Skill and Competence Issues

C4-L2-P2

Skill and Competence Issues

Many ethical problems producers face or create for themselves can be traced to a simple lack of skill and competence.

For example, according to the 1995 survey, producers think that failure to identify prospects needs and recommend appropriate products are a problem, as are producers who misrepresent their abilities to provide competent service.

It is obvious that these problems would not exist if producers were knowledgeable and competent. A knowledgeable, competent producer would not fail to identify a prospect’s needs nor would he or she have to misrepresent his or her capabilities.

Skill and competence are prerequisites to selling insurance. These qualities are the means by which an insurance producer provides informed options and recommendations that are in the client’s best interest. Therefore, a producer has the ethical responsibility to develop and maintain a high level of knowledge and skill through concentrated study and dedicated work

Skill can be mastered and knowledge can be acquired, but only through dedication and a willingness to work.

All producers should be committed to a program of continuing education and participate in industry organizations, such as the Florida Association of Insurance and Financial Advisors (FAIFA).

Acknowledge those cases or situations that are beyond one's skill level.

No one can be an expert at everything.

When a case is clearly beyond a producer’s expertise, the producer should seek help from a more experienced colleague or other professional.