LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
A client pressing for coverage before a trip asks the agent to skip the usual documentation. The agent should:
- Asubmit the application without the documents and forward them after the trip
- Bissue a letter confirming coverage is in place so the client can travel with confidence
- Ctell the client that nothing can be done before the departure date arrives
- explain what temporary coverage may be available and complete the requirements properly
Correct answer: D) explain what temporary coverage may be available and complete the requirements properly
Urgency does not remove any requirement. The agent should explain what a temporary agreement can and cannot do, complete the application correctly and never confirm coverage the insurer has not put in place.
Why the other options are wrong
- ASubmitting an incomplete application creates a problem rather than coverage.
- BAn agent cannot confirm coverage that has not been granted.
- CTemporary coverage may be available and should be explained.
Exam tip
Urgency never justifies shortcuts, and only the insurer confirms coverage.
Common mistake
Giving a client written comfort about coverage not yet in force.
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.