LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An applicant refuses to answer several health questions, saying they are private. The agent must explain that:
- Athe questions may be left blank and the insurer will make its own enquiries later
- Bthe questions are optional because health information is protected by privacy legislation
- Cthe agent can supply likely answers based on the client's general appearance and manner
- complete answers are required, and an incomplete application cannot be properly assessed
Correct answer: D) complete answers are required, and an incomplete application cannot be properly assessed
Underwriting depends on full and accurate disclosure, and an omission can void the contract during the contestability period. Privacy legislation governs how information is handled, not whether the insurer may ask for it.
Why the other options are wrong
- AAn insurer cannot assess a risk from an incomplete application.
- BPrivacy law regulates handling, not the insurer's right to ask.
- CSupplying answers the client did not give is falsification.
Exam tip
Incomplete answers threaten the contract; explain why full disclosure protects the client.
Common mistake
Submitting an application with questions left unanswered.
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.