LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
The 'Ombudsman for Banking Services and Investments' (OBSI) is relevant to a dual-licensed agent because:
- AIt is irrelevant to an insurance agent, since OBSI deals only with complaints against banks
- BIt handles life insurance complaints for agents who are also registered to sell mutual funds through a dealer
- CIt licenses dual-licensed agents for their securities activities, in place of the securities regulator
- It handles complaints about mutual fund dealers, so a mutual fund complaint goes to OBSI and a seg fund complaint to OLHI
Correct answer: D) It handles complaints about mutual fund dealers, so a mutual fund complaint goes to OBSI and a seg fund complaint to OLHI
Dual-licensed agents must route complaints to the correct ombudservice.
Why the other options are wrong
- AOBSI is relevant for mutual fund business.
- BOLHI handles insurance complaints.
- COBSI does not license agents.
Exam tip
OBSI = investments/banking; OLHI = life and health insurance.
Common mistake
Sending a seg fund complaint to OBSI.
What this tests
CISRO competency component 2.1 — 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.