LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent's unlicensed assistant telephones clients to discuss which coverage they should add. This is:
- Aacceptable where the agent reviews and signs every application the assistant produces
- unlicensed activity, since advising on coverage requires a licence of the appropriate class
- Cacceptable provided the assistant does not accept any premium payment during the call
- Dacceptable because the assistant is working under the direct supervision of a licensed agent
Correct answer: B) unlicensed activity, since advising on coverage requires a licence of the appropriate class
Unlicensed staff may schedule appointments, gather documents and handle administration. Discussing which coverage a client should take crosses into advising, which only a licensed person may do.
Why the other options are wrong
- AA later signature does not cure unlicensed advice already given.
- CThe licensing issue is the advice, not the handling of payments.
- DSupervision does not authorize an unlicensed person to advise.
Exam tip
Unlicensed staff may administer; only licensed people may advise.
Common mistake
Letting an assistant answer coverage questions for convenience.
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.