LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent plans to operate under a business name different from his own. Before using it he must:
- Aensure the name includes the word insurance so that clients understand the business
- Bsimply begin using it, since a trade name is a marketing choice rather than a regulated matter
- register or notify the name as the regulator requires, so clients can identify him
- Dobtain the consent of every insurer whose products he currently distributes
Correct answer: C) register or notify the name as the regulator requires, so clients can identify him
Regulators require the names under which an agent carries on business to be recorded, so consumers can connect a trade name to a licensed individual. A name suggesting an affiliation that does not exist is separately prohibited.
Why the other options are wrong
- ANo rule requires a particular word to appear in the name.
- BTrade names are recorded precisely so clients can identify the licensee.
- DInsurer consent is not what makes a trade name permissible.
Exam tip
Register trade names so a client can trace them to the licence.
Common mistake
Adopting a business name without notifying the regulator.
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.