LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
If an agent's own licence lapses (missed renewal or CE), the agent must:
- ASell under a colleague's licence until the renewal is processed, so clients are not left without service
- BKeep selling while the renewal is pending, since a lapse caused by an administrative delay is not the agent's fault
- Stop all licensed activity until reinstated; selling while unlicensed is an offence with lasting consequences
- DSell only renewals and service existing clients, since the restriction applies to new business rather than existing policies
Correct answer: C) Stop all licensed activity until reinstated; selling while unlicensed is an offence with lasting consequences
Licence status is binary; there is no grace for selling unlicensed.
Why the other options are wrong
- ASelling under a colleague is fronting.
- BSelling on a lapsed licence is an offence.
- DServicing existing business is licensed activity too.
Exam tip
Lapsed licence = stop everything until reinstated.
Common mistake
Continuing to service clients during a licence lapse.
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.