LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent uses a social media post claiming 'tax-free retirement income guaranteed' for a UL policy. This is:
- ARequired by the insurer, since universal life is marketed to the public on the basis of its tax-sheltered growth
- Misleading advertising: loans may be taxable, returns are not guaranteed, and the material was likely unapproved
- CAcceptable, since social media posts are informal and the public does not treat them as formal advice
- DAcceptable if a disclaimer in small print explains that individual results may vary and returns are not guaranteed by the insurer
Correct answer: B) Misleading advertising: loans may be taxable, returns are not guaranteed, and the material was likely unapproved
Guarantee language and unapproved claims are common enforcement targets.
Why the other options are wrong
- ASuch claims are never required.
- CThe post is misleading, not acceptable.
- DSmall print does not cure a misleading headline.
Exam tip
No 'guaranteed' claims for non-guaranteed features; approved materials only.
Common mistake
Repeating marketing jargon as fact online.
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.