LLQP Ethics & Professional Practice · Component 2.2 · 40% of the exam
When an agent leaves an insurer or MGA, their obligation regarding clients is to:
- AReplace all of the clients' policies with the new insurer's products, so that servicing continues under one contract
- BLeave the clients to the former insurer without notice, since the agent's contractual relationship with them has ended
- CTake all client files without telling the former insurer or MGA, since the clients belong to the agent who served them
- Follow contract and privacy rules on records, keep clients serviced, avoid disparagement, and not induce replacements
Correct answer: D) Follow contract and privacy rules on records, keep clients serviced, avoid disparagement, and not induce replacements
Transitions are a classic churning and privacy risk; orderly, disclosed handling is required.
Why the other options are wrong
- AReplacing all policies on a move is churning.
- BAbandoning clients breaches the service duty.
- CTaking files secretly breaches privacy and contract.
Exam tip
Transition: respect record ownership, service continuity, no churning.
Common mistake
Moving clients' policies to the new insurer without a suitability basis.
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.