LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
A client wants to name the agent as beneficiary 'because you've been so helpful'. The agent must:
- AAccept gratefully, since a client's free choice of beneficiary is a matter for the client alone
- BAccept if the client insists after being told it is unusual, since the client's wishes must be respected as a matter of autonomy
- Decline; being named by a non-family client is a prohibited conflict that invites undue influence claims
- DAccept if the amount is small, since a modest bequest cannot be said to have influenced the agent's advice
Correct answer: C) Decline; being named by a non-family client is a prohibited conflict that invites undue influence claims
Personal benefit from a client's estate is one of the clearest prohibited conflicts.
Why the other options are wrong
- AAccepting the designation is prohibited.
- BInsistence changes nothing.
- DThere is no small amount that makes it acceptable.
Exam tip
Never accept beneficiary/executor/POA roles from non-family clients.
Common mistake
Accepting a small 'thank-you' bequest.
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.