LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent realizes after issue that she selected the wrong rider on a client's application. She should:
- Acorrect the file quietly and record that the client had requested the change herself
- Bsay nothing unless the client notices, since the error may never cause any actual harm
- tell the client promptly, correct it with the insurer and notify her liability insurer if needed
- Dwait until the annual review, when the correction can be presented to her as an improvement
Correct answer: C) tell the client promptly, correct it with the insurer and notify her liability insurer if needed
Prompt disclosure limits the harm and preserves the relationship. Concealing an error or altering the record to disguise it turns a mistake into misconduct, which regulators treat far more seriously.
Why the other options are wrong
- AFalsifying the record is far worse than the original mistake.
- BConcealment converts an honest error into a disciplinary matter.
- DDelay allows the consequences of the error to grow.
Exam tip
Disclose your own errors promptly; concealment is the real offence.
Common mistake
Hoping a client will not notice an error that can still be corrected.
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.