LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
An agent declines to meet a prospective client because of the client's religion. This conduct is:
- a breach of human rights legislation and of the agent's professional obligations
- Bacceptable provided the agent refers the prospect to a colleague of the same faith
- Cpermitted only where the insurer has approved the agent's client selection criteria
- Dacceptable, because agents may choose freely whom they wish to take on as clients
Correct answer: A) a breach of human rights legislation and of the agent's professional obligations
Human rights legislation prohibits refusing a service that is customarily available to the public on the basis of a protected ground. Such conduct also breaches the fair treatment expectations regulators apply to agents.
Why the other options are wrong
- BA referral does not cure a refusal based on a prohibited ground.
- CNo insurer can approve criteria that breach human rights legislation.
- DFreedom to choose clients does not extend to discrimination on protected grounds.
Exam tip
Refusing service on a protected ground is unlawful, whatever referral follows.
Common mistake
Treating client selection as entirely a matter of personal preference.
What this tests
CISRO competency component 1.1 — Integrate into practice the legal aspects of insurance and annuity contracts — which is weighted at 60% of the Ethics & Professional Practice module. Written against the published curriculum.
More from component 1
- An 'assignee' of a life insurance policy is:
- A corporation as policyowner and beneficiary of a policy on a key employee:
- A 'trustee' named to receive proceeds on behalf of a beneficiary:
- The 'automatic premium loan' (APL) provision:
- A life insurance contract 'matures' when:
- The 'assignment' provision typically states that:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.