LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
The agent's obligation regarding 'insurer's underwriting guidelines' is to:
- Follow them honestly, presenting the risk accurately and not manipulating applications for better terms
- BCircumvent them where the client would otherwise be declined, since the agent's duty is to obtain coverage for the client
- CDisregard them, since underwriting guidelines are internal insurer documents that do not bind the agent
- DRewrite them for the client's file, so the application presents the risk in the way the insurer will accept
Correct answer: A) Follow them honestly, presenting the risk accurately and not manipulating applications for better terms
Applications ask about prior declines; concealment is misrepresentation.
Why the other options are wrong
- BCircumventing underwriting guidelines is misconduct.
- CGuidelines must be followed honestly.
- DUnderwriting guidelines are the insurer's to write.
Exam tip
Present risks honestly; disclose prior declines when asked.
Common mistake
Omitting a prior decline on a new application.
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.