LLQP Ethics & Professional Practice · Component 1.3 · 60% of the exam
An applicant signs an application written in a language he cannot read. Before submitting it the agent must:
- Aask a bystander to translate and then have that person sign the form instead
- Bcomplete the answers personally based on what seems most likely to be accurate
- Csubmit it, since a signature is binding regardless of what the signer understood
- take steps to ensure he understood the questions and his answers, and record how
Correct answer: D) take steps to ensure he understood the questions and his answers, and record how
The answers must be the applicant's own and given with understanding. The agent should use translated material or an interpreter, confirm understanding and note in the file how that was achieved.
Why the other options are wrong
- AOnly the applicant may sign the application.
- BAnswers must come from the applicant, never from the agent's assumptions.
- CA signature on answers the client did not understand invites a later dispute.
Exam tip
Understanding must be real and the steps taken must be recorded.
Common mistake
Treating a signature as proof that the applicant understood the questions.
What this tests
CISRO competency component 1.3 — Integrate into practice the legal aspects of insurance and annuity contracts — which is weighted at 60% of the Ethics & Professional Practice module. Written against the published curriculum.
More from component 1
- An 'assignee' of a life insurance policy is:
- A corporation as policyowner and beneficiary of a policy on a key employee:
- A 'trustee' named to receive proceeds on behalf of a beneficiary:
- The 'automatic premium loan' (APL) provision:
- A life insurance contract 'matures' when:
- The 'assignment' provision typically states that:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.