Chapter 6

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=90 BGCOLOR="#006699" TEXT="#080000" bgproperties="fixed" background="122285a1erlcgo.gif"> <div> <FONT SIZE="5" COLOR="#FFCC66" FACE="Arial" ><B>Florida Agent Ethics</B></FONT><B>     |     </B><A HREF="index.htm" TARGET="_top" TITLE="Florida Agent Ethics"><U><B>home</B></U></A><B>            </B><A HREF="id15.htm" TARGET="_top" TITLE="TABLE OF CONTENTS"><U>TABLE OF CONTENTS</U></A>   |   <A HREF="id55.htm" TARGET="_top" TITLE="FINAL EXAMINATION"><U>FINAL EXAMINATION</U></A></div> <div> <A HREF="id3.htm" TARGET="_top" TITLE="Chapter 1"><U>Chapter 1</U></A>   |   <A HREF="id66.htm" TARGET="_top" TITLE="Chapter 2 "><U>Chapter 2  </U></A>   |   <A HREF="id2.htm" TARGET="_top" TITLE="Chapter 3 "><U>Chapter 3  </U></A>   |   <A HREF="id5.htm" TARGET="_top" TITLE="Chapter 4 "><U>Chapter 4 </U></A>   |   <A HREF="id6.htm" TARGET="_top" TITLE="Chapter 5 "><U>Chapter 5 </U></A>   |   <B>Chapter 6 </B>   |   <A HREF="id51.htm" TARGET="_top" TITLE="Code of Ethics"><U>Code of Ethics</U></A></div> <div> </div> </td> </tr><tr> <td valign="top" width=210 BGCOLOR="#FFCC66" TEXT="#080000" background="121d2c00dkelyh.gif"> <div> <A HREF="mailto:instructor@wallstreetinstructors.com" TARGET="_top" TITLE="mailto:instructor@wallstreetinstructors."><U><IMG SRC="12caf630.gif" border=0 width="175" height="99" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></U></A></div> <div> <I><B>You can contact an instructor by clicking the Wall Street Instructors logo on any page.</B></I><FONT SIZE="3" COLOR="#003399" FACE="Arial" > </FONT></div> <bR> <div> Copyright ©2007 Wall Street Instructors, Inc. All rights reserved. No portion of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any means electronic, mechanical, photocopying, recording or otherwise without prior written permission of Wall Street Instructors, Inc.</div> <bR> </td> <td valign="top" height=390 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <I>Chapter 6 </I></div> <div> <B>Other Ethical Issues</B></div> <bR> <bR> <div> The important points addressed in this lesson are:</div> <bR> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.gif" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Agents owe a fiduciary duty to the insurers they represent. </div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.gif" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Agents have a duty to act with reasonable care in the performance of his or her duties, including the duty to solicit profitable business for the insurers they represent.</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.gif" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Agents must fully disclose all pertinent information when placing a policy with an insurer.</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.gif" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">A customer's reasonable expectations of agent's acts can affect the agent's liability.</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.gif" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Certain terms, because of their propensity to mislead, cannot ethically be used</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.gif" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Certain acts -- rebating and replacement -- while legal, are prone to ethical abuses and should be approached carefully by an agent </div> <bR> <bR> <div> The ethical and legal issues that have been examined to this point have focused on the agent's interaction with prospects and clients.  However, as we noted earlier in our discussion of the law of agency, there is another important relationship that may give rise to ethical and compliance issues -- the agent's relationship with represented companies.  Furthermore, as courts have shifted their legal reasoning from <I>caveat emptor to</I> <I>caveat vendor,</I>  sellers in the marketplace are under increasing scrutiny.  Agents, as salespersons, should be aware of this increased scrutiny of their actions and deal with both client and insurers in an ethical manner. .  </div> <bR> <div> <A HREF="id38.htm" TARGET="_top" TITLE="Fiduciary Responsibility"><U>Fiduciary Responsibility</U></A></div> <div> <A HREF="id40.htm" TARGET="_top" TITLE="Replacement, Twisting and Churning"><U>Replacement, Twisting and Churning</U></A></div> <div> <A HREF="id39.htm" TARGET="_top" TITLE="Rebating Gifts"><U>Rebating & Gifts</U></A></div> <div> <A HREF="id41.htm" TARGET="_top" TITLE="Client Expectations"><U>Client Expectations</U></A></div> <div> <A HREF="id42.htm" TARGET="_top" TITLE="Misleading Terms"><U>Misleading Terms</U></A></div> <div> <A HREF="id43.htm" TARGET="_top" TITLE="Chapter 6 Review Questions"><U>Chapter 6 Review Questions</U></A></div> <bR> <bR> <div> <TABLE BORDER="2" CELLPADDING="1" CELLSPACING="1" WIDTH="97" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" BGCOLOR=#FFCC66 > <tR> <tD VALIGN=CENTER HEIGHT= 38 WIDTH="87"><div> <A HREF="id38.htm" TARGET="_top" TITLE="Fiduciary Responsibility"><U><B><U>NEXT</U></B></U></A></div> </tD> </tR> </TABLE></div> <bR> <bR> </td> </tr></table></body>