LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
A client tells an agent he intends to complain to the regulator about her conduct. The agent should:
- Aoffer the client a payment in exchange for withdrawing the intended complaint
- Bwarn the client that a complaint will end the relationship and any future service
- Ccontact the regulator first in order to present her own account of events before the client does
- respond professionally, provide the complaint process information and cooperate fully
Correct answer: D) respond professionally, provide the complaint process information and cooperate fully
Clients are entitled to complain, and agents must cooperate with the regulator. Discouraging a complaint, or offering something in return for withdrawing it, is itself misconduct.
Why the other options are wrong
- APaying to suppress a complaint is a serious breach.
- BThreatening consequences for complaining is improper.
- CThere is nothing to gain from a pre-emptive account, and cooperation is the duty.
Exam tip
Never discourage a complaint; cooperate and document your position.
Common mistake
Trying to settle a complaint privately to keep it away from the regulator.
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.