LLQP Ethics & Professional Practice · Component 1.3 · 60% of the exam
At claim, a family shows that the agent recorded an answer on the application differently from what the client actually said. The agent's exposure includes:
- Anothing, because responsibility for the application's accuracy rests with the applicant
- Ba duty to pay the claim personally out of the agent's own errors and omissions coverage
- a regulatory complaint and a civil claim, since the agent completed the form inaccurately
- Da liability limited to returning the commission earned on the original transaction
Correct answer: C) a regulatory complaint and a civil claim, since the agent completed the form inaccurately
An agent who records answers must record them accurately. An error that contributes to a denied claim can lead to discipline, a negligence claim and a claim against the errors and omissions policy.
Why the other options are wrong
- AThe applicant signs, but the agent is responsible for what the agent writes.
- BThe insurance responds to a claim; the agent does not pay the benefit personally.
- DExposure is not limited to the commission on the transaction.
Exam tip
Read the completed answers back to the client before they sign.
Common mistake
Relying on the client's signature to cure an answer the agent wrote wrongly.
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.