LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
A client asks to handle everything by text message. The agent may agree provided that:
- Athe client accepts in writing that the agent bears no responsibility at all for the method chosen
- consent, security and record-keeping are addressed and instructions are properly documented
- Cnothing is recorded, since informal messages fall outside the record-keeping requirements
- Dthe insurer approves the use of text messaging for that individual client in advance
Correct answer: B) consent, security and record-keeping are addressed and instructions are properly documented
Clients may choose their channel, but the agent's obligations follow. Messages that record instructions or advice form part of the file, and the channel must be secure enough for the information exchanged.
Why the other options are wrong
- AAn agent cannot contract out of professional obligations.
- CMessages recording instructions or advice are records like any other.
- DInsurer approval is not what governs the agent's communication method.
Exam tip
The channel can change; the record-keeping and security duties do not.
Common mistake
Treating text messages as informal and outside the client file.
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.