New York Mandated Curriculum:
Law, Ethics, Diversity, and Flood Risk

Table of Contents

Chapter 1: New York Insurance Law / Section 1	1
Introduction & Scope	1
The Role of the Department of Financial Services	1
Structure of the Insurance Law	2
The Purpose of Regulation	2
DFS Authority and Enforcement Powers	2
Relationship Between State and Federal Oversight	3
Side Note: The McCarran-Ferguson Act	3
Why Continuing Education on Insurance Law Matters	4
The New York Difference	4
Example	5
Key Themes for The Law Portion of this Course	5
Section 2 – Licensing and Appointment Requirements	6
Who Must Be Licensed	6
Qualification Requirements	6
Side Note: What “Good Moral Character” Means	7
Appointments and the Agent–Insurer Relationship	7
Renewal and Continuing Education	8
Fiduciary Responsibilities and Premium Funds	9
Recordkeeping Requirements	9
Grounds for Denial, Suspension, or Revocation	9
Responsibilities of Insurers Toward Producers	10
Non-Resident and Temporary Licensing	10
Public Access and Verification	10
Summary	11
Section 3 – Conduct of Insurance Professionals	11
Fiduciary Duty and Trust Accounts	11
Example	11
Honesty and Fair Dealing	12
Unfair and Deceptive Practices	12
Example	12
Claims-Handling Responsibilities	13
Advertising and Public Communications	13
Example	14
Conflicts of Interest	14
Professional Competence and Delegation	14
Disciplinary Process and Penalties	14
Summary	15
Section 4 – Key Consumer Protection Regulations	15
Regulation 64 – Fair Claims Settlement Practices	15
Claims Communication and Documentation	16
Regulation 90 – Automobile Insurance Practices	16
Article 24 – Unfair Trade Practices	17
Example	17
Complaint Handling and Consumer Assistance	17
Summary	18
Section 5 – Marketing, Advertising, and Emerging Issues	18
Truthful and Non-Misleading Advertising	18
Social Media and Digital Marketing	19
Example	19
Use of Senior or Professional Designations	19
Inducements, Rebates, and Gifts	20
Example	20
Use of Comparative Advertising	20
Emerging Issues in P&C Marketing	20
Summary	21
Section 6 – Case Studies, Agent Notes, and Summary	21
Case Study 1 – The Forgotten Notice	21
Case Study 2 – The Enthusiastic Advertiser	22
Case Study 3 – The Unlicensed Assistant	22
Case Study 4 – The Withheld Premium	23
Lessons	23
The Broader Picture – Why Compliance Matters	23
Final Summary	24
Chapter 2: Ethics & Professionalism	25
Section 1 – The Meaning of Professional Ethics	25
The Role of Public Trust	25
Ethics Beyond Compliance	26
Example	26
Section 2 – The Professional Identity of the Producer	26
Duty to the Client	26
Duty to the Insurer and Public	27
Fiduciary Mindset	27
Example	27
Continuous Competence	27
Balancing Self-Interest and Service	28
Section 3 – Core Ethical Principles in the Property and Casualty Context	28
1. Integrity – The Foundation of Trust	29
Example	29
2. Objectivity – Serving the Client’s Real Interests	29
Example	29
3. Competence – Knowing Before Advising	30
Example	30
4. Confidentiality – Safeguarding Information	30
Example	30
5. Fairness – Equal Treatment and the Elimination of Bias	31
Example	31
6. Accountability – Owning Decisions and Learning from Them	31
Example	31
Bringing the Principles Together	32
Section 4 – Ethical Decision-Making Models	32
Why a Model Matters	32
The Five-Step Ethical Framework	33
1. Identify the Ethical Issue	33
Example	33
2. Gather Facts and Obligations	33
Example	34
3. Evaluate Opinions Through an Ethical Lens	34
Example	34
4. Decide and Act Transparently	34
5. Document and Reflect	35
Two Practical Scenarios	35
Scenario A – The Rushed Renewal	35
Scenario B – The Adjuster’s Shortcut	35
Integrating the Model into Daily Practice	36
Section 5 – Conflicts of Interest and Transparency in Compensation	36
The Ethical Basis for Disclosure	36
Understanding Conflicts of Interest	37
Example	37
Dual Capacity – Agent and Consultant	37
Contingent Commissions and Incentive Programs	38
Example	38
Gifts, Entertainment, and Personal Relationships	38
Practical Habits for Transparency	39
When in Doubt — Disclose or Decline	39
Summary	39
Section 6 – Ethical Communication and the Duty to Inform	40
The Nature of Ethical Communication	40
The Duty to Inform	40
Example	41
Communicating Bad News	41
Example	41
Listening as an Ethical Skill	41
Example	42
Documentation – The Final Form of Communication	42
Summary	42
Section 7 – Professionalism in Difficult Situations	42
Handling Pressure from Clients	42
Example	43
Responding to Mistakes	43
Example	43
Managing Conflicts within the Workplace	44
Dealing with Co-Workers’ or Partners’ Errors	44
Example	44
Balancing Compassion with Compliance	45
Example	45
Reputation and Recovery	45
Summary	45
Section 8 – Ethics in the Digital Age	46
Data Stewardship and Confidentiality	46
Example	46
The DFS Cybersecurity Standard	47
Email, Text, and Remote Communication	47
Example	47
Social media and Online Professionalism	47
Example	48
Artificial Intelligence and Automation	48
