Ethics 4-Hour Training Course - Sandi Kruise …

1 Ethics 4-Hour Training Course Sandi Kruise Insurance Training (a division of Sandi Kruise Inc). 1-800-517-7500. 2010-2015 Sandi Kruise Insurance Training , Sandi Kruise Inc, All rights reserved. 1. TABLE OF CONTENTS. 8. How Ethics is Learned .. 9. Ethics AND SUCCESS .. 10. HOW W E DEFINE SUCCESS .. 10. LONG TERM VS. SHORT TERM .. 10. BELIEFS .. 11. HONESTY .. 11. Rationalization .. 12. Ethics IN MODERN SOCIETY ..12. THE INDIVIDUAL AND SOCIETY .. 12. Religion & Ethics .. 13. Laws Versus Ethics .. 13. Ethics IS HARD W ORK .. 13. ETHICAL DECISION MAKING ..14. Ethical Sales Decisions .. 15. A PERSONAL CODE OF STANDARDS OF ETHICAL BEHAVIOR ..16. CORE ETHICAL VALUES .. 16. RESPONSIBILITY .. 16. INTEGRITY .. 16. CARING .. 17. SELFLESSNESS .. 17. 17. EXCELLENCE .. 18. THE GOLDEN VS. THE PLATINUM RULE .. 18.

2 PROFESSIONALISM ..18. PRIMARY CHARACTERISTICS OF A PROFESSION .. 18. THE HALLMARKS OF PROFESSIONALS INCLUDE: .. 19. A Carefully Conceived Code of Personal Ethics .. 19. Altruistic Attitude and Behavior .. 19. MANDATORY LICENSING AND EDUCATION Training .. 20. REQUIREMENTS OF PROFESSIONAL SKILL AND COMPETENCE .. 20. Continuing Education (CE).. 21. FORMAL ASSOCIATION OR SOCIETY .. 22. ABILITY TO ACT WITH INTEGRITY AND OBJECTIVITY .. 23. PUBLIC RECOGNITION AS A PROFESSION .. 23. SEEKING OTHER PROFESSIONAL RESOURCES .. 23. Unauthorized Practice of Law .. 24. Fairness .. 25. The Value and Price of Being a Professional .. 25. PROFESSIONAL CODES OF Ethics ..25. 2010-2015 Sandi Kruise Insurance Training , Sandi Kruise Inc, All rights reserved. 2. Ethics AND THE INSURANCE INDUSTRY ..27. PUBLIC EXPECTATIONS AND THE INSURANCE INDUSTRY.

3 28. NEGATIVE PERCEPTION OF THE INSURANCE INDUSTRY .. 28. INSURANCE IS AN ESSENTIAL PRODUCT A NECESSITY .. 29. TRUST .. 30. Ethics FOR INSURANCE PRODUCERS ..32. TYPES OF INSURANCE PRODUCERS .. 32. LINE OF INSURANCE .. 32. Life and Health (L&H).. 32. Property and Casualty (P&C) .. 32. FUNCTION & AUTHORITY .. 32. AGENTS VS. BROKERS .. 32. Insurance agent .. 32. Insurance broker .. 33. Insurance solicitor .. 33. Insurance Consultant or Analyst .. 33. EXCESS OR SURPLUS LINES BROKERS (E & S BOKERS) .. 34. General Agents and Managing General Agents .. 34. AGENCY RELATIONSHIP .. 34. EXCLUSIVE VS. MULTIPLE-COMPANY REPRESENTATION .. 34. EXCLUSIVE OR CAPTIVE AGENTS .. 35. INDEPENDENT 35. DIRECT W RITERS .. 36. AGENCY LAW PRINCIPLES -- THE CONCEPT OF AGENCY ..36. THE THREE TYPES OF AGENCY ..36. AGENCY BY APPOINTMENT.

