LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
A regulator audits an agent's continuing education declaration and finds the credits were never earned. The agent faces:
- Anothing, since the declaration is a formality that regulators do not verify in practice
- Ba requirement to complete twice the credits in the following licence period instead
- Ca referral to the insurer, which decides whether any consequence should follow
- disciplinary action for the false declaration as well as for the missing credits
Correct answer: D) disciplinary action for the false declaration as well as for the missing credits
Declarations are verified on audit. A false statement to the regulator is treated as a serious integrity matter, often more serious than the shortfall in education that prompted it.
Why the other options are wrong
- ADeclarations are audited, and a false one carries real consequences.
- BDoubling credits later does not answer the false declaration.
- CThe regulator, not the insurer, decides the consequence for a licensee.
Exam tip
A false declaration to the regulator is an integrity issue, not a paperwork one.
Common mistake
Signing an education declaration intending to complete the credits later.
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.