Chapter 4 - Lesson 1
Ethical Responsibility Continued
C4-L1-P10
Ethical Responsibility Continued
Insurance producers have access to a client's personal and financial information. Ethics require that the producer respect the sensitive nature of this information and keep it confidential. Personal information about a client should never be released without prior approval from the client.
In this context, full disclosure means informing the prospect or client of all facts involving a specific policy or plan so an informed decision can be made.
Two forms that many producers use as educational tools and in sales presentations are the:
- NAIC Buyer’s Guide
- The Policy Summary
The underwriting process for an insurance application can be time consuming. All information on an applicant has to be analyzed so the applicant can be classified accurately and so appropriate rates are charged for the risks involved.
A producer’s ethical responsibilities to his or her client during the underwriting process center on promptness and policy delivery. An insurance producer needs to ensure that there are no unnecessary delays in the underwriting process. This means making sure that all information on the application is complete, accurate and clear before it is submitted. It also means submitting the application without delay. If a producer has reason to believe the underwriting process may take longer than anticipated, he or she should notify the applicant of the delay.