LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
The agent's responsibility for 'illustrations' is to:
- AShow only the best-case scenario, since a client who sees a pessimistic projection will not buy a product they need
- Use approved illustrations, explain guaranteed versus non-guaranteed, show alternatives, and keep a signed copy
- CAvoid illustrations altogether, since any projection of non-guaranteed values risks being taken as a promise
- DPrepare personal spreadsheets tailored to the client, since the insurer's standard illustrations are hard to read
Correct answer: B) Use approved illustrations, explain guaranteed versus non-guaranteed, show alternatives, and keep a signed copy
Illustration discipline prevents the most common misrepresentation complaints in permanent insurance.
Why the other options are wrong
- AAlternative scenarios are required.
- CIllustrations are useful when used properly.
- DUnapproved materials are prohibited.
Exam tip
Approved illustrations; guaranteed vs not; alternatives; signed copy.
Common mistake
Presenting a UL illustration at an optimistic rate only.
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.