Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $11.99/month after trial. Cancel anytime.

    Insurance Ethics Training
    Insurance Ethics Training
    Insurance Ethics Training
    Ebook112 pages1 hour

    Insurance Ethics Training

    By Michael Lustig

    5/5

    ()

    Read preview

    About this ebook

    Insurance Ethics Training is a study of ethical practices for insurance agents, examining closely the parties to whom agents owe an ethical responsibility, the law of agency, agent and broker liability, and deceptive trade practices and fair claims handling. This textbook will teach you about the "new focus" on business ethics and give you an understanding of ethical decision making, compare ethic obligations and legal requirements, and help you identify the duties resulting from the law of agency.

    LanguageEnglish
    PublisherMichael Lustig
    Release dateAug 8, 2011
    ISBN9781933891712
    Insurance Ethics Training
    Author

    Michael Lustig

    Michael Lustig is a graduate of the University of San Diego, California and a former Professor at California State University at Pomona and Immaculate Heart College (Los Angeles). He has been a California Real Estate Broker and the Owner and President of Real Estate License Services, a California real estate and insurance licence school, since 1978, offering state-approved license courses in 47 states and the District of Columbia. He is the author of 35 books on real estate and insurance topics.

    Read more from Michael Lustig

    Related to Insurance Ethics Training

    Related ebooks

    Business For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      Millennials, What Will It Take for You to Buy Life Insurance?

      Jul 30, 2021

      Start-ups are going to ridiculous lengths to rebrand an industry in desperate need of some younger customers.

      6 min read

    • Article

      7 Ways to Utilize Your Life Insurance Policy’s Cash Value

      Apr 23, 2021

      Permanent life insurance policies—like universal, variable and whole life—offer more than a death benefit. Some include cash value, which is a pool of money you can use while still alive.  If you’ve had a policy for years, the cash value could be con

      1 min read

    • Article

      After a Fire Loss, Dealing with Your Insurance Company

      Jan 30, 2022

      The proper smoke and carbon monoxide (CO) alarms can mean the difference between having a home to live in – or even having a life to live at all, considering  80% of deaths from home fires that occur between 11 p.m. and 7 a.m. Luckily, “Anna” and “Da

      3 min read

    • Article

      The Ins and Outs of Buying Long-Term Care Insurance

      Mar 9, 2018

      I often suggest long-term care insurance to my clients, and I almost always hear this objection: "It's too expensive." Yes, long-term care insurance is not cheap, but medical insurance and Medicare typically do not cover that particular type of care

      2 min read

    • Article

      Can You Just Walk Away from a Debt-Riddled Business and Start Fresh?

      May 28, 2020

      In the wake of the coronavirus shutdown, many business owners are under immense financial stress caused by the economic impact of a nearly worldwide standstill. Some may be in or at risk of breach or default. Creditors may be jockeying for payment an

      7 min read

    • Article

      Bora Bora or Bust: Annuity Sales Incentives May Taint Structured Settlements for Accident Victims

      Oct 18, 2018

      Imagine being injured in an accident and having to pay for years of medical care with a lump-sum financial settlement. Faced with market uncertainties, even a professional money manager could find it challenging to fund long-term care and therapy wit

      4 min read

    • Article

      Lessons From The ‘Wolves Of Groote Schuur’

      May 15, 2020

      why is it that doctors have not yet earned the title “The Wolves of Groote Schuur”? Is the differentiating element the perception of care? Financial advice seems to be geared towards those that have money; and if you do not, then the profession has l

      3 min read

    • Article

      For Entrepreneurs, Confidence in Your Advisers Is Your Most Important Investment

      Nov 24, 2021

      If your estate includes private equity investments, operating businesses or intellectual property interests, I’d wager that you have asked about client confidentiality during every introductory meeting with a potential adviser. I believe that almost

