Which of the following standards of conduct did Arianna contravene?

Arianna has been an insurance agent with Ideal Life for over 15 years, always working hard to grow her client base and keep her existing clients happy. Last week, she prepared an elaborate insurance plan for Raphael, a potential new client. But when they meet, Raphael tells her he wants a second opinion. Arianna tells him that she cannot allow him to show or discuss details of her work with a potential competitor. She explains it’s wrong for another agent to benefit from her work and knowledge.

Which of the following standards of conduct did Arianna contravene?
A . Duties and obligations towards the public.
B . Duties and obligations towards clients.
C . Duties and obligations towards other representatives, firms, independent partnerships, insurers and financial institutions.
D . Duties and obligations towards the profession.

View Answer

Answer: C

Explanation:

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Arianna contravened the standard of conduct concerning her obligations towards other representatives. LLQP guidelines emphasize professional courtesy and fair competition, which means agents should not prevent clients from seeking second opinions or attempting to restrict their ability to consult with other representatives.

Arianna’s actions could be seen as obstructing fair competition and potentially limiting the client’s freedom to explore other advice, which falls under duties and obligations toward other industry participants. Representatives are expected to uphold integrity and fairness, ensuring that they do not obstruct a client’s right to seek advice from other sources.