LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
An agent hesitates to report a colleague's misconduct for fear of retaliation. Whistleblower provisions generally:
- Aapply only where the misconduct involves amounts above a prescribed dollar threshold
- Brequire the agent to report only after obtaining the colleague's written agreement first
- Cguarantee the reporting agent a financial reward proportionate to the penalty imposed
- protect a person who reports in good faith from reprisal for having made the report
Correct answer: D) protect a person who reports in good faith from reprisal for having made the report
Protections exist so that reporting is not deterred by fear of consequences. An agent who reports in good faith is shielded from reprisal, and failing to report known misconduct can itself be a breach.
Why the other options are wrong
- AThe protection is not limited by the size of the amounts involved.
- BNobody needs the wrongdoer's permission before reporting misconduct.
- CProtection from reprisal is not a financial reward scheme.
Exam tip
Good faith reporting is protected, and staying silent can itself be a breach.
Common mistake
Staying quiet about known misconduct out of fear of retaliation.
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.