LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent wants to quote a satisfied client's praise in a brochure. Before doing so the agent must:
- Apay the client a fee, since a testimonial is a commercial service being provided
- Bobtain the regulator's written approval of the brochure before it may be distributed
- Cdo nothing, because a compliment given freely may be republished without restriction
- obtain the client's consent and ensure the quotation is accurate and not misleading
Correct answer: D) obtain the client's consent and ensure the quotation is accurate and not misleading
Using a client's words and identity is a use of personal information requiring consent. The testimonial must also be genuine and must not imply guaranteed results or an endorsement the client never gave.
Why the other options are wrong
- APaying for a testimonial would make it an inducement rather than an opinion.
- BAdvertising is not pre-approved by the regulator.
- CRepublishing a client's words and name requires their consent.
Exam tip
Testimonials need consent, accuracy and no implied guarantee.
Common mistake
Publishing a client's kind words without asking permission first.
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.