself
- Cwrite the letter and round the values upward slightly to improve the loan application
- Ddecline all involvement, since an agent may never communicate with a client's lender
Correct answer: A) provide only accurate information the agent can verify, with the client's written authorization
Anything the agent confirms to a third party must be accurate and verifiable, and the client must authorize the disclosure in writing. Overstating a value to help a loan application would be a misrepresentation to the lender.
Why the other options are wrong
- BThe agent cannot confirm figures supplied by someone else as if verified.
- CAdjusting values upward is a misrepresentation to the lender.
- DWith authorization and accurate information the agent may assist.
Exam tip
Confirmations to third parties need authorization and verified figures.
Common mistake
Confirming values to a lender on the strength of what the client said.
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.