LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent receives a subpoena for client records. The agent should:
- ADestroy the records before the return date, since the agent cannot produce what no longer exists
- Comply with the lawful demand, limit disclosure to what is required, inform compliance, and consider notifying the client
- CIgnore the subpoena, since privacy law prohibits the agent from disclosing client information to anyone without consent
- DProvide the entire file to anyone who asks for it, since a subpoena removes all confidentiality from the records it names
Correct answer: B) Comply with the lawful demand, limit disclosure to what is required, inform compliance, and consider notifying the client
Legal compulsion is an exception to consent, but disclosure should be limited to the demand.
Why the other options are wrong
- ADestroying subpoenaed records is obstruction.
- CIgnoring a subpoena is contempt of court.
- DRecords go only to lawful demands, and only what is required.
Exam tip
Lawful demand: comply within its scope; inform compliance.
Common mistake
Handing over an entire file when only specific documents were demanded.
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.