Remaining Ethical in Insurance

Table of Contents

 

Chapter 1: Looking at the General Picture

1

 

  Ethics by definition

2

 

  Mores by definition

2

 

  Ethical Expectations

3

 

Easier to say what is NOT ethical

3

Chapter 2: Who Needs Ethics

6

 

Ethics are a form of excellence

6

 

  Definition of ethics changes

7

 

  Creating Excellence

8

 

  Creative Insights

8

 

  Sensitivity

9

 

  Vision

9

 

  Versatility

9

 

  Focus

10

 

  Patience

10

Chapter 3: Avoiding Deadly Attitudes

12

 

Value judgments

13

 

10 Ethical Attitudes

14

 

#1 “I only need one more sale to meet my quota.”

15

 

#2 “She doesn’t need this money. In fact, she won’t even miss it.”

16

 

#3 “Okay, the boss said to simply say this pitch & not worry about understanding the product.”

17

 

#4 “I know my product simply mimics the one he already has, but I’m going to replace it anyway.”

17

 

#5 “What he doesn’t know won’t hurt him… or me.”

18

 

     Clean sheeting

18

 

     Example

18

 

     NAIC Appendix B Consumer Refusal to Provide Information

19

 

#6 “I’ll only put this premium payment in my account for a couple days. I’ll send it to the company before anyone even thinks about it.”

20

 

     Example

20

 

#7 “I don’t have time to return this call. It’s probably not important anyway.”

21

 

#8 “I know I was supposed to see this client personally, but it too far to drive.”

21

 

#9 “Damn, I forgot to get this signature. Oh well, I can copy it and no one will know.”

22

 

      Example

22

 

#10 “What a lousy morning. To hell with the rest of these appointments.”

23

 

Commissioned Sales Requires Perspective

23

 

  Negative mindset

25

 

   Sympathy & Empathy

27

 

  Presentations need to be respectful

28

 

  Understand the Why

29

 

    Example

29

Chapter 4: Business & Ethics Need Each Other                              

31

 

Decisions at every level

31

 

  Ethical Dilemma

34

 

Chart

35

 

Develop Product Knowledge

36

Chapter 5: Making Ethical Decisions

37

 

Determining Facts Verses Fiction

37

 

Determining Ethical Decisions

37

 

    Laws are designed to mandate behavior

38

 

  How does one make ethical decisions?

42

 

An Ethical Foundation

43

 

Persistence

43

 

Positive Attitude

44

 

Continual Effort

45

 

  Example

45

 

Ability to Face the Uncertain

47

 

Competitive Spirit

47

 

Acceptance of Occasional Adversity

47

 

NAIC Appendix C Consumer Decision to Buy Not Based on

48

 

What can a person do to personally make insurance an ethical occupation?

49

Chapter 6: Ethical Marketing

50

 

    Requirements of Different States CA Article 6.3

50

 

Responsibilities in Marketing Strategies 1-4

50

 

  Honesty & Professionalism

51

 

  Value of the Insurance Product

51

 

  Reasons why an agent sells an inappropriate policy

52

 

Planning Financial Strategies

52

 

  Two Elements in Ethical Marketing

54

 

   State Requirements Regarding Advertising

55

 

Door Approaches

56

 

  Example from Texas Sec. 541.059

56

 

Referral Business

57

 

  NAIC Appendix A Disclosure

58

Chapter 7: Ethical Selling

61

 

Education

62

 

Common Feedback (aka Complaints)

63

 

Getting Education in a Timely Manner

64

 

  Example

65

 

Laying out Policy Benefits & Limitations

67

 

    Full Disclosure

68

 

    Slow to Replace Existing Contracts

68

 

    Worker’s Compensation

68

 

    Health Questions (clean sheeting)

68

 

    Eligibility of Applicants

69

 

    Continuity must be considered

69

 

Policy Replacement

69

 

  NAIC Model Law Section 6. Duties of Insurers and Producers

70

 

When the Agent Allows Misconceptions

71

 

When Premiums seem too High

72

 

Obtaining Proper Signatures from the Client

73

 

    Example

73

 

Keeping in Touch after the Sale

74

 

Selling the “Fast Buck” Items

74

 

Competency

75

 

  Financial Due Diligence

76

 

United Insurance Educators, Inc.

8213 - 352nd Street East

Eatonville, WA.  98328-8638

(253) 846-1155

(800) 735-1155

 

Email:  mail@uiece.com