LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent receives a 'lead' from a referral service that obtained the client's data without consent. The agent should:
- AUse the lead, since the referral service is responsible for its own compliance and the agent received the data in good faith
- Not use information obtained without proper consent, and verify lead sources' privacy and CASL compliance
- CUse the lead once and then discard it, since a single contact is unlikely to be treated as a privacy breach
- DSell the lead on to another agent, since the data has value and the agent should not be the one to bear the loss
Correct answer: B) Not use information obtained without proper consent, and verify lead sources' privacy and CASL compliance
Privacy obligations extend to how leads are sourced; using personal information collected without consent is a breach regardless of who collected it.
Why the other options are wrong
- AUsing it is a privacy breach.
- CUsing it once is still a breach.
- DSelling it on is a further breach.
Exam tip
Verify lead-source consent.
Common mistake
Buying scraped contact lists.
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.