LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent notices that an applicant's identity document does not appear to belong to the person presenting it. The agent should:
- Aproceed with the transaction and note the concern in the file, leaving the insurer to resolve it
- Bask the applicant to bring a friend who can confirm that the identity is genuine
- stop the transaction, decline to verify the identity and consider the reporting obligations
- Daccept a second document of the same type to resolve the doubt on the spot
Correct answer: C) stop the transaction, decline to verify the identity and consider the reporting obligations
Identity cannot be verified where the document does not appear genuine or does not match the person. The agent must not proceed, must record what was observed and must consider whether a suspicious transaction report is required.
Why the other options are wrong
- AProceeding on an unverified identity defeats the whole requirement.
- BA friend's word is not a permitted method of verifying identity.
- DA second questionable document does not resolve the concern.
Exam tip
If identity cannot be verified, the transaction does not proceed.
Common mistake
Recording a doubt and proceeding anyway.
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.