LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
The 'reasonable expectations' of a client include that the agent will:
- AAlways find the cheapest product on the market, since price is the only objective measure of value to a client
- BGuarantee that the products recommended will perform as illustrated, since the client relies entirely on the agent's expertise
- Understand their situation, recommend suitably, explain, disclose, protect information, service claims, and act honestly
- DNever make recommendations, since a client is entitled to reach their own conclusions from the information provided
Correct answer: C) Understand their situation, recommend suitably, explain, disclose, protect information, service claims, and act honestly
These expectations map to the agent's legal and ethical obligations.
Why the other options are wrong
- ASuitability matters, not price alone.
- BClients cannot reasonably expect guaranteed results.
- DMaking recommendations is the agent's role.
Exam tip
Meet reasonable expectations: understand, recommend, explain, disclose, protect, serve.
Common mistake
Treating the relationship as transactional.
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.