Required Life & Health Ethics

Table of Contents

Defining Ethics	1
Formal Code of Ethics	1
Philosophically Speaking	1
Insurance Ethics	2
Suitability	3
Conflicts of Interest	3
Prioritizing the Needs of the Client	3
Canadian Council of Insurance Regulators (CCIR)	3
Face-to-Face Presentations	4
Adequate Communication Skills	4
Internet Shopping	4
Insurance Elements	5
Obligations and Morality	6
Legal Issues	7
Mandated Ethics	9
Principles versus Rules	11
The Covenant or Promise of Good Faith	11
Product Suitability	12
Insurance Suitability Worksheet	12
Recognizing Investment Risk	14
Identifying Suitability Issues	18
Recognizing and Addressing a Conflict of Interest	18
IPRC Examines Conflicts of Interest	19
Disclosing Potential Conflicts	20
Placing the Client’s Interests First	21
CCIR Considers Issues in the U.S.	22
January 2015 “The Approach”	23
Principle and Supporting Elements	26
Disclosure	27
Expectations	27
Fact Finding	28
Needs Assessment and the Resulting Recommendations	28
Product Information	31
Complaints	31
Collecting Information	32
Advocis	32
Agent Responsibilities and Sales Practices	33
The Role of Agents and Brokers	34
Appropriate Communication and Product Selection	35
Insurance Applications	35
Product Replacement	36
Education must be a Priority	37
Holding the Client’s Needs above those of the Agent	37
Full Disclosure	38
Product Knowledge	38
Practical Ethics	38
Establishing Insurance Ethics	39
Linking Risk Management and Ethics	42
Adequate Underwriting is an Ethical Duty	43
Due Diligence	44
Insurance Dilemma	46
Confidentiality	47
Simultaneous Representation	48
Common Sense	48
Promoting Ethical Conduct	48
Presenting Insurance Benefits	49
The Ethical Path	50
Ethical Perceptions	50
Integrity	51
Objectivity	51
Competence	52
Fairness	53
Confidentiality	53
Professionalism	54
Diligence	54
Express and Ostensible Authority	54
Ethics and Risk Control	55
Agent Liability	56
Company Insolvencies	56
Third Party Liability	56
Hidden Costs of Litigation	56
Documenting Procedures for Self-Protection	56
Honesty – A Moral and Legal Obligation	57
A Personal Choice	58
The Exceptional Man	59
Taking the Moral Path	59
Developing a Work Ethic	60
Acting in the Best Interest of the Majority	61
Listening Our Way to Success	61
Fulfilling Our Obligation to the Client	62
Duty to Represent Insurers Fairly	63
Acknowledging Our Moral Obligations	63
Is It Too Good To Be True?	64

United Insurance Educators, Inc.

PO BOX 1030

Eatonville, WA  98328

(253) 846-1155