LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
An agent is convicted of a criminal offence involving dishonesty unrelated to her insurance work. She must:
- Asay nothing, because the offence had no connection to any insurance transaction
- Bsurrender the licence automatically, since any criminal conviction permanently ends an agent's career
- report the conviction to the regulator, which may review her suitability to hold a licence
- Dreport it only to her insurer, which decides whether the regulator needs to know
Correct answer: C) report the conviction to the regulator, which may review her suitability to hold a licence
Suitability to hold a licence depends on character as well as competence. Regulators require prompt disclosure of criminal convictions, bankruptcies and certain other events, whether or not the conduct touched insurance business.
Why the other options are wrong
- ADishonesty in any context is relevant to whether the agent should hold a licence.
- BThe regulator assesses the circumstances rather than revoking automatically.
- DThe obligation runs to the regulator, not only to the insurer.
Exam tip
Convictions, bankruptcies and other reportable events go to the regulator promptly.
Common mistake
Treating personal conduct as irrelevant to a professional licence.
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.