      4 min read

    • Article

      Fiduciary Rule Struck Down But Plan Sponsors Not Off the Hook

      Apr 23, 2018

      On March 15, 2018, the 5th Circuit Court vacated the entire DOL fiduciary rule. The decision essentially nullifies the rule, which was designed to require financial professionals to put their clients' needs ahead of their own when advising them on re

      4 min read

    • Article

      Many Pennies For Your Thoughts

      Feb 14, 2020

      Many Pennies For Your Thoughts
      5 min read

    • Article

      Got You Covered

      Jun 1, 2017

      Want to safeguard your startup from a long list of business killers? Time to talk insurance

      4 min read

    • Article

      Inside Tips on Handling Coronavirus Business Insurance Claims

      Mar 26, 2020

      When disaster strikes, we first worry about health and safety. Then concerns of financial loss and damage come to mind. Many commercial insurance policies contain clauses that protect a business in the event of a disaster -- including a biological

      4 min read

    • Article

      How to Avoid Being Robbed Blind After You Die

      Jul 16, 2018

      In February 2018, prominent NYC attorney Steven Etkind was arrested on charges of embezzling millions of dollars from a deceased client's estate. The client's will directed the creation of charitable trusts (of which Etkind served as co-trustee), fun

      5 min read

    • Article

      Whistleblowers: What You Need To Know

      Apr 20, 2022

      The term ‘whistleblowing’ often conjures up thoughts of major newsworthy scandal, but in reality, it applies whenever an employee considers there has been serious wrongdoing in or by an organisation. The Protected Disclosures Act 2000 (“the Act”) off

      3 min read

    • Article

      For Your Money, Which is Better: The Algorithm or the Adviser?

      May 29, 2018

      We've seen a massive movement toward convenience and automation in nearly every industry. As consumers move toward the option of ordering products online from sites like Amazon, the retail world has seen a record-breaking number of brick-and-mortar

      4 min read

    • Article

      7 Secrets Financial Advisers Won't Tell You

      Jun 3, 2019

      Your financial adviser is someone you need to trust, and the foundation for that trust is knowledge. You need to know exactly who you're working with, what standards they are held to and how they are making their money. Even if you think your advise

      5 min read

    • Article

      Choosing a Financial Adviser: The Fiduciary Dimension

      Mar 22, 2019

      Even the most experienced investors sometimes reach a point where the challenges of balancing a broad range of financial objectives are too complex or time-consuming. That's where a trusted financial adviser can help. Many people find financial adv

      3 min read

    • Article

      Busting Trust Myths

      Sep 3, 2020

      “Trust busting” is the term often used to describe instances where a court finds in favour of a claimant trying to access trust assets. Here, though, I do not want to talk about “trust busting”. Instead I want to bust some trust myths. There has been

      2 min read

    • Article

      Where Do You Fall Along the Wealth Continuum?

      Dec 4, 2018

      As people progress through their careers, typically, their needs for financial services change as well. This natural evolution occurs for professionals, entrepreneurs and business owners -- as you advance along the wealth continuum, the complexity of

      4 min read

    • Article

      When Businesses Fail or People Can’t Pay Bills, Liability Limits Can Save the Day

      Sep 18, 2020

      Most people would agree that a person who borrows money, contracts for the manufacturing or delivery of goods and services, or enters into agreements that require or encourage substantial investment by other parties should not be allowed to fail to m

      4 min read

    • Article

      Cannabis Investing

      Apr 30, 2022

      Cannabis Investing
      4 min read

    • Article

      What Type of Trust Solution is Best for You?

      Apr 30, 2018

      Over the years, I have recognized that much of the estate planning we do at my firm involves trusts. Trusts are valuable structures that allow you to maximize tax-planning opportunities within your estate plan, spell out specifically how you want to

      3 min read

    • Article

      What You Know About Financial Advisers Is All Wrong

      May 9, 2018

      What comes to mind when you hear the phrase "financial adviser?" If you thought of an older man in an expensive suit who is likely wealthier than you'll ever be and is always talking about what's going to happen in the market next, that's understand

      3 min read

    • Article

      Is Your Adviser Using Fintech To Better Serve You, or a Larger Roster of Clients?

