LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An agent whose colleague has left the firm is approached by that colleague's clients. The agent should:
- Arefuse to help them, since they were and remain another agent's clients entirely
- Bcontact every one of the departed agent's former clients to solicit their business at once
- Ctransfer their files to the departed agent's new firm without asking the clients first
- serve them if they choose to stay, following the usual disclosure and suitability steps
Correct answer: D) serve them if they choose to stay, following the usual disclosure and suitability steps
Clients choose their agent. Those who approach the firm may be served in the ordinary way, with disclosure and a fresh review, while any proactive solicitation must respect the contracts and privacy rules that apply.
Why the other options are wrong
- AA client who asks for help should not be turned away.
- BMass solicitation may breach contractual and privacy obligations.
- CMoving personal information without instruction breaches privacy.
Exam tip
Serve clients who come to you; be careful about proactively soliciting them.
Common mistake
Treating a departed colleague's client list as a prospecting list.
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.