Ethics and Insurance

March is National Ethics Awareness month - a good time to take a closer look at ethics in general and ethics as it relates to insurance.

 

Ethics wooden sign on a beautiful day

What is ethics?

According to the Merriam-Webster dictionary, the definition of ethics is "the discipline of dealing with what is good and bad with moral duty and obligation."   Ethics may be defined as a system of moral principals or values. 

Did you know that in order to be a licensed insurance professional in the state of Massachusetts, we are required to take 3 hours of classroom education on ethics in order to get our license as well as 3 additional hours every 3 years? 

Why must insurance agents be ethical?

Besides being simply the right thing to do, it's also the law.  Each state has a series of laws designed to protect consumers from unscrupulous practices of insurance agents, insurance companies, and insurance adjusters.  These laws deal with issues such as:

  • Who is qualified to do business (licensing)
  • Rebating (illegal in most states including MA)
  • Disparagement of a competitor
  • Unfair business practices
  • Advertising practices
  • Privacy of consumer information
  • Unfair claims practices
  • more

Insurance is a business of utmost good faith

Insurance is a business of the sharing of information.  A series of questions are asked, and information is provided that requires honesty from everyone involved.   The consumer or business owner expects that the insurance company will pay what their policy states.  At the same time, the insurance company is relying on accurate information provided  and any changes to that information, in order to affect their underwriting decision.  Utmost good faith is broken by misstatements, incomplete answers, and by unfair business practices.  

Here at Elliot Whittier Insurance, we take our ethical obligations seriously.  Please take a moment to read our Mission & Principles statement.

Information obtained from the National Alliance for Insurance Education and Research and from Miriam-Webster Dictionary

 

What to do Next?

Have us review your insurance policies and check that your limits are sufficient. Ask what the cost is to bump it up under higher limit scenarios.

Call today 617-846-5000 or click here 24/7/365 and we will get back to you same day or the next business day