LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
'Professional judgment' in ethics means the agent should:
- Apply the principles behind the rules where they are silent, asking whether an informed observer would see the conduct as fair
- BDo whatever the rules do not expressly prohibit, since the regulator has defined the limits of acceptable conduct in the code
- CFollow the rules mechanically and take no position where they are silent, since interpretation is the regulator's job
- DAsk the client to decide the ethical question, since the client is the person whose interests are at stake
Correct answer: A) Apply the principles behind the rules where they are silent, asking whether an informed observer would see the conduct as fair
The ethics module expects principle-based judgment, not loophole-seeking.
Why the other options are wrong
- BNot-prohibited is not the standard.
- CPrinciples fill the gaps in the rules.
- DThe agent bears responsibility for ethical judgment.
Exam tip
Principles over loopholes; the reasonable-observer test.
Common mistake
Justifying conduct because 'no rule says I can't'.
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.