LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
A client refuses to sign anything and wants to conduct the whole relationship by telephone. The agent should:
- Asign on the client's behalf and note in the file that the instruction was given by telephone
- explain which documents require signature and offer electronic signing where permitted
- Cproceed on verbal instructions alone, since a recorded call is as good as a signature
- Dend the relationship, since a client who will not sign cannot be served at all
Correct answer: B) explain which documents require signature and offer electronic signing where permitted
Applications, authorizations and certain designations require the client's signature. Electronic signatures are generally acceptable where the insurer's process supports them, which usually resolves a client's reluctance.
Why the other options are wrong
- ASigning for a client is forgery regardless of the instruction.
- CSome documents cannot be completed without a signature.
- DElectronic options usually make ending the relationship unnecessary.
Exam tip
Offer electronic signing rather than working around the signature requirement.
Common mistake
Accepting verbal instructions for documents that require a signature.
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.