LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent stores client files on a personal cloud account shared with family members. This arrangement:
- Ais acceptable where the files are named in a way that does not identify the clients
- Bis acceptable because the agent controls the account and can remove access at any time
- Cis a matter for the agent's own preference, as storage methods are not regulated
- fails the safeguards requirement, since access is not properly restricted or secured
Correct answer: D) fails the safeguards requirement, since access is not properly restricted or secured
Privacy obligations require safeguards proportionate to the sensitivity of the information. Health and financial data need controlled access, encryption and a clear retention policy, none of which a shared family account provides.
Why the other options are wrong
- ANaming conventions do not protect the contents of the files.
- BThe ability to remove access later does not secure the information now.
- CSafeguarding personal information is a legal obligation.
Exam tip
Safeguards must match the sensitivity of the information held.
Common mistake
Using personal consumer storage for client health and financial records.
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.