LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent must report to the regulator (self-report) events such as:
- ANothing beyond renewing the licence, since the regulator obtains any relevant information through its own checks
- BOnly criminal convictions, since charges that have not resulted in a conviction are not the regulator's concern
- CA change of vehicle used for client visits, since the regulator tracks the agent's business assets
- Charges or convictions, bankruptcy, regulatory actions, termination for cause, changes of address or sponsor, and E&O lapses
Correct answer: D) Charges or convictions, bankruptcy, regulatory actions, termination for cause, changes of address or sponsor, and E&O lapses
Self-reporting is a licence condition; failure to report is itself misconduct.
Why the other options are wrong
- AMany events must be self-reported.
- BCharges, not only convictions, must be reported.
- CA change of car is not reportable.
Exam tip
Self-report: charges, bankruptcy, regulatory actions, terminations, E&O lapses, changes.
Common mistake
Waiting until renewal to disclose a criminal charge.
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.