3-Hour NY Insurance CE Requirement

Table of Contents

 

  What is Ethics and Why is it Important?

1

    Defining Ethics: A Question of Mortality and Legality

4

    Moral Decisions: Developing an Ethical System

6

        Values/Laws/Rules and Standards/Social Norm

7

        Principles

8

    Standards of Ethical Conduct

9

Figure 1.1 – Excerpt from State Farm’s Code of Conduct – A Message

9

Figure 1.2 – Excerpt from State Farms’s Code of Conduct – Doing the Right Thing

10

Figure 1.3 – Excerpt from State Farm’s Code of Conduct – Making Good Decisions

11

          Check Yourself

12

          What is the takeaway?

14

    Legal Decisions: Maintaining Compliance

14

    The Differences and Similarities Between Morality and Legality

15

  Criminal Law/Civil Law

15

  How is morality and legality similar?

16

  But what is business ethics and should ethics be applied to businesses such as insurance?

16

    Building a Solid Foundation with Business Ethics

17

        Ethical Behavior Gives Confidence to Stakeholders

17

        Ethical Behavior Promotes Responsibility and Accountability

17

        Ethical Behavior Provides Guidance for Sound Decision Making

17

    Establishing a Standard of Compliance for Corporations

19

          United Nations Sustainable Development Goals (SDGs)

19

          UN Global Compact/ESG (Environment, Social, Governance)

19

          DEI (Diversity, Equity, Inclusion)

19

    Establishing a Standard of Compliance in Insurance

20

          Redlining/Racially Restrictive Covenants

20

          So, what happened with redlining?

21

          Check yourself

21

    Putting it into Practice: Solving Ethical Dilemmas

24

Figure 1.4 – Sample of Progressive’s Code of Business Conduct and Ethics

25

          What do you notice?

25

          What is the takeaway?

26

Unfair Discrimination: Theory Versus Reality

27

    A Federal Definition with a State Interpretation

27

          Reverse Preemption

27

          What is the significance of both of these factors?

27

    Disparate Impact and Proxy Discrimination in Insurance

28

          How do these terms relate to the ongoing debate of racial discrimination in insurance?

29

    Disparate Impact: A Question of Unintended Effect

29

    Proxy Discrimination: Finding Evidence that Discrimination is Intentional

30

          How could unintentional proxy discrimination occur?

32

          How could intentional proxy discrimination occur?

32

          What is the significance of proxy discrimination to insurance professionals?

32

    Identifying Subtle Forms of Discrimination in Insurance Practice

32

    Critical Analysis of Discrimination in the Insurance Industry

33

    Subtle Forms of Discrimination

35

        Credit Cards

35

        Zip Codes

37

        Big Data

41

          Why would this be a problem for the insurance industry?

43

New York State Department of Financial Services Sixty-Sixth Amendment to 11 NYCRR 52 (Insurance Regulation 62)

45

    Minimum Standards for Form, Content and Sale of Health Insurance, Including Standards of Full and Fair Disclosure

45

        Section 52.65 (10) is amended as follows:

45

New York State Department of Financial Services Fifth Amendment to 11 NYCRR 39 (Insurance Regulation 144)

46

    Minimum Standards for the New York State Partnership for Long-Term Care Program

46

        Paragraph 1 of subdivision (b) of section 39.3 is amended as follows:

46

        Paragraph 1 of subdivision (b) of section 39.4 is amended as follows:

47

        Paragraph 1 of subdivision (b) of section 39.5 is amended as follows:

48

        Paragraph 1 of subdivision (b) of section 39.6 is amended as follows:

48

        Paragraph 1 of subdivision (b) of section 39.7 is amended as follows:

49

New York State Department of Financial Services Second Amendment to 11 NYCRR 450 (Insurance regulation 219) Pharmacy Benefits Bureau

50

        Section 450.1 is amended as follows:

50

        A new Part 453 is added as follows:

52

Part 453 (Insurance Regulation 223) Pharmacy Benefit Manager Assessments

52

        Section 453.1 Applicability

52

        Section 453.2 Billing and assessment process

52

        Section 453.3 Computation of assessment

52

        Section 453.4 Penalties for noncompliance

53

        Section 453.5 Special assessments

53

        A new Part 454 is added as follows

54

Part 454 (Insurance Regulation 224)

54

Filings and Other Requirements for Issuance and Maintenance of a License

54

        Section 454.1 Required filings for issuance of a license

54

        Section 454.2 Certification of cybersecurity compliance

56

        A new Part 455 is added as follows:

57

Part 455 (Insurance Regulation 225) Reporting and Record Keeping Requirements

57

        Section 455.1 Standards for maintenance and reproduction of records

57

        Section 455.2 Required records to be maintained

58

        Section 455.3 Required disclosure to the department

58

        Section 455.4 Annual reporting requirements

58