LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent takes over the book of a retiring colleague. Toward those clients the agent should:
- Arecommend replacing the older contracts so the portfolio is consistent across the book
- Bassume the previous agent's files are complete and simply continue servicing the contracts
- introduce himself, confirm the information held and review whether the coverage still fits
- Dcontact only those clients whose policies are due to lapse within the coming year
Correct answer: C) introduce himself, confirm the information held and review whether the coverage still fits
Inherited clients are new clients to this agent. The relationship starts with disclosure, confirmation of the information held and a review of whether the coverage still matches the client's circumstances.
Why the other options are wrong
- AWholesale replacement for consistency is not a client-driven reason.
- BThe agent cannot rely on another agent's records without verifying them.
- DEvery client in the book is owed the agent's disclosure and attention.
Exam tip
An inherited client is a new client: disclose, verify and review.
Common mistake
Servicing an inherited book without ever introducing yourself or verifying the files.
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.