LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
The agent's obligation to 'explain the policy at delivery' includes:
- Reviewing coverage, premiums, exclusions, amendments, riders, the designation, the free-look and how to claim
- BOnly the premium and payment schedule, since the client's main concern at delivery is what the policy will cost
- COnly the free-look period, since that is the one right the client must exercise within a short time
- DNothing beyond handing over the document, since the client is capable of reading the policy at leisure
Correct answer: A) Reviewing coverage, premiums, exclusions, amendments, riders, the designation, the free-look and how to claim
The delivery explanation is the last check on informed consent — the point at which the client confirms the policy is what they agreed to and understands its terms and their rights.
Why the other options are wrong
- BExplanation covers far more than the premium.
- CExplanation covers far more than the free-look.
- DExplanation is a duty at delivery.
Exam tip
Delivery: full walk-through and questions.
Common mistake
Leaving the policy at reception.
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.