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LLQP (Life Licence Qualification Program) Practice Exam · Question

What does the principle of 'Full Disclosure' require of a life insurance agent?

The principle of 'Full Disclosure' requires agents to provide all material facts that could influence a client's decision. This includes product features, risks

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Question: What does the principle of 'Full Disclosure' require of a life insurance agent?

Answer options:

  • Keeping client information confidential from the insurance company.
  • Disclosing only the positive historical performance of an investment. ✅ Providing the client with all material facts including the risks and fees associated with a product.
  • Sharing a client's health records with other agents in the office for 'second opinions'.

Correct answer: Providing the client with all material facts including the risks and fees associated with a product.

Explanation: The principle of 'Full Disclosure' requires agents to provide all material facts that could influence a client's decision. This includes product features, risks, costs, and any potential conflicts of interest. Insurance acts also require agents to disclose which companies they represent.

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