LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
A client writes to the agent directly complaining about advice she received two years ago. The agent should:
- Arespond informally by telephone and keep no written record of the conversation
- Boffer a payment out of the agent's own funds to resolve the matter without any escalation
- acknowledge it in writing, notify the insurer or agency and follow the complaint process
- Dignore it, since a complaint about old advice is out of time and cannot proceed
Correct answer: C) acknowledge it in writing, notify the insurer or agency and follow the complaint process
Complaints must be acknowledged, recorded and handled through the established process, with the insurer or agency informed and the professional liability insurer notified where appropriate. Informal handling leaves no record and can prejudice coverage.
Why the other options are wrong
- AAn unrecorded telephone call leaves the agent without any evidence.
- BPersonal settlements can breach obligations and prejudice liability coverage.
- DThe agent cannot decide that a complaint is out of time.
Exam tip
Acknowledge, record, notify and follow the process for every complaint.
Common mistake
Handling a complaint informally to keep it quiet.
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.