Insurance Pros Need An Ethical Compass

Who else matters?

What is my problem?

What is the ethical concern?

What do others think?

Am I being true to myself?

The six questions posed help guide the professional who is wary about a situation to make an ethical and responsible decision. Question one alone"Why is this bothering me?"–might clear up the matter. It may well be that the ethical and proper decision is known, but some form of temptation is subtly pulling the professional in another direction.

If so, he or she should summon the personal courage necessary to make the correct decision. If, however, the ethical decision is not obvious and concern and uncertainty exist, the remaining five questions will help.

The second question–"Who else matters?"–asks the ethical professional to consider all others who would be affected by the decision. Professionals owe ethical duties to many, but not all others. Answers to this question help direct attention only to those with an interest in the outcome of the decision.

"What is my problem?" A professional knows his or her limitations. If the problem is outside either the individuals responsibilities or area of expertise, it really is no problem. It is a situation that must be handled by someone else and should be referred to that proper person.

If the problem is within the individuals area of responsibilities or expertise, the professional should know that the clients interests are always to be placed before personal interests. Therefore, if a client is involved in the ethical dilemma, this question allows professionals to consider only alternatives that are in the best interests of the client.

If the professional is an agent (in the legal sense), an employee or a regulator, it directs the professional to alternatives in the best interests of those being served. Professionals must not only act within their abilities, but also keep their ethical promises.

If the problem is one that should be addressed by the professional, the next question is: "What is the ethical concern?" All may invoke the Golden Rule as a minimum answer to this question (every major religion in the world has some variation on "Do unto others as you would have them do unto you").

Most insurance professionals have some professional credential, such as CPCU or ChFC. The holders of those designations are subject to canons and rules within their codes of ethics. These professionals, and those aspiring to the designations, may refer to the appropriate code of ethics to see if the particular problem at hand is treated by the code.

Employees may similarly refer to company policies and procedures for assistance. Further, there may well be some law or other type of governmental regulation that applies to the issue. The purpose of the question is to focus on the ethical issues in the problem at hand.

Once the ethical issues are properly framed, if the ethical answer is not obvious, the fifth question the professional may ask is: "What do others think?" Professionals are not placed in an "ethical isolation chamber." Ethical issues should be discussed publicly. This helps not only to direct the professionals attention to ethics, but also helps others to realize the importance of ethics in the insurance business.

We should be proud to show others–particularly our clients–that we have, as a part of our normal thought process, concerns about the ethics of our actions.

Important in this fifth question is the need to respect disagreement. In an ethical matter it is possible, and indeed likely, that others will not share our opinion. This column has shown that professionals sometimes disagree as to details in ethical situations. Both sides on previous issues discussed here have shown thoughtful and respectful consideration and disagreement.

In addition, a criterion of professionalism is continuing education. While many think of continuing education in a classroom sense, it needs to be recognized that the classroom of the real world contains the greatest teachers. Open discussions with others not only expand understanding of ethics, but also the understandings of how ethical principles are applied by others.

In the final analysis, we must each make the final decision as to our actions. The first five questions are analytical in nature and make inquiries that require facts, thought and logic. As Mike Rion, author of the questions, points out, the first five questions involve using your head. Question six addresses an internal emotional response. (Thomas Jefferson wrote about such a personal struggle in his letter "Dialogue Between My Heart and My Head.")

We strive to make the "right" decision. We strive to answer the sixth and final question with a resounding YES: "Am I being true to myself?" Is this ethical decision within my own personal values and will I maintain my personal integrity?

In conclusion, Mike Rion writes: "When you balance all these considerations, youll make a responsible decision." The responsible decision will be an ethical one.

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.

The Next

Agents and brokers are continually sued after uncovered losses when the insured blames the producer. Eliminating the special situations where producers make extra commitments, what are the ethical responsibilities of a professional producer to the client in the procurement of insurance? How can these responsibilities be communicated to the client?

Please forward your responses to Dr. Peter R. Kensicki at ethics@eku.edu or Eastern Kentucky University, 107 Miller Hall, Richmond, Ky. 40475-3101. All responses will be kept confidential. The next column on "A Question Of Ethics" is scheduled to appear here on Jan. 19, 2004.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, November 14, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.