Can be defined as a system or set of moral principles or practice - Ethics
7 Factors that can influence an individual's ethics are: -
- Friends
-
... [Show More] Family
- Society
- Media
- Belief Systems
- Educational Institution
- Legal Restraints
3 Benefits of being ethical –
1. Public Trust / Confidence Gained
2. Government Regulation Avoided
3. Enhanced Credibility Earned
Examples of Government Regulation –
- Limitations on how credit scoring is used in UW
- Trust account fiduciary rules
- Unfair trade practices acts
6 steps to Ethical Decisions making –
1. Define the problem
2. Seek out Resources
3. Brainstorm a list of Potential Solutions
4. Evaluate those Alternatives
5. Make your decision & Implement
6. Evaluate the decision
_____ is behaving in accordance w/ the legal system - following laws, rules, &
policies - Legal Compliance
Legal duties are based on 3 criteria: -
1. Peer Standards
- Requires a person's duties be performed in a manner similar to others in the same
position2. Oral & Written Agreements (Contracts)
3. Statutes
Are written laws open to little interpretation - Statutes
- ex of following a writing insurance statue is when the laws protect consumers
from unfair trade practices
Actual or Expressed Authority - is expressly given to the agency by the insurance
company as found in the agency contract.
- When used the insurance company is generally responsible to pay for losses
-Written authority allows the agent to countersign, issue & deliver policies
Implied Authority - The authority of the agent is not specifically expressed (not in
writing), but is still consistent with the agent fully exercising expressed authority
granted by the company
- Contact may not address the agency to use the company logo. but due to implied
authority, it is implied the agency has permission to do so
Apparent Authority - Authority the agent appears to have based on circumstances
surrounding that belief. MISLEADING and cause the customer to believe authority
exists when it does not
- Agent giving a quote who does not have the actual authority
Estoppel - The insurance company is "stopped" from denying the agent's authority
when it has allows the same activity in the past without taking any corrective
actions
- An agency previously exceeded its binding authority serval times, but the
insurance company always issued the policies without notifying the agents. Now a
loss occurs on a new policy, the insurance comp tries to deny but cannot because
the agent used implied authority, for no corrective action has ever been taken in the
past. Insurance comp is estopped from denying that agency's authority
No Authority - If an agency does NOT represent a company (no agreement in
place) there is no authority granted, implied, or apparent
Care Owed to the Insurance Company - 1. Loyalty2. Good Faith
3. Reasonable Care
4. Contractual Duties
Care Owed to the Customer - 1. Adequate Coverage
- determine the appropriate amount of insurance
2. Proper Coverage
- Understand differences in coverage among what is available
3. Coverage Place in the Best Interest of the Customer
4. Prompt Communication
5. Coverage Place w/ a Financially Sound Insurance Comp
Values Statement - Defines the heart of the organization; "What do we stand for?"
Vision Statement - Specifies what are the current & future goals of the agency
Mission Statement - Action-based statement declares what the agency actually
does & how they intend to connect with & serve their customers. Reveals what
makes the agency unique
SMART goal - S - Is your objective SPECIFIC
M - Can you MEASURE progress towards goal
A - is the goal realistically ATTAINABLE
R - How RELEVANT is the goal to your organization
T - What is the TIME for achieving this goal?
A specific goal answers these questions: - 1. What is the objective that needs to be
accomplished?
2. Who is/are the people responsible for it?
3. What steps will be taken to achieve it
Goals do not last forever and should have a - Deadline
Identifying the agency's ________ & projecting the desired image will be key in
attracting & retaining customers - Brand [Show Less]