LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
Record-keeping obligations require the agent to:
- Maintain complete client files, including needs analysis, recommendations, disclosures and forms, for the required period
- BDestroy files annually to limit privacy exposure, since the insurer holds the official record of every contract
- CKeep only the signed applications, since the insurer's underwriting file contains everything else that could ever be needed
- DKeep nothing after the policy is delivered, since the contract and the insurer's records are the only documents that matter
Correct answer: A) Maintain complete client files, including needs analysis, recommendations, disclosures and forms, for the required period
Records evidence compliance and protect against complaints; retention periods commonly run several years after the relationship ends.
Why the other options are wrong
- BRetention periods apply.
- CFiles must be far broader than applications alone.
- DRecords are required.
Exam tip
Complete files, retained securely for the required period.
Common mistake
Having no record of the needs analysis.
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.