LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
The agent's obligation regarding 'continuing suitability' means:
- AReviews after the sale are prohibited, since each review is an opportunity for the agent to generate a new commission
- BOnly the insurer reviews the client's coverage, through its annual statements and its own compliance function
- CSuitability is assessed once at the sale, and later changes in the client's life are the client's responsibility to raise
- The agent should review coverage periodically and at life events, update KYC, and recommend adjustments
Correct answer: D) The agent should review coverage periodically and at life events, update KYC, and recommend adjustments
Service duties continue after the sale; reviewing coverage at life events and updating the client's profile is part of the duty of care, and neglect can amount to negligence.
Why the other options are wrong
- AReviews are expected, not prohibited.
- BThe agent, not only the insurer, reviews the client.
- CSuitability does not end at sale.
Exam tip
Suitability is ongoing: reviews, updates, adjustments.
Common mistake
Never contacting a client after the sale.
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.