Ethics in Insurance

Table of Contents

Chapter 1 - Definitions in The Real World	1
eth'ics (eth'iks) n. pl.	1
What are ethics?	1
Example #1	3
Example #2	5
Example #3	6
Example #4	6
Why Be Ethical?	7
Four Basic Questions	7
Question 1 – Is it possible to teach ethical behavior?	9
Egoism versus egotism	10
Question 2 – What is the scope of ethics?	11
Question 3 – What does it take to be a moral person?	13
Question 4 – What kind of work do you want to do?	14
What do I want my legacy to be?	14
Example #1	16
Example #2	16
Example #3	17
Example #4	18
What are our responsibilities to other moral persons?	19
Ethics in Action	20
Objectivist Ethics	21
What does Ethics in Action Mean?	21
Example	22
Example	26
Howard Fischer Associates - character traits	27
Perception of Ethics	31
Sympathy & Empathy	32
Examples	33
Looking the Part	36
Courtesy	37
When View Differ	42
Variability of moral valuation	43
Rationalizing	45
Example	45
Understanding	47
Mores	48
Example	48
Behavior	49
Mandate / Customs	49
Morally Correct	50
When you Really Want to be Somebody	50
pro bono	52
Considering if an agency is right for you	53
Ethics in Selling	55
Setting Appointments	55
Getting in the Door	56
Example	57
Laying out Policy Benefits and Limitations	58
Steps to minimize misunderstandings	59
Policy Replacement	60
When the Agent Allows Misconceptions	62
When the Premium Seem Too High	62
Obtaining Proper Signatures from the Client	63
Keeping in Touch After the Sale	63
Example	63
Selling the “Fast Buck” Items	66
Commingling Funds	67
Example	67
Getting Education in a Timely Manner	68
Example	69
Chapter 2 - Ethical Investing - Is It Possible?	71
SRI	72
ESG	72
Investment Avoidance Approach	74
Investing from a Positive Approach	75
National Council of Churches	76
Investing from the Activist Approach	77
Gadflies	77
Where does an Individual Begin?	78
Capital Gains & Income	79
Know Thyself	80
Example	80
Investment Portfolios and Insurance Products	81
Can you Objectively Appraise Yourself?	82
Finding the Right Professional	86
Brokers	87
Who or What is Ethical?	88
Finding Out What You Need to Know	90
prospectus	92
Looking for Promising Small Companies	92
Which Small Company is Worthwhile?	94
Living for Today as well as for Tomorrow	96
Fixed & Variable Income	96
Are Tax Dollars Ethical for the Individual	98
Tax Shelters and the Ethical Investor	99
Types of Tax Shelters	100
TSA	100
What are the Benefits of Contributing to a Tax Sheltered Annuity?	101
Tax Shelters in Canada	102
Can the Ethical Investor Not Consider Retirement Planning?	102
Rules for Retirement Planning	103
In Closing	104
Chapter 3 - Ethical Insurance	105
Example	106
Replacement Selling	107
Selecting Ethical Insurance Companies	107
Shareholders & the Proxy Vote	109
Proxy means ...	110
Chapter 4 - Agent Due Diligence	112
Limitations to the Technical Approach	112
Negative cash flow	114
Example	115
Written Code of Ethics in the Company Manual	118
Long Term Benefits	119
Due Diligence:  A Matter of Ethics	121
What does the term, due diligence, actually mean?	122
Financial Strength of an Insurer	123
Example	123
Insurer Solvency	127
A.M. Best	127
Quantitative Evaluation from A.M. Best	128
Qualitative Evaluation by A.M. Best	130
Understanding the Rating System	130
Rating Modifiers	132
In Summary	132
Insurance Fraud	133
Premium Diversion	133
Example #1	133
Example #2	134
Example #3	134
Fee Churning	135
Asset Diversion	135
Types of Fraud	135
Insurance Company Fraud	136
Chapter 5 - Determining Who We Are	137
Universal Moral Law / categorical imperative	138
All Moral Traditions Examine Same Basic Questions	139
If it’s Legal, it Must Be Moral!	140
Moral certainty	142
Commitment to Acting Ethically	143
Chapter 6 – Diversity, Inclusion and Anti-Bias	146
Critical Race Theory	147
Redlining	148
Reverse Redling	149
Issues Raised	150
Blackballing	151
Rebating	152
Unfair Travel Discrimination	152
“A” through “D” Countries	156
Reducing Bias in Business	159
Implicit Bias Verses Explicit Bias	159
Effects of Bias in the Workplace	160
Implicit Bias	160
Affinity Bias	160
Halo Effect Bias	160
Perception Bias	161
Confirmation Bias	161
Group Think Bias	161
Explicit Bias	161
Institutionalized Bias	162
Even AI Can Promote Bias	162
Micro segmentation	163
In Closing	163

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