4 37. AGENCY BY ESTOPPEL .. 37. AGENCY BY RATIFICATION .. 37. AUTHORITY OF AN AGENT ..37. EXPRESS 38. IMPLIED AUTHORITY .. 38. APPARENT 38. LIMITATIONS ON AUTHORITY .. 38. SELECTING INSURANCE COMPANIES TO REPRESENT ..39. DUE DILIGENCE IN 39. FINANCIAL STRUCTURE OF 40. Gathering Company Information .. 41. STATUTORY FINANCIAL REPORTS .. 41. INSURANCE COMPANY RATING SERVICES .. 41. GUARANTY ASSOCIATIONS .. 42. UNAUTHORIZED INSURERS .. 43. COMMISSIONS .. 43. CAPITAL & SURPLUS .. 45. INVESTMENT OF ASSETS .. 45. INSURANCE INDUSTRY REGULATION ..45. THE HISTORY OF INSURANCE REGULATION .. 46. 2010-2015 Sandi Kruise Insurance Training , Sandi Kruise Inc, All rights reserved. 3. THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (NAIC) .. 46. NAIC Model Laws .. 46. STATE AND FEDERAL LAWS GOVERNING 47. LAWS REGULATING AGENT ACTIVITIES.

5 48. LICENSING OF 48. Eligibility for License .. 49. APPLICATION FOR LICENSE .. 49. CONTINUATION/EXPIRATION/RENEWAL OF 50. TERMINATION OF APPOINTMENT .. 51. LICENSE SUSPENSION/TERMINATION .. 51. DISCIPLINARY ACTIONS .. 51. STATE INSURER REGULATION OF POLICY PROVISIONS .. 53. RATES ARE REGULATED BY LAW .. 53. INSURANCE COMMISSIONERS INVESTIGATE .. 54. UNFAIR TRADE PRACTICES ..54. UNFAIR MARKETING PRACTICES .. 55. DECEPTIVE SALES PRACTICES .. 55. USING EUPHEMISMS FOR "AGENT" AND INSURANCE .. 55. Misleading Terms .. 56. SALE OF LIFE INSURANCE AS A RETIREMENT PLAN .. 57. Private Pension .. 57. PREMIUMS .. 58. Vanishing Premiums .. 58. INSURANCE VS. INVESTMENTS .. 58. MISREPRESENTATION .. 59. FALSE OR MISLEADING ADVERTISING ..60. FALSE FINANCIAL REBATES AND INDUCEMENTS ..61. Gifts are Rebates .. 62. Referral Fees.

6 63. LOWBALLING .. 63. BOYCOTT, COERCION, AND INTIMIDATION .. 63. Boycott .. 64. Coercion .. 64. Defamation .. 64. UNFAIR DISCRIMINATION .. 64. REDLINING .. 65. FEE BASED 65. COLLECTING BOTH FEES AND COMMISSIONS .. 66. UNFAIR CLAIMS PRACTICES .. 67. PENALTIES FOR AGENTS .. 69. AGENT INTEGRITY .. 70. REPORTING CHANGES .. 72. Penalties .. 72. A PRODUCER'S DUTIES AND RESPONSIBILITIES ..72. COMMUNICATION .. 73. CONFLICTS OF INTEREST .. 73. THE AGENT AS A FIDUCIARY ..73. 2010-2015 Sandi Kruise Insurance Training , Sandi Kruise Inc, All rights reserved. 4. REASONABLE CARE .. 74. PROVIDE INFORMATION AND FOLLOW -UP .. 75. ACTING AS A 75. ETHICAL SELLING ..75. ETHICAL SALES CONCERNS .. 75. AGENT DUTIES .. 76. AGENT'S RESPONSABILITIES TO THE CLIENT .. 76. Meeting the Client's Needs in a Suitable Way .. 76. Maintaining Proper Coverage.

7 77. Communicating Clear and Specific Information .. 77. The Changing Role of the Sales Professional .. 77. SELLING TO NEEDS .. 77. SUITABILITY .. 78. Service After the Sale .. 79. THE PROFESSIONAL SALES PROCESS .. 79. W ORKING WITH SENIORS OR DISABLED CLIENTS .. 80. How Sales Professionals Represent their Products .. 82. Obtaining Information from Seniors .. 82. KEEPING IN TOUCH AFTER THE SALE .. 85. CONSEQUENCES OF A BREACH OF RESPONSIBILITY TO CLIENTS .. 85. Implementing Plans for Impaired or Disabled Clients .. 85. PROVIDING SERVICE TO CLIENTS ..86. LAPSED OR CANCELLED POLICIES ARE COSTLY .. 87. MARKETING AND ADVERTISING ..87. Sales Tools .. 87. ADVERTISING AND SALES LITERATURE .. 88. Motivation of Prospects and Clients .. 89. Words to 89. Modifying Sales Tools and Methods for Seniors or Impaired Persons.

