LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent becomes aware that a client is being financially exploited by a family member. The agent should:
- AConfront the family member directly, since the agent has a duty to protect the client from anyone who threatens their interests
- BProcess whatever the family member requests, since the agent has no authority to question a family's arrangements
- Follow vulnerable-client procedures: speak privately, contact the trusted person, hold where permitted, document, escalate
- DTake no action, since financial exploitation within a family is a private matter outside an insurance agent's role
Correct answer: C) Follow vulnerable-client procedures: speak privately, contact the trusted person, hold where permitted, document, escalate
Vulnerable-client protection is an active obligation; procedures balance privacy with protection.
Why the other options are wrong
- AEscalate through proper channels, not confrontation.
- BProcessing the family member's requests would be complicity.
- DThe agent has a duty to act on suspected exploitation.
Exam tip
Exploitation: private conversation, TCP, hold, document, escalate.
Common mistake
Executing a large withdrawal requested by a relative over the client's evident confusion.
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.