LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
A client complains to the agent about the insurer's service. The agent should:
- ADismiss the complaint, since service problems are the insurer's responsibility and the agent cannot fix them
- BKeep the complaint from the insurer, since reporting it could damage the agent's relationship with the company
- CAdvise the client to sue the insurer, since litigation is the only way to compel a large company to improve its service
- Listen, try to resolve it, inform the client of the formal process and escalation rights, and log it as required
Correct answer: D) Listen, try to resolve it, inform the client of the formal process and escalation rights, and log it as required
Complaint handling is both a service and a compliance obligation: insurers and MGAs require complaints to be logged and clients told how to escalate.
Why the other options are wrong
- ADismissing a complaint breaches the duty to address it.
- BComplaints must be logged, not hidden.
- CThe escalation ladder comes first.
Exam tip
Complaints: resolve, inform of process, log.
Common mistake
Failing to log a complaint that later escalates.
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.