Street-Level EthicsStreet-Level Ethics

Workshop sponsored by:American Institute for CPCUIns. Institute of America

Presented by:

Workshop developed by:Chris Amrhein, AAI, Consultant

Copyright © 2003 American Institute for CPCU

Course ObjectivesCourse Objectives To gain insight into ethical behaviorTo gain insight into ethical behavior

To understand why the terms “ethical”To understand why the terms “ethical” and “moral” are quite different (andand “moral” are quite different (and why confusing them presents problems)why confusing them presents problems)

To become familiar with inherent To become familiar with inherent conflicts in being ethical (if it weren’tconflicts in being ethical (if it weren’t hard, everyone would do it)hard, everyone would do it)

Course Objectives Course Objectives (con’t)(con’t)

To understand the value of a code of To understand the value of a code of ethicsethics To gain practice in seeing the ethical To gain practice in seeing the ethical dilemmas in common insurance dilemmas in common insurance situationssituations To exercise individual judgment and To exercise individual judgment and reasoning in addressing ethical reasoning in addressing ethical dilemmas, relying upon accepted ethicaldilemmas, relying upon accepted ethical approaches and applicable codes of approaches and applicable codes of ethicsethics

Morality

“Right vs. Wrong” decisions“From the heart and the brain”

“Feels” like the right thing According to the way I was

taught, this IS the right thing

EthicsEthics

““Right vs. right” decisionsRight vs. right” decisions Come from the “head” (intellect)Come from the “head” (intellect)

►Codes of expected behaviorCodes of expected behavior►Approved guidelinesApproved guidelines►Derived from moralsDerived from morals

Today's Headlines

Are they “moral” or “ethical” issues? Corporate cheating, corruption Corporate criminal behavior Individual profiteering Stock manipulation Others?

A True Moral Crisis Is Not Solvable By an Ethical Process...Why?

Because...

First Step in Solving “Moral” Crisis Is to Determine “Right” from “Wrong” -- NOT “Right” from “Right”

Approaches to Ethical Decisions

Situation-BasedRule-BasedPeople-Based

Situation-Based

What is the best possible outcome given these circumstances?

Rule-Based

Follow the rules, and let the chips fall where they may

People-Based

Follow the Golden Rule: what would you have others do if faced by the same situation?

Inherent Weaknesses

Situation-Based: Do the ends justify the means? Rule-Based: What should the rules be? People-Based: Who is to say if the moral code of the

decider is good or bad?

Codes of Ethics can help overcome weaknesses

Codes of Ethics

Provide set, agreed-upon guidelines for the behavior of those who adhere to them

Examples: American Institute for CPCU NAIW CPIW

Questions to Assist in Ethical Decision Making

1.Deciding Whether the Situation Has Ethical Dimensions

2.Gathering Information3.Identifying and Evaluating

Alternatives4.Reaching the Decision5.Monitoring the Decision

Case Studies

Value

Gain experience in working through possibilities

Gain comfort in decision making Explore differences, consider options in a

safe, controlled environment Practice makes perfect

AssumptionsAssumptions

Scenarios must be realistic, not “pie in the Scenarios must be realistic, not “pie in the sky” purely theoretical discussionssky” purely theoretical discussions

Work through regular steps; do not try to Work through regular steps; do not try to solve all problems at oncesolve all problems at once

Goal is to strengthen your “ethical muscles” Goal is to strengthen your “ethical muscles” for future crisesfor future crises

Agent Case StudiesAgent Case Studies

#1 – A Friend in Need#1 – A Friend in Need

#2 – The Case of the Absent Audit#2 – The Case of the Absent Audit

Underwriter Case Studies

#3 – The Life of a Field Underwriter#4 – Who’s the Fairest of Them All?

Adjuster Case Studies

#5 – Patch or Match?#6 – Do Wrong and Wrong Make It Right?

Original Agent Case Studies

#7 – How Low Will You Go? #8 - The Last Minute Certificate

Crunch #9 - E&S: When Is “Worse”

Better? #10 - Wrong Is Wrong, but

Right for Client

Original Underwriter Case Studies

#11 – School’s Out #12 – Ignorance Can Be Bliss #13 – He Who Hesitates Gets

Lost #14 – Gone With the Wind

Original Claim Adjuster Case Studies

#13 – He Who Hesitates Gets Lost

#14 – Gone With the Wind

Now Go Forth and Be Ethical!!!

American Institute for CPCUInsurance Institute of America720 Providence Road Malvern, PA 19355-0716

www.aicpcu.orgcserv@cpcuiia.org

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