1. Street-Level Ethics Workshop sponsored by: American Institute for CPCU Ins. Institute of America Presented by: Workshop developed by: Chris Amrhein, AAI, Consultant Copyright © 2003 American Institute for CPCU

2. Course Objectives  To gain insight into ethical behavior  To understand why the terms “ethical” and “moral” are quite different (and and “moral” are quite different (and why confusing them presents problems) why confusing them presