LLQP Ethics & Professional Practice · Component 1.1 · 60% of the exam
The 'fair treatment of customers' (FTC) guidance issued by CCIR and CISRO expects agents and insurers to:
- Put customers' interests at the centre through suitable advice, disclosure, conflict management and fair claims
- BMaximize sales of insurance products, since more coverage in force is the best outcome for customers overall
- CSell only the sponsoring insurer's proprietary products, so that the customer receives a consistent standard of service
- DRefer complaints to the regulator rather than handling them, since the insurer cannot be impartial about its own conduct
Correct answer: A) Put customers' interests at the centre through suitable advice, disclosure, conflict management and fair claims
FTC is the conduct standard regulators use to assess agents and insurers. It informs suitability, disclosure and conflict rules.
Why the other options are wrong
- BSales targets are subordinate to customer outcomes.
- CProduct choice should suit the customer.
- DComplaint handling is an FTC element.
Exam tip
FTC principles run through the whole sales and service cycle.
Common mistake
Treating FTC as a slogan rather than a conduct standard.
What this tests
CISRO competency component 1.1 — 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.