LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent moves to a new managing general agency. Regarding existing clients the agent should:
- Ado nothing, since the contracts continue and clients need not be told anything
- Bask the former agency to continue servicing those clients on his behalf for the foreseeable future
- Crecommend that clients replace their contracts through the new agency
- provide updated disclosure so clients know who he now represents and how to reach him
Correct answer: D) provide updated disclosure so clients know who he now represents and how to reach him
Disclosure of the companies represented and the agent's contact details must be kept current. Clients need to know who is servicing their contracts, and any replacement must be justified on its own merits.
Why the other options are wrong
- AClients are entitled to current disclosure about who represents them.
- BThe agent cannot outsource the relationship to a former agency.
- CReplacing contracts to suit a new arrangement is not a client-driven reason.
Exam tip
Keep disclosure current whenever your representation changes.
Common mistake
Changing agency without telling clients who now represents them.
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.