Flashcards
Canadian Ethics Course for Life Insurance Agents
Flashcards do conjunto (16)
- 1What is AGENCY?a licensed corporation or partnership, or an individual sole proprietor agent, that meets the
nominee requirements set out in the Council Rules. - 2What is CLIENT?a person who may reasonably be expected to rely on a licensee’s advice or actions with regard to
insurance. - 3What is LICENSEE?a licensed insurance salesperson, agent, or adjuster.
- 4What is PERSON?includes a corporation, partnership, society, association, or other organization or legal entity.
- 5What is PRINCIPAL?a person on whose behalf a licensee has undertaken to perform adjusting services
- 6What is TRANSACTION?a situation in which a licensee provides an insurance product or service to any person
- 7What are the 5 overlying principles of ethical practice for an advisor?CODIC:
Competence
Objectivity
Disclosure
Integrity
Confidentiality - 8CompetenceAdvisors must:
• Conduct all insurance activities in a competent manner. They must apply their knowledge and
skill in a manner consistent with the usual practice of the business of insurance in the
circumstances;
• Be diligent and financially reliable; meaning they can be relied upon to properly safeguard and
account for money and property entrusted to them, and to promptly deliver them in accordance
with the circumstances;
• Be aware that conduct outside their professional life, such as outstanding judgments, pending
legal proceedings, and bankruptcies, may reflect on their financial reliability;
• Adhere to the continuing education requirements;
• Follow the anti-money laundering procedures when completing insurance business; and
• Refrain from giving advice in areas beyond their expertise as an insurance licensee. - 9ObjectivityAdvisors must:
• Be objective, honest and sincere when advising clients on services and products;
• Complete an analysis of the client’s needs and the product’s suitability for their situation;
• Act in a manner consistent with the client’s or principal’s best interests;
• Remain faithful to their duties and obligations as an insurance licensee;
• Provide a duty of good faith to insurers, insureds, fellow licensees, regulatory bodies, and the
public. - 10DisclosureAdvisors must:
● Inform clients on all aspects of the insurance products they purchase, including any changes that
occur during the terms of the policies;
● Ensure illustrations include prices, values and benefits clearly and fairly, with disclosure of
amounts that are not guaranteed;
● Make full and fair disclosure of all material facts, to enable clients to make informed decisions
regarding their insurance;
● Disclose any fees charged in addition to the policy premium.
● Use sales materials or illustrations that are clear and straightforward to avoid misleading or
deceiving clients;
● Not use terms such as “guaranteed” without appropriate qualification or evidence to support the
statement;
● Inform the client of arrangements to place the client’s insurance through another agent;
● Fully and accurately disclose any information material to the insurer’s decision to issue a contract
of insurance; and
● Inform the insurer when placing insurance on behalf of another agent who is acting for the
insured. - 11IntegrityAdvisors must:
• Be trustworthy and conduct all professional activities with reliability and honesty;
o Behaviour outside the professional context can reflect on trustworthiness and call into
question one’s suitability to hold an insurance licence.
• Engage in fair competition so clients can access the products and services they need at
reasonable prices;
• Deal effectively with client concerns and objectives; and
Never discriminate based on a client’s age, gender, marital status, ethnic origin, physical or mental
ability, religion, sexual orientation or socioeconomic status. - 12ConfidentialityAdvisors must:
• Hold in strict confidence all information acquired in the course of the professional relationship
concerning the personal and business affairs of a client; and
• Never divulge or use such information other than for the purpose of a transaction or of a similar,
subsequent transaction with the same client, unless expressly authorised, or as required by law. - 13Steps to Ethical Decision-Making?1. Identify the Issue
2. Gather the Facts
3. Determine the Options and Evaluate
4. Test Options
5. Choose the Best Option and Review - 145 approaches to evaluation and decision making1. Utilitarian Approach
2. Rights Approach
3. Fairness or Justice Approach
4. Common Good Approach
5. Virtue Approach. - 15The Three Test options?1. The Smell Test
2. The Front Page Test
3. The Mom Test - 16—
Informações
- Descrição
- Canadian Ethics Course for Life Insurance Agents
- Criado por
- Sandy Oklen · dez 2023
- Atualizado
- 19 dez 2023
- Visualizações
- 351
- Tags
- Avaliação