How to Improve Insurance Industry Ethics

April 8, 2015

  • April 8, 2015 at 1:52 pm
    Mickey Dee says:
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    It’s the almighty dollar that drives most of the decisions to be ethical or unethical. You can put the ethically correct words in your core values. You can preach ethics to your staff. However, if the owners are not practicing what they preach, it will never happen. The staff notices things as they do the majority of the work. They know what’s going on!

  • April 8, 2015 at 3:14 pm
    FFA says:
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    Here is how… Keep the politicians out!

  • April 10, 2015 at 8:48 am
    "2honest" says:
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    My work life was made a living hell for years after I “took the high road” when asked to market a certain piece of new business. Some people just try to see how much they can get away with, maybe not actually providing false information about a particular risk, just withholding negative information in hopes it will never be discovered.

  • April 10, 2015 at 2:40 pm
    Broker says:
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    It can be very difficult when you’re working in the best interests of the client, but its conflicts with their own short-term goals.
    We are often confronted with a cheap quote of watered down coverage. Whether we present it or not, we are tasked with explaining to a client and laying out all of the information in order for them to make the most educated business decision. The dilemma is often the decision as to if we get that bottom dollar quote because we know it’s out there? Is it unethical to not present my client a cheaper option I know may exist (even though I haven’t approached that market)? Clearly it’s in appropriate to have secured a quotation and not have shared it with my client unless some unique circumstances exist. Do I have a higher ethical position by not representing that quote to my client because we don’t stand by that market and their product? I risk losing the business more if I don’t have the quote; so is it unethical to go get the quote in hopes of saving the business and doing the clients wishes? What about when a cheaper quote rolls in at the 11th hour after the client has already renewed?
    What about when the shoe is on the other foot and we’re competing with the incumbent and all we have is cheap price? Should we concede their incumbent program is the best option and ask for a BOR even though we couldn’t come to the table with a better product aside from price alone?
    I will tell you in practice insureds often know they’re likely buying an inferior product, and in the event rubber meets the road, they feel it’s an us (broker) problem, not theirs. Their feeling is, we sold it to them, so we need to stand by it all costs and advocate for them – which we do.
    As brokers, I’ve always felt our job goes well beyond price, but for many clients it’s just about the almighty dollar because they perceive insurance as pure commodity. I try to remember ethics and morals are not the same. We have a ethical obligation to the public as a whole even though we may be morally opposed to it. Ethics is the first mile and our legal obligation is the second mile.

    • April 13, 2015 at 10:19 am
      Mickey Dee says:
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      Broker, when you sell on price, you lose on price. You are not making a client; you’re renting a customer!
      We present all the options to our clients and try to educate them on their best option. Coverage and price play into the equation. We explain it all and let them choose, and then follow up in writing if there are shortfalls in their decision. They can’t blame us this way. (They can, but we remind them that they were warned).

      • April 13, 2015 at 12:34 pm
        broker says:
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        Sure we warn them, and then what. Say I told you so? Try telling a client I hope you learned your lesson, they’ll be signing a BOR before you can hangup the phone or walk out of their office. The easiest way to avoid all of this is to not work with insured who are price driven. Unfortunately, their aren’t enough of those to go around.

  • April 15, 2015 at 8:04 am
    agent14 says:
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    To improve ethics, how about forcing the companies to behave ethically first? I find it ironic that as an agent, we have to take continuing education every two years, and this includes an ethics course. Yet, insurance companies are forcing agents to write only home / auto packaged business in states where it is illegal for a company to force a customer to buy auto in order to obtain a home policy.

  • March 8, 2016 at 4:09 pm
    Encarnacion Gonzalez says:
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    On Dec.23,2015,a driver side swiped my pick up truck with his pick up truck,and the other driver was clearly at fault.neither one of us were physically injured,but i was some what dazed.Not wanting to impede traffic,we agreed to move the vehicles off the road,but neither one of us took photos of the final resting place of the vehicles to show who was at fault,which is something i truly regret now and being too trusting of the other driver!
    I could easily tell the other driver was either drunk or near diabetic shock cause all he kept mumbling was where am,what happened ?? While waiting for the officer to arrive,the other driver kept climbing into the back seat of his pick up and eating and drinking some kind of liquid.
    The officer who showed up said he couldnt write a report cause we had already moved the vehicle off the road.I asked the officer,(Rockport,TX.) to do breath-alyzer tests on both of us,but he said they dont carry those kinds of kits in their units.I asked the officer to do a sobriety test on the other driver,but he said he didnt smell alcohol on the other driver so he refused.
    To make a long story short,i found a reluctant witness the next day to corroborate that the other driver was at fault,but said he would give his account of what happened only once cause he really did not want to get involved.
    Well,i made another BIG mistake by having my reluctant witness give his account of the accident to David Grace,(832-772-0482)the Geico agent who wanted a phone conversation with my witness,instead of having my witness give a sworn statement to the Rockport,Tx police officer.Another reason i agreed to these phone conversations was because David Grace agreed to send me the phone recordings he had with me and my witness.
    Since Jan./2016,i have asked David Grace and Geico,my case,#(0547900650101018) to send me the recorded phone conversation,especially the one with my witness,which corroborates the other driver being at fault,and so far,(03/08/2016) nothing.
    The last response from Geico was that David Grace was promoted,and the people who replaced him dont know anything about the case or where the recordings that David Grace made are…how convenient!!
    Well i know one thing,if Geico promotes their people by being unethical and potentially criminal,i will NEVER get insurance or recommend Geico to anyone,and i highly suspect the reason they located their corporate office within the DC beltway was to more easily stuff the pockets of crooked politicians to pass laws benefiting Geico!
    Oh,Yea,the other driver is NOT listed on the Geico insurance card for the vehicle he was driving.
    Im pretty sure the other driver CANNOT get insurance because he has a really bad driving record,or because he has trouble controlling his diabetes.
    I called several law offices trying to get a subpoena for Geico to release the recordings,but unless there is significant bodily injury,they dont want to get involved.
    If at present,there is no law stating that ” a person having been diagnosed as DIABETIC AT ANY STAGE,besides having eatable food in the vehicle they are driving,MUST CARRY DIABETIC INSULIN in the vehicle at all times”,there should be such a law.
    I am sure any study done by any insurer,will find that numerous highway vehicle accidents have been caused by people not being as alert as they should be because of their diabetic lethargy,and these people should pay higher premiums.
    Anyway,can anyone offer any advice on how i may be able to get Geico to release the recordings,because i really dont want to take the people who are listed on the Geico insurance card to small claims court.?

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