LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
A client wants to know whether an agent has ever been disciplined. Regulators normally:
- Akeep all disciplinary outcomes confidential to protect the individual's privacy
- publish discipline decisions, which the public can search alongside the licence register
- Crelease the information only to insurers considering whether to contract the agent
- Ddisclose it only in response to a formal access to information request by the client
Correct answer: B) publish discipline decisions, which the public can search alongside the licence register
Publishing decisions allows consumers to make informed choices and deters misconduct. A client checking the register can usually see the licence status, any conditions attached and past disciplinary outcomes.
Why the other options are wrong
- ADiscipline decisions are generally published rather than kept private.
- CThe information is available to the public, not only to insurers.
- DNo formal request is needed to see published discipline decisions.
Exam tip
Discipline decisions are public and searchable with the licence register.
Common mistake
Telling a client that disciplinary history cannot be looked up.
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.