LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
A client receives a short plain-language summary alongside a lengthy contract. The purpose of that summary is to:
- Asatisfy the insurer's own internal audit requirements rather than to inform the client
- Breplace the contract, so the client need never read the full policy document at all
- Crecord the agent's recommendation and the reasons supporting it for the file
- set out the key features, exclusions and costs in language the client can readily follow
Correct answer: D) set out the key features, exclusions and costs in language the client can readily follow
Key features documents exist so clients can understand what they are buying without reading the full contract. They summarize coverage, exclusions, costs and cancellation rights, but the contract remains the governing document.
Why the other options are wrong
- AThe document exists to inform the client, not to serve an internal audit.
- BThe contract governs; the summary does not replace it.
- CThe agent's recommendation is documented separately in the file.
Exam tip
A key features summary informs; the contract still governs.
Common mistake
Letting a client rely on the summary without reviewing the contract terms.
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.