LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent discovers a colleague is forging client signatures. The agent's obligation is to:
- AConfront the colleague privately and let the matter rest if the colleague promises to stop and makes good any harm
- Report it through compliance channels and, where required, to the regulator; silence can implicate the agent
- CTake no action, since one agent's conduct is not another agent's responsibility under the licensing rules
- DAdopt the practice, since it is evidently tolerated in the office and clients have not complained
Correct answer: B) Report it through compliance channels and, where required, to the regulator; silence can implicate the agent
Reporting misconduct protects clients and is expected of licensees.
Why the other options are wrong
- AFormal reporting is required.
- CThere is a duty to report the misconduct.
- DJoining in would be misconduct.
Exam tip
Report colleague misconduct through compliance/regulator.
Common mistake
Believing loyalty to a colleague outweighs the duty to clients.
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.