LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
An insurer declines to follow an ombudservice recommendation in a client's favour. The client may then:
- Aask the ombudservice to reconsider and issue a binding decision on the second review
- Brequire the regulator to enforce the recommendation against the insurer directly
- bring a civil claim in court, provided the limitation period has not yet expired
- Ddo nothing further, because the insurer's refusal ends every available avenue
Correct answer: C) bring a civil claim in court, provided the limitation period has not yet expired
The ombudservice process does not remove the right to sue. A client who is refused can take the matter to court, which is why the limitation period should be watched while a complaint is being reviewed.
Why the other options are wrong
- AThe ombudservice does not issue binding decisions on reconsideration.
- BRegulators do not enforce ombudservice recommendations on a client's behalf.
- DLitigation remains available within the limitation period.
Exam tip
Watch the limitation period while a complaint is under review.
Common mistake
Letting a limitation period run out during a lengthy complaint process.
What this tests
CISRO competency component 2.1 — 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.