Ethics for the Insurance Professional - PowerPoint PPT Presentation

Loading...

PPT – Ethics for the Insurance Professional PowerPoint presentation | free to download - id: 6e1a86-YTM5M



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Ethics for the Insurance Professional

Description:

Should an insurance company marketing person or underwriter ... Business Ethics and Public Stakeholders Business Ethics and Public Stakeholders Duties owed by ... – PowerPoint PPT presentation

Number of Views:37
Avg rating:3.0/5.0
Slides: 28
Provided by: iiab
Learn more at: http://www.iiaba.net
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Ethics for the Insurance Professional


1
Ethics for the Insurance Professional
  • Presented by
  • Chris McLeod
  • CPCU,CIC,ARM,AAI,AIM,AIS,API,AU,CRIS,CPIW,CISR
  • President Smart Choice Agents Programt
  • High Point, NC

2
Statistics to Think About
  • 1 in 2 Americans genuinely believe you get ahead
    by politics and cheating, not by hard work
  • 1 in 6 Americans regulary drinks or uses drugs on
    the job

3
Statistics
  • 1 in 4 Americans expect to compromise their
    personal beliefs in order to get ahead in their
    current job
  • American workers frankly admit they spend more
    than 20 (8 hours a week) of their time at work
    totally goofing off

4
Statistics
  • Americans feel the 1 cause of business decline
    is low executive ethics!

5
Definitions
  • Ethic
  • A system or moral standards or values
  • A particular moral standard or value

6
Definitions
  • Ethics
  • The study of standards of conduct and moral
    judgment moral philosophy
  • They system or code of morals or a particular
    person. . . Group or profession

7
Definitions
  • Ethical
  • Conforming to moral standards conforming to
    standards of conduct of a given profession or
    group

8
My View
  • JUST DO WHAT IS RIGHT!!!!!!

9
Definitions
  • Moral
  • Honest
  • Integrity
  • Legal

10
Why be Ethical?
  • Social Responsibility
  • Contractual Responsibilities
  • Avoid Public Criticism
  • Avoid Government Regulation
  • Minimize Errors or Omissions

11
Core Principals
  • Is it honest, truthful, sincere, frank and
    candid?
  • Is there integrity? Am I using sound moral
    principles?
  • Is it fair to all?
  • Is there due consideration for the rights of
    others?
  • Do I accept responsibility for the consequences
    of my actions and decisions?

12
Core Principles
  • Is there diligence in the pursuit of excellence?
  • Most importantly, is it altruistic?

13
Why do people Act Unethically?
  • Inadequate training
  • Poor Reasoning
  • Self Deception
  • Self Protection

14
Business Ethics and Public Stakeholders
  • Insurance Agent and Insurance Company Management
    Relationships

15
Business Ethics and Public Stakeholders
  • Insurance Company Relationships
  • Duties owed by the Agent to the Insurance
    Company
  • What information do we need to transmit to the
    underwriter when applying for new coverage?
  • What are Material Underwriting Facts?
  • What should an agent do if there is a material
    change in the operation of an insured mid-term?

16
Duties owed by the Agent to the Company
  • Do you answer unasked questions form the
    underwriter?
  • Do you reveal information to the insurance
    company learned after the fact?
  • What should an agent tell one insurance company
    about another insurance company?

17
Duties owed by the Insurance Company to the Agent
  • Should the insurance company honor mistakes they
    make?
  • Should the insurance company tell the agent of
    changes in claims reserves?
  • Should an insurance company marketing person or
    underwriter tell another agent about an insured
    they quoted but the original agent did not
    deliver?

18
Duties owed by the Company to the insured
  • What information should the insurance company
    divulge to the agent about an insured.

19
Agents fiduciary responsibility to their
Insurance Company
  • Does an Agent have a responsibility to hold their
    represented insurance companies in high esteem
    and not reveal to others their methods of doing
    business?
  • Does an Agent have a responsibility to deliver an
    insurance companys quote to a prospective client?

20
Agents fiduciary responsibility
  • Should an agent give one insurance companys
    quote to another insurance company also
    represented by the agency?

21
Duties owed by the Agent to their Customer
  • What Duty is owed?
  • Is the duty to offer the lowest premium?
  • Is the duty to place the business with the most
    financially sound insurance company?
  • Does the Agent have a duty to identify ALL
    possible loss exposures to a customer, or is the
    duty to only insure what the client requests?

22
Duties owed by the Agent to the Customer
  • Should the Agent request renewal quotes from all
    represented insurance companies?
  • What responsibility does the Agent have to update
    coverage at renewal?
  • What Information can you share about a customer?

23
Miscellaneous Duties
  • Duties owed to the Public?
  • Competitive Advantage vs Ethical standards
  • Soliciting New Accounts

24
Legal vs Ethical
  • Unfair Trade Practices
  • Misrepresenting the terms of a policy
  • Making untrue statements
  • Making false statements regarding the financial
    condition of an insurer
  • Filing false statements
  • Unfair discrimination
  • Intentionally establishing unfair premiums

25
Ethical Decision Making
  • Is it an ethical question or legal issue
  • Gather all information
  • Who are the stakeholders and what are their
    rights?
  • What are the alternatives
  • Reach a decision
  • Monitor the decision

26
Scenarios
  • What are the ethical issues?
  • What should the Agent do?
  • With the Customer
  • With the Insurance Company
  • With the current Agency

27
Thank you!
  • On behalf of the Independent Insurance Agents and
    Brokers of South Carolina and Smart Choice we
    thank you for attending todays session.
  • Please complete the evaluation form provided
About PowerShow.com