8 90. COMPLETE AND HONEST PRESENTATION .. 91. DISCLOSURE ..92. STANDARDIZED DISCLOSURE MATERIALS .. 93. DISCLOSURE LETTERS AND DISCLOSURE FORMS .. 93. TELEPHONE 94. ONGOING DISCLOSURE .. 94. SPECIFIC DISCLOSURE ISSUES IN LIFE INSURANCE MARKETING .. 94. ADVERSE TAX CONSEQUENCES .. 94. MODIFIED ENDOWMENT CONTRACTS (MECS) .. 95. USING POLICY LOANS TO CREATE TAX-FREE INCOME .. 95. PENSION MAXIMIZATION .. 95. PROPERTY/CASUALTY INSURANCE .. 96. PRESENTATIONS, ILLUSTRATIONS, AND QUOTES .. 96. ILLUSTRATIONS .. 98. Ethical Issues Surrounding Illustrations .. 99. NAIC MODEL FOR POLICY ILLUSTRATIONS .. 100. ADVICE TO AGENTS .. 101. EXPLAINING POLICY BENEFITS AND LIMITATIONS .. 101. THE AGENT'S RESPONSIBILTIES TO THE INSURANCE COMPANY .. 102. CAREFUL SOLICITATION .. 103. COMMINGLING FUNDS .. 105. 2010-2015 Sandi Kruise Insurance Training , Sandi Kruise Inc, All rights reserved.

9 5. CONSUMER PROTECTION ..105. Ethics & COMPETITION .. 106. PROMOTING ETHICAL BEHAVIOR ..107. The Agency Environment .. 108. Reasons to be Ethical .. 110. GREED & Ethics .. 111. THE INSURERS RESPONSIBILITIES TO POLICYHOLDERS ..111. DUE DILIGENCE IN HIRING 112. STATE REQUIREMENTS FOR BACKGROUND INVESTIGATIONS .. 113. COMPLAINTS AND AGENT CONDUCT .. 113. CANCELLATIONS/NONRENEWALS .. 114. THE INSURER'S RESPONSIBILITIES TO AGENTS ..114. COMPENSATION .. 114. EMPLOYMENT .. 114. INDEMNITY .. 115. CLEAR COMPLIANCE DIRECTIVES .. 115. AGENT SUPPORT AND Training .. 115. FRAUDULENT AND ILLEGAL ACTIVITIES ..116. FRAUDULENT CLAIMS .. 116. AGENTS AND POST CLAIMS UNDERWRITING .. 117. Credit Scoring the Ongoing Controversary .. 117. Failure to Obtain Full and Complete Client 117. FIELD UNDERWRITING .. 118. THE APPLICATION.

10 119. BINDERS AND CONDITIONAL RECEIPTS .. 120. SUBMITTING THE APPLICATION & INITIAL PREMIUM .. 120. Prompt Submittal of Application .. 120. BINDER .. 121. BINDING RECEIPT .. 121. CONDITIONAL RECEIPT .. 121. ALTERING APPLICATIONS .. 122. SIGNING SOMEONE ELSE'S NAME (W INDOWING) .. 122. APPLICATIONS AND FRAUD .. 122. EXPLAINING THE UNDERWRITING PROCESS .. 123. KEEPING THE APPLICANT INFORMED .. 123. RATINGS AND 123. DELIVERING THE POLICY .. 124. Explain the Free Look .. 124. CONTROLLED BUSINESS .. 125. REPORTING MISCONDUCT .. 125. Premium & Rates .. 125. POLICY TWISTING/CHURNING/REPLACEMENT .. 125. CHURNING .. 126. POLICY 127. THE LEGAL ASPECTS OF POLICY REPLACEMENT .. 128. 2010-2015 Sandi Kruise Insurance Training , Sandi Kruise Inc, All rights reserved. 6. Legal Definition .. 129. PROCEDURAL REQUIREMENTS.