Chapter 4 - Lesson 1

C4-L1-P12

Special Situations

In most cases, an insurance producer needs only common sense to avoid an unethical situation with a policy owner. However, in some specialized areas, such as the sale of estate or business planning insurance, the ethical guidelines are clearly defined by professional organizations chartered to monitor the activities of their practitioners.

The insurance producer who works the estate or business planning market works with other professionals, such as lawyers and accountants. He or she understands that his or her ability to help meet the client’s objectives depends on the involvement of these other professionals and encourages their participation.

The producer understands that each member of the estate or business planning team serves a specific function. The attorney drafts the documents necessary to accomplish the client’s objectives and advises the client of any legal consequences, while the accountant determines the accounting and tax implications and procedures. On the other hand, the producer recommends specific insurance policies or plans in an appropriate amount and ensures that ownership and beneficiary designations conform to the legal agreements prepared by the attorney.