LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
The best summary of an agent's ethical obligations is to:
- ASell as much as possible within the letter of the law, since anything the law permits is by definition ethical and in the client's interest
- BAvoid all risk by never advising, since an agent who makes no recommendation cannot be accused of an unsuitable one
- CDo what the MGA instructs, since the MGA carries the compliance responsibility for the agents it sponsors
- Act with integrity and competence in the client's interest: know, recommend, disclose, manage conflicts, protect, serve
Correct answer: D) Act with integrity and competence in the client's interest: know, recommend, disclose, manage conflicts, protect, serve
This synthesis captures the module's second competency component.
Why the other options are wrong
- ALegality is the floor, not the standard.
- BNever advising abandons the agent's role.
- CEthical accountability is personal.
Exam tip
Integrity + competence + client interest + compliance + service.
Common mistake
Confusing 'not illegal' with 'ethical'.
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 provincial regulator's power to conduct 'market conduct examinations' means:
Practice the whole Ethics & Professional Practice module
Timed sets weighted like the exam, and review of every question you miss. Free to start.