LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
Asked to summarize the obligations owed to a client, the most complete answer is to:
- Amaintain the licence in good standing and complete the required education each period
- Bfollow the insurer's instructions precisely and complete all forms without any error
- Cplace the business with whichever insurer offers the strongest compensation and service support
- know the client, recommend suitably, disclose fully, protect information and document it
Correct answer: D) know the client, recommend suitably, disclose fully, protect information and document it
The obligations run from understanding the client's situation through to a suitable recommendation, honest disclosure, careful handling of information and a record that shows what was advised and why.
Why the other options are wrong
- ALicensing and education are conditions of practice, not the duty to the client.
- BAccurate paperwork is necessary but is not the whole duty.
- CCompensation and support are the agent's interests, not the client's.
Exam tip
Know, recommend, disclose, protect, document is the whole cycle.
Common mistake
Reducing professional duty to accurate paperwork and a valid licence.
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.