LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
A client wants to buy a policy for a business partner but the partner has not agreed. The agent should:
- AProceed on the client's application alone, since insurable interest between business partners is enough
- Explain that the partner's written consent is required in addition to insurable interest, and the partner must sign
- CUse the client's health information for the application, since the partners share a business and similar risks
- DHave the client sign the partner's name, since the partner would consent if asked and the application is urgent for the business
Correct answer: B) Explain that the partner's written consent is required in addition to insurable interest, and the partner must sign
The life insured's consent and personal answers are non-negotiable.
Why the other options are wrong
- AConsent is still required.
- CThe partner's own answers are required.
- DForging the partner's signature is a crime.
Exam tip
Life insured must consent and answer personally.
Common mistake
Taking a partner's application without the partner present.
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.