1. You are an agent who wishes to sell a $1 million life insurance policy. Your
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Question
1. You are an agent who wishes to sell a $1 million life insurance policy. Your client thinks she can’t afford a policy that large, so to reduce the price you tell her you will give her 50 percent of your commission. Is this legal or ethical?
2. To increase the market share of your business, you throw monthly country-dancing parties, including an open bar, for potential clients. Is this ethical?
3. A couple of years ago you filed a claim for water leakage in your home. Now, during the homeowner’s coverage crisis, your insurer will not renew your policy with the same coverage and the same deductibles. You will have to pay higher premiums, and your deductible is larger. Is it ethical for the insurer to change your coverage so substantially?
4. As the chief financial officer for a large insurance company, you receive a budget request from your ethics officer for $75,000 to be spent on ethics training for your employees. You can think of many other ways to spend this money that would directly increase sales or reduce expenses. With no tangible, bottom-line results, how do you measure whether ethics training is a good investment?
Explanation / Answer
1. You are an agent who wishes to sell a $1 million life insurance policy. Your client thinks she can’t afford a policy that large, so to reduce the price you tell her you will give her 50 percent of your commission. this is legal.this is not corret to do the insurance policy.
2. To increase the market share of your business, you throw monthly country-dancing parties, including an open bar, for potential clients. this is also not a ethical behaviou because for marketing the sales he should not give any parties . he can advertise in other ways like showing the last year profits to the market where you want to raise funds.
3.A couple of years ago you filed a claim for water leakage in your home. Now, during the homeowner’s coverage crisis, your insurer will not renew your policy with the same coverage and the same deductibles. You will have to pay higher premiums, and your deductible is larger. Is it ethical for the insurer to change your coverage so substantially.no this is also not an ethical behavior.
4.yes, ethical training is a good investment on employees .why because by knowing the ethics only they can behave wisely and properly with their customers. then only the reputation of the insurance company will increase.If the company have good will in the market then it will increses the cosumption of policies by the custmers.
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