LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
The obligation to 'cooperate with regulators and insurers' means the agent must:
- Respond honestly and promptly, produce records when required, attend interviews, and not obstruct or mislead
- BDestroy files that could be misinterpreted before responding, since the agent is entitled to present the record in the best light
- CRefuse to answer any question until the regulator has disclosed the identity of the complainant and the allegations in full
- DHire a lawyer and remain silent throughout, since anything the agent says can be used against them in a hearing
Correct answer: A) Respond honestly and promptly, produce records when required, attend interviews, and not obstruct or mislead
Cooperation is a licence condition; obstruction compounds any underlying breach.
Why the other options are wrong
- BDestroying evidence is an offence.
- CRefusing to answer a regulator is obstruction.
- DLegal advice is fine; non-cooperation is not.
Exam tip
Cooperate fully with investigations.
Common mistake
Ignoring a regulator's letter.
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.