LLQP Ethics & Professional Practice · Component 2.1 · 40% of the exam
When a client asks an agent 'who protects me if something goes wrong?', the best answer covers:
- A'Assuris covers everything', since the industry fund stands behind every product an insurer sells and every promise an agent makes
- B'Only the courts', since regulators and ombudservices have no power to order an insurer to pay
- C'Nobody but me', since the client's protection rests on the agent's personal integrity and service
- The insurer's process and OLHI, the regulator for conduct, Assuris for insolvency, the privacy commissioner, courts, and E&O
Correct answer: D) The insurer's process and OLHI, the regulator for conduct, Assuris for insolvency, the privacy commissioner, courts, and E&O
A complete, honest map of protections — matched to the type of problem — builds informed trust and avoids overstating any single body's role, such as claiming Assuris covers everything.
Why the other options are wrong
- AAssuris covers insurer insolvency only.
- BCourts are only one of several protections.
- CTelling a client nobody else protects them is misleading.
Exam tip
Map protections to the type of problem.
Common mistake
Overstating any single body's role.
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.