Ethics: An Introduction

Page 4 of 9

The Language of Ethics

Code Words

Words that are carefully and thoughtfully chosen to describe and illustrate the key basis for ethical codes for a group of producers, such as a group of financial planners might go something like this..."We have a personal code of ethics for professional responsibility and conduct that we aspire to achieve."

Words are the tools we use to communicate and clarify that which we wish to transpire to others. Let's take a brief look at them here:

One will do well by learning about, fully understanding, and using words appropriately and accurately in all communication with others.

By dictionary definition, a "Code" is any systematic collection of the existing laws of a country, or of those relating to a particular subject: for example, the Civil Code of France. It is also any system or collection of rules or regulations or a gentleman's code of behavior.

Professional is following an occupation as a means of livelihood or for gain. It pertains to or is appropriate to a professional. Professional refers to engaging in one of a learned profession, such as a professional person. A professional is a person who makes a business of an occupation, practice of an art or sport in which amateurs engage for amusement or recreation.

Conduct is personal behavior and a way of acting. It is deportment as well as a way to behave or manage oneself.

Responsibility is the state of or fact of being answerable or accountable. It is a particular burden or obligation upon one who is responsible. It is the same as answerability and/or accountability.

Aspiring is to long for, aim, or seek ambitiously and to be eagerly desirous, especially for something great or of high value.

Components of the Language of Ethics

The following words and components of ethics are the foundation of what follows throughout the course. Relative to some of the obvious everyday ethical elements, one might consider the following:

Words - I will know about, fully understand, and use words appropriately and accurately in all my communication with others.

Principles and Rules - I recognize that principles and rules are the foundation of any code of ethics and professional conduct.

Integrity - I will offer and provide professional services with integrity.

Objectivity - I will be objective in providing professional services to my clients.

Competency - I will provide services to clients competently and maintain the necessary knowledge and skill to continue to do so.

Fairness - I will perform professional services in a manner that is fair and reasonable to clients, principals, partners and employers, and shall disclose conflict(s) of interest in providing such services.

Confidentiality - I will not disclose any confidential client information without the specific consent of the client unless in response to proper legal processes, to defend against charges of wrongdoing by the client, or in connection with a civil dispute between the agent and client.

Professionalism - My conduct in all matters will reflect credit upon the profession.

Diligence - I will act diligently in providing professional services.

Borrowing - I will avoid the practice of borrowing from or lending to clients.

Misrepresenting, Discrimination, Rebating, Commingling, & Misappropriation-
I will not engage in any of these and I will observe all regulatory issues in providing professional services.

Commission Sharing, Record Keeping, Replacement, and Conflicts of Interest- I will not engage in any of these and I will observe all regulatory issues in providing my clients with quality services.

A Personal Ethical Example - I will pass on what I have learned today to others by my words and by my example.

I realize how simple things can be and are for many, but at the same time how difficult and imperative it is to have all members of the financial professional industry hold an elevated sense of calling to ethical standards and behavior.

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Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and InsuranceEthics101.com, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.