LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
A client wants to complain about an insurer's handling of her file. The first formal step is to:
- use the insurer's internal complaint process and its designated complaints officer
- Breport the insurer to the federal superintendent, which resolves individual disputes
- Capply to court, since litigation is the only avenue available for a contractual dispute
- Dcontact the ombudservice, which reviews complaints before the insurer has responded
Correct answer: A) use the insurer's internal complaint process and its designated complaints officer
Every insurer must maintain a complaint process with a designated officer and give a written response. Only when that process is exhausted does the independent ombudservice take up the matter.
Why the other options are wrong
- BThe federal superintendent does not resolve individual client disputes.
- CLitigation is available but is not the first or usual step.
- DThe ombudservice acts after the internal process has run its course.
Exam tip
Internal complaints officer first, ombudservice second, court last.
Common mistake
Escalating externally before the insurer's own process is complete.
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.