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LLQP (Life Licence Qualification Program) Practice Exam · Question

What is the primary responsibility of an agent under 'Needs-Based Selling'?

The principle of 'Needs-Based Selling' (or the 'Suitability' standard) requires the agent to conduct a thorough analysis of the client's financial situation and

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Question: What is the primary responsibility of an agent under 'Needs-Based Selling'?

Answer options: ✅ Analyze the client's financial situation and recommend products that fit their specific goals.

  • Recommend products that offer the highest commission to ensure the agent's business is sustainable.
  • Sell the same popular product to every client to ensure consistency.
  • Let the client choose any product they want without providing any advice or analysis.

Correct answer: Analyze the client's financial situation and recommend products that fit their specific goals.

Explanation: The principle of 'Needs-Based Selling' (or the 'Suitability' standard) requires the agent to conduct a thorough analysis of the client's financial situation and goals before recommending a product. Selling based on commission size or a 'one-size-fits-all' approach is a violation of professional ethics and provincial regulations.

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