Melissa knows all the details and facts about the case. It was on the news and everyone is talking about it. Later that evening, while Melissa is hanging out with friends, the accident comes up in conversation. In the course of her duties, she learns that Bob, the insured, was involved in an accident involving a DUI.
Scenario #4: Melissa is the CSR on a very large account.
#Integrity plus auto driver#
Or the CSR could just agree with the mom and leave the new driver wondering exactly how his insurance works. The CSR could take the time to educate the new driver about how insurance works, and how it would apply to a permissive user. He asks, "Will this policy cover my friends if they drive my car?" The CSR knows that there is coverage for a permissive user, but she sees the mother mouthing the word "No." The CSR thinks about telling the new driver that there isn't coverage for anyone but him on the policy to save the mother from worrying about who is driving the car. Scenario #3: A teenager comes into the office with his mother to discuss auto insurance. In the meantime, the insured believes he had coverage once he signed the application. The company then changes the effective date of the policy to 24 to 48 hours after the end of the warning, depending on their guidelines. The CSR issues the policy and sends it to the company. It is only a severe thunderstorm warning, and the CSR does not think the storm will do much damage. No binding restriction came in on the fax machine or through e-mail, so the CSR goes ahead and binds coverage on a new policy. Scenario #2: The automobile insurance underwriting guide states very clearly, "Do not bind new policies with physical damage coverage in the event of severe weather including any watches or warnings." The county is under a severe thunderstorm warning. The CSR may find that the insured's premium will increase or the policy may be canceled after inspection.
Homes are inspected on a regular basis and companies are using GPS to determine the distance of homes from the city limits or nearest fire department. The CSR may be able to issue the policy at the lower rate but, with today's market, underwriters are paying more attention to the details. Although the CSR knows that the company will charge a higher premium for the house if it is seven miles away from the fire department, he or she wants to write the business. The CSR decides to indicate to the company that a house is only four miles from a responding fire department instead of seven. With every customer shopping every policy, keeping accounts on the books is important to agencies. Scenario #1: In order to save an account, a CSR is tempted to overlook a fact that would increase the premium on a policy or cause the policy to be canceled. In addition, although some "edgy" decisions might seem great in the short run, in the long run they could be bad for business or cause the agency to lose clients.įollowing are several examples of the dilemmas that CSRs continually face.
#Integrity plus auto code#
Ayn Rand, Russian-American novelist, said, "Ethics is a code of values which guide our choices and actions and determine the purpose and course of our lives." Unfortunately, the field of ethics can be complicated because what may be legal may not always be ethical, and what we feel is right may not be ethical either.
With all the focus on the agents, some may forget that CSRs face ethical dilemmas every day.Įthics can be defined as a system of moral principles. More than 40 states require their licensed agents to participate in some type of ethics class in order to renew their insurance licenses. Personal integrity plus an office system of ethics makes for consistency and confidence in one's actionsĪhot topic in the insurance industry today is ethics.
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