LLQP Ethics & Professional Practice · Component 1.2 · 60% of the exam
The agent's role relative to the parties is:
- AA party to the contract, since the agent signs the application alongside the applicant and the insurer relies on that signature
- BThe owner of the contract until delivery, when ownership passes to the client
- An intermediary representing the insurer within limited authority and advising the client, but not a party
- DThe beneficiary of last resort, entitled to the proceeds if no other beneficiary survives
Correct answer: C) An intermediary representing the insurer within limited authority and advising the client, but not a party
The agent's dual relationship (insurer's agent, client's advisor) creates the conflicts the ethics module addresses.
Why the other options are wrong
- AThe contract is between insurer and owner.
- BThe agent is never the owner in that capacity.
- DAgents may never benefit under a client's contract.
Exam tip
Agent: intermediary with duties to both, party to neither.
Common mistake
An agent being named beneficiary by a client.
What this tests
CISRO competency component 1.2 — Integrate into practice the legal aspects of insurance and annuity contracts — which is weighted at 60% of the Ethics & Professional Practice module. Written against the published curriculum.
More from component 1
- An 'assignee' of a life insurance policy is:
- A corporation as policyowner and beneficiary of a policy on a key employee:
- A 'trustee' named to receive proceeds on behalf of a beneficiary:
- The 'automatic premium loan' (APL) provision:
- A life insurance contract 'matures' when:
- The 'assignment' provision typically states that:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.