Another Question Of Ethics: Understated Payroll

While preparing a proposal for a potential client, you notice that payroll has been consistently understated by the insured in both applications and self-audits.

You represent the insurer involved, but you are not seeking a quote from that insurer because of an Agent of Record letter.

National Underwriter’s ethics columnist Peter R. Kensicki’s asks: What are your ethical duties to the current insurer, the proposed insurer and the client for whom you are seeking a quote?

Respond here by posting a comment and identifying your role in the insurance business—agent, adjuster, risk manager, etc.

Alternatively, you may forward your responses to Dr. Kensicki at peter.kensicki@att.net or via regular mail to his attention at 105 Bittersweet Drive, Richmond, KY 40475-3101. Please include your role in the insurance business—agent, adjuster, risk manager. Identities of respondents will remain confidential.

A column recapping all responses received by Jan. 20, 2011 will appear in the Mar. 14, 2011 edition of National Underwriter magazine.

Peter R. Kensicki is a professor of insurance at Eastern Kentucky University in Richmond, Ky., as well as a member of the Ethics Committee of the CPCU Society in Malvern, Pa.

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