Maintaining Professional Boundaries in Remote Work	48
Example	48
Summary	49
Section 9 – Summary: Ethics as the Producer’s Legacy	50
Chapter 3 - Diversity, Inclusion, and the Elimination of Bias in Insurance Practice	51
Section 1 – Introduction	51
Defining the Core Terms	51
The New York Imperative	51
Why Focus on Bias	52
Section 2 – Diversity and Inclusion in the New York Insurance Landscape	52
A Diverse Marketplace	52
Example	52
Inclusion as Everyday Practice	53
The Ethical Dimension of Inclusion	53
Leadership and Organizational Responsibility	53
Example	54
From Inclusion to Bias Awareness	54
Section 3 – Understanding Bias: The Hidden Influencer	54
Defining Bias	54
Why Bias Persists	55
The Insurance Context	55
Structural Bias	56
Bias and Perception	56
Example	56
Self-Awareness as the First Line of Defense	57
Debiasing in Practice	57
Bias, Ethics, and Professional Identity	57
Section 4 – Bias in Insurance Practice: Where It Appears and What It Costs	58
1. Bias in Underwriting and Risk Evaluation	58
Example	58
2. Bias in Claims Handling	59
Example	59
3. Bias in Marketing and Prospecting	59
Example	59
4. Bias in Customer Service and Communication	60
Example	60
5. Bias in Technology and Data Analytics	60
Example	60
6. The Cost of Bias	61
Section 5 – The New York Perspective: Law, Regulation, and DFS Oversight	61
The Foundation: New York Insurance Law	61
DFS’s Expanding Focus: Beyond Traditional Discrimination	62
Example	62
Unfair Discrimination and Predictive Models	62
Producer Obligations under DFS Oversight	63
Example	63
Ethics and Enforcement	63
Section 6 – Recognizing Personal and Structural Bias	64
Personal Bias: The Human Factor	64
Example	64
Cognitive Triggers and Workplace Pressure	65
Structural Bias: When Systems Reinforce Inequality	65
Example	65
Recognizing Structural Bias through Data	66
The Interaction between Personal and Structural Bias	66
From Recognition to Responsibility	66
Example	66
Section 7 – Building a Culture that Counters Bias	67
Leadership Sets the Tone	67
Psychological Safety and Honest Dialogue	68
Example	68
Practical Structures that Support Fairness	68
Small Agencies, Big Impact	69
Example	69
Accountability and Feedback Loops	69
The Long View	70
Section 8 – Case Studies and Reflection Exercises	70
Case 1 – The ZIP-Code Surcharge	70
Case 2 – The Two Claimants	71
Case 3 – The Cultural Miscommunication	71
Case 4 – The Algorithmic Denial	72
Case 5 – The Hiring Habit	72
Summary	73
Section 9 – Summary: From Awareness to Professional Equity	74
Chapter 4: Flood Insurance	75
Section 1 – Why Flood Insurance, Why New York	75
The Gap in Traditional Coverage	75
Community Participation – The Key to Eligibility	76
Why Flood Matters to the Profession	76
New York’s Varied Flood Risks	76
Section 2 – NFIP Fundamentals Every New York Producer Must Know	77
How the NFIP Is Delivered	77
The Three Policy Forms	77
Risk Rating 2.0 – How Flood Premiums Are Determined	78
What the SFIP Covers – and What It Does Not	78
Waiting Periods and Effective Dates	78
Mandatory Purchase and Producer Documentation	79
Example	79
Increased Cost of Compliance (ICC)	79
The Community’s Responsibility	79
Private Flood Insurance – An Emerging Option	80
Example	80
Summary	80
Section 3 – Flood Mapping and Mandatory Purchase Essentials	81
Flood Insurance Rate Maps (FIRMs)	81
Map Revisions and Letters of Map Change	81
Mandatory Purchase Requirements	82
Producer Responsibilities and Documentation	82
Example	83
Map Accuracy and Public Perception	83
New York City’s Mapping Model	83
Section 4 – Claims: From First Notice to Proof of Loss	84
Defining a Flood Loss	84
First Notice of Loss (FNOL)	85
The Adjuster’s Role	85
Proof of Loss – The Critical Step	86
Partial Payments and Reinspection	86
Increased Cost of Compliance (ICC) Claims	86
Appeals and Dispute Resolution	87
Common Claim Pitfalls:	87
Example	87
DFS Oversight and Disaster Response	88
Section 5 – New York Floodplain Management and the Community’s Role	89
How the Partnership Works	89
Local Floodplain Administrators	89
Building and Development Requirements	90
The Community Rating System (CRS)	90
Example	91
Why Floodplain Management Matters to Producers	91
Section 6 – Private and Excess Flood Insurance in New York	92
The Emergence of Private Flood Markets	92
Primary Flood Coverage	92
Excess Flood Coverage	93
Comparing NFIP and Private Flood	93
Example	94
When to Recommend Private or Excess Flood	94
Professional Best Practices	94
Section 7 – Compliance and Training	95
Training Requirements	95
Maintaining Professional Competence	96
Agency-Level Compliance	96
Example	96
Ethical Imperative	96
Section 8 – Producer Tools: Checklists, Scripts, and Mini-Case Studies	97
1. Producer’s Flood-Offer Checklist	97
2. Simple Scripts for Common Conversations	98
3. Mini-Case Studies	99
Section 9 – Summary: The New York Approach to Flood Insurance	100

Thank you,

United Insurance Educators, Inc.