LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
When an agent lacks expertise in a client's need (for example, complex corporate tax planning), the agent should:
- Recognize the limits of their competence and refer to or collaborate with qualified professionals
- BGive the best answer they can from general knowledge, since a client is better served by some advice than by none
- CPresent the advice confidently, since admitting a gap in expertise would undermine the client's trust in the agent
- DDecline to help the client at all, since any involvement in a matter beyond the agent's expertise creates liability
Correct answer: A) Recognize the limits of their competence and refer to or collaborate with qualified professionals
Competence includes knowing one's limits; referrals are professional conduct.
Why the other options are wrong
- BGuessing at advice outside one's competence is negligent.
- CPretending expertise is misrepresentation.
- DThe agent should serve within competence, not withdraw.
Exam tip
Know your limits; refer or collaborate.
Common mistake
Giving corporate tax advice without qualification.
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.