LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
An insurer asks an agent to obtain a client's consent to share information with a reinsurer. The agent should:
- Atell the client the consent is compulsory and refusal will end the application
- Bsubmit the file without the consent and let the insurer approach the client directly
- explain the purpose and scope to the client and obtain informed consent
- Dsign the consent on the client's behalf, since the sharing is a routine underwriting step
Correct answer: C) explain the purpose and scope to the client and obtain informed consent
Consent must be informed, so the client should understand who will receive the information, why and for how long. Declining may affect whether the application can proceed, but that is the client's decision to make.
Why the other options are wrong
- AConsent is a choice, even where refusal has consequences.
- BObtaining the consent is part of the agent's role in the application.
- DConsent must come from the client personally.
Exam tip
Informed consent means the client understands the purpose and the recipients.
Common mistake
Presenting a consent form as a signature to be collected without explanation.
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.