LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
The obligation to 'deliver the policy promptly' exists because:
- AThe agent's commission is paid on delivery, so a delay simply postpones the agent's own income
- BInsurers prefer speed for administrative reasons, since undelivered policies clutter their pending files
- CThere is no particular reason, since the client is covered from the date the insurer approves the application
- Coverage may not be effective until delivery, the free-look runs from delivery, and delay exposes the client and the agent
Correct answer: D) Coverage may not be effective until delivery, the free-look runs from delivery, and delay exposes the client and the agent
Delivery is a duty, not a convenience: coverage and the free-look period depend on it, and insurers set delivery deadlines after which an undelivered policy may be cancelled.
Why the other options are wrong
- AThe client's protection is the reason, not commission.
- BThe reason is client protection, not insurer preference.
- CThere are real reasons for prompt delivery.
Exam tip
Deliver promptly; coverage and free-look depend on it.
Common mistake
Holding a policy for weeks waiting for a convenient meeting.
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.