LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
The requirement for a 'complaint-handling process' at the insurer level (with a designated complaints officer and public information) exists because:
- AIt is optional, and most insurers adopt one only to improve their standing with rating agencies
- BInsurers favour formal processes because they generate the documentation needed to defend claim decisions in court if the client sues
- COLHI demands it as a condition of membership, so that its own caseload is limited to unresolved complaints
- Regulators and FTC guidance require accessible, fair and timely complaint handling, with escalation to OLHI explained
Correct answer: D) Regulators and FTC guidance require accessible, fair and timely complaint handling, with escalation to OLHI explained
Agents should know their insurers' complaint processes and give clients the information.
Why the other options are wrong
- AA complaint-handling process is required, not optional.
- BIt is consumer protection, not litigation defence.
- CRegulators require it; OLHI is the next step.
Exam tip
Know and communicate the insurer's complaint process.
Common mistake
Handling a complaint informally and never logging it.
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.