      Apr 14, 2020

      Over the past several years, we've seen breakthroughs in technology change almost every aspect of our lives -- from how we shop, to how we get our news and entertainment, to how we get directions. Even how we ask for a ride. These types of innovatio

      3 min read

    • Article

      Questions for Heidi Franken, Deputy Director of Enforcement, Ontario Securities Commission

      Jan 1, 2018

      You head up the Ontario Securities Commission’s new Office of the Whistleblower. What is its mission? The program is primarily an investor protection policy aimed at serious securities misconduct. This misconduct can be difficult to detect without th

      6 min read

    Related categories

    Reviews for Insurance Ethics Training

    5/5

    1 rating0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

      Book preview

      Insurance Ethics Training - Michael Lustig

      INSURANCE ETHICS TRAINING

      Prepared by Michael Lustig

      Contributing Editor: Denise Iona

      Distributed by:

      Real Estate License Services

      5059 Newport Ave. #209

      San Diego, CA 92107

      Phone Toll-Free 1-800-877-5445

      Smashwords Edition

      © Copyright 2010 - 2006 by Michael Lustig, Real Estate License Services. Copyright registered. All contents protected by laws of copyright. No portion of this book may be reprinted, reproduced, transmitted, stored in a retrieval system or on the Internet, or otherwise utilized in any form or by any means, electronic, mechanical, or otherwise, including photocopying or recording, now existing or hereinafter invented, nor may any part of this book be used for teaching without the prior written consent of Michael Lustig.

      Contents

      CHAPTER ONE: ETHICS FOR THE INSURANCE INDUSTRY

      WHAT IS ETHICS?

      LEGAL VS. ETHICAL RESPONSIBILITIES

      LEGAL RESPONSIBILITIES OF CONDUCT - CONDUCT BEYOND LEGAL MEASURES

      THE NEW FOCUS ON BUSINESS ETHICS

      IN THE INSURANCE BUSINESS - WHO IS RESPONSIBLE?

      ENCOURAGING ETHICS

      AT THE CORPORATE LEVEL - MIDDLE MANAGEMENT - AGENCY LEVEL

      ETHICS CAN BE TAUGHT

      ETHICS MUST TAKE HIGH PRIORITY

      ETHICAL DILEMMAS THAT CHALLENGE

      THE ETHICAL COMMUNITY

      WHERE DOES ETHICAL FITNESS BEGIN?

      CHAPTER TWO: THE LAW OF AGENCY

      INTRODUCTION

      THE COMMON LAW OF AGENCY

      AGENCY LAW AS APPLIED TO THE BUSINESS OF INSURANCE

      TYPES OF AGENCY - AN AGENT’S OBLIGATIONS - THE CREATION OF AGENCY - SOURCE OF AUTHORITY - SCOPE OF AUTHORITY - FIDUCIARY DUTIES OF THE AGENT - BREACHES OF FIDUCIARY DUTY - TERMINATION OF AGENCY - STATUTORY DUTIES OF AN AGENT

      LIABILITY

      PENALTIES

      CHAPTER THREE: AGENT AND BROKER LIABILITY

      INTRODUCTION

      PARTIES TO WHOM DUTIES ARE OWED

      DUTIES OWED TO THE STATE - DUTIES OWED TO THE INSURER - DUTIES OWED TO INSUREDS AND CLAIMANTS - DUTIES OWED TO OTHER PARTIES

      SPECIAL ETHICAL CONSIDERATIONS

      BAD FAITH CLAIMS - SUITABILITY - TRUST FUND HANDLING AND ACCOUNTING - MISREPRESENTATION - THE UNAUTHORIZED PRACTICE OF LAW

      THEORIES OF LIABILITY

      BREACH OF CONTRACT - NEGLIGENCE - FRAUD

      AGENTS AS SPECIALISTS OR EXPERTS

      RESPONSIBILITY DETERMINED BY ACTIVITY, NOT BY TECHNICAL DESIGNATION

      STANDARDS MUST NOT BE COMPROMISED

      THE EVOLUTION OF AGENT LIABILITY

      CHAPTER FOUR: CONSUMER PROTECTION

      INTRODUCTION

      CONSUMER LAW

      THE NEEDS OF INSURANCE CONSUMERS - ENFORCEMENT OF CONSUMER LAW

      DECEPTIVE TRADE PRACTICES

      MISREPRESENTATIONS AND FALSE ADVERTISING OF INSURANCE POLICIES - FALSE INFORMATION AND ADVERTISING GENERALLY - DEFAMATION - BOYCOTT, COERCION, OR INTIMIDATION - FALSE STATEMENTS AND ENTRIES - STOCK OPERATIONS AND ADVISORY BOARD CONTRACTS - UNFAIR DISCRIMINATION - UNLAWFUL REBATES

      UNFAIR CLAIMS SETTLEMENT PRACTICES

      UNFAIR CLAIMS SETTLEMENT PRACTICES PROHIBITED - UNFAIR CLAIMS PRACTICES DEFINED - MISREPRESENTATION OF POLICY PROVISIONS - FAILURE TO ACKNOWLEDGE PERTINENT COMMUNICATIONS - STANDARDS FOR PROMPT INVESTIGATION OF CLAIMS - STANDARDS FOR PROMPT, FAIR AND EQUITABLE SETTLEMENTS APPLICABLE TO ALL INSURERS

      CHAPTER QUIZZES

      CHAPTER ONE – ETHICS FOR THE INSURANCE INDUSTRY

      CHAPTER TWO – THE LAW OF AGENCY

      CHAPTER THREE – AGENT AND BROKER LIABILITY

      CHAPTER FOUR – CONSUMER PROTECTION

      CHAPTER ONE: ETHICS FOR THE INSURANCE INDUSTRY

      WHAT IS ETHICS?

      For each of us the word ethics probably holds a different meaning. For those engaged in business enterprises of whatever nature, in its deepest, broadest, and most idealistic sense, ethics should hopefully refer to the Golden Rule, or the ethic of reciprocity. This is an ethical principle stating that a person has the right to just treatment and the responsibility to ensure justice for others. This is the ethical basis for virtually all moral systems in the world. If only we would all heed this simple lesson. By exercising the Golden Rule standard in business relationships, individuals then would not need to impose their own sometimes faulty personal values or preferences on others.

      There is wide public interest in how insurance practitioners conduct their businesses. If the individual ethical performances of agents and brokers become deficient, more government regulations are likely. Such additional government regulation need not materialize if each industry professional makes proper ethical decisions for his or her own business enterprise, recognizing that the best interests of the citizens in the community should be served before his or her own.

      Ethics is a system of moral principles, rules, and standards of conduct which define the duties owed by a member of a profession to the public, clients, and other members of his profession. Professional codes of ethics, as a means of establishing ethical standards, maintain a standard of behavior for members of a particular profession and provide an assurance to the public that such professionals possess the qualities of integrity and fairness essential to honest business dealings. The underlying purpose of codes of ethics, whether professional or personal, is to avoid unethical conduct which occurs when one takes advantage of a position of trust solely for his or her own gain and to the detriment of another person.

      Insurance professionals should always strive to act in an ethical manner. The public deserves it. In the scope of daily business dealings, however, certain situations may present themselves which encourage unethical behavior, or at least which require carefully examining choices of action. It is critical that producers recognize actions that are considered unethical, and these must be avoided.

      Choosing the right insurance professional may be one of the most important financial decisions a person makes. A professional with high standards of ethical fitness can focus on specific concerns, can provide guidance over a lifetime, and will play a significant role

      Enjoying the preview?
      Page 1 of 1