LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent must maintain 'competence' by:
- AReading the insurers' marketing material as new products are launched, since it summarizes everything the agent needs
- BNothing after licensing, since passing the LLQP establishes competence for the duration of the agent's career
- Completing required continuing education, keeping current on changes, and not advising on products not understood
- DRelying on the MGA's compliance staff to flag anything the agent needs to know about products or rules
Correct answer: C) Completing required continuing education, keeping current on changes, and not advising on products not understood
Competence is an ongoing obligation and a licence condition: continuing education, staying current, and declining to advise on products one does not understand.
Why the other options are wrong
- AReading marketing alone is insufficient.
- BCompetence obligations are ongoing after licensing.
- DCompetence is a personal responsibility.
Exam tip
Competence: CE + currency + know your limits.
Common mistake
Selling a complex product after a one-hour webinar.
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.