ETHICS, INSURANCE, AND YOU - DOING THE RIGHT THING

TABLE OF CONTENTS

SECTION 1: WHAT IS ETHICS AND WHY IS IT IMPORTANT	1
DEFINING ETHICS: A QUESTION OF MORALITY AND LEGALITY	5
MORAL DECISIONS: DEVELOPING AN ETHICAL SYSTEM	9
STANDARDS OF ETHICAL CONDUCT	12
LEGAL DECISIONS: MAINTAINING COMPLIANCE	20
THE DIFFERENCES AND SIMILARITIES BETWEEN MORALITY AND LEGALITY	21
BUILDING A SOLID FOUNDATION OF BUSINESS ETHICS	23
ESTABLISHING A STANDARD OF COMPLIANCE FOR CORPORATIONS	26
ESTABLISHING A STANDARD OF COMPLIANCE IN INSURANCE	28
PUTTING IT INTO PRACTICE: SOLVING ETHICAL DILEMMAS	34
SECTION SUMMARY	37
SECTION 2: THE ETHICAL BEHAVIOR OF THE INSURANCE AGENT	40
ETHICAL RESPONSIBILITIES: AGENTS TO THE INSURER	43
ACTUAL AUTHORITY	44
IMPLIED AUTHORITY	45
APPARENT AUTHORITY	46
ETHICAL RESPONSIBILITIES: AGENTS TO POLICYHOLDERS	53
SELLING TO NEEDS	58
SERVICING THE SALE	65
ETHICAL RESPONSIBILITIES: AGENTS TO THE PUBLIC	69
INFORMING THE PUBLIC	70
BUILDING PUBLIC PERCEPTIONS	75
DEVELOPING SKILLS AND COMPETENCY	75
REMAINING COMMITTED TO PROFESSIONALISM	76
UPHOLDING A PERSONAL CODE OF ETHICS	76
ETHICAL RESPONSIBILITIES: AGENTS TO THE GOVERNMENT	77
THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (NAIC)	78
STATE AND FEDERAL LAWS GOVERNING INSURANCE	80
SECTION SUMMARY	85
SECTION 3: PUTTING IT ALL TOGETHER– A CALL TO ACTION	88
CULTIVATING ETHICAL AND PROFESSIONAL CHARACTERISTICS	89
INTEGRITY	93
THE GOLDEN RULE	93
OBJECTIVES	94
EXCELLENCE	95
PROFIT	95
AVOIDING ETHICAL AND PROFESSIONAL OBSTACLES	96
CARELESS DOCUMENTATION	96
UNCLEAR COMMUNICATION	99
PROCRASTINATION	101
DISORGANIZATION	102
SECTION SUMMARY	104
COURSE REVIEW	105
SECTION 1: WHAT IS ETHICS AND WHY IS IT IMPORTANT?	105
SECTION 2: THE ETHICAL BEHAVIOR OF AN INSURANCE AGENT	107
SECTION 3: PUTTING IT ALL TOGETHER– A CALL TO ACTION	108
REFERENCES	110