Reference no: EM132789317

Problem 1: Lynn, a member, is looking to expand her firm by working with various referral sources to recommend clients to her. Lynn has identified a particular local insurance agent, Geoff, who is very willing to refer clients to Lynn. In turn, Lynn will refer clients to Geoff for insurance services. There is no arrangement between Lynn and Geoff for the payment of any referral fees. In talking with Geoff about how he obtains clients, Lynn discovers that Geoff uses telemarketers who say that "Geoff is the best insurance agent in the state and anybody he refers to you is also the best in the state at what they do." What is Lynn's responsibility as it relates to the statement being made by Geoff's telemarketers?

a) Lynn has the responsibility to ascertain that Geoff's promotional efforts are within the bounds of the Rules of Conduct.
b) Since Geoff is not bound by the Rules of Conduct, Lynn has no responsibility regarding the statements being made by Geoff's telemarketers and whether they are within the bounds of the Rules of Conduct.
c) The telemarketers do not work for Lynn and she has no control over them. Thus she has no responsibility regarding whether their statements are within the bounds of the Rules of Conduct.
d) Both b. and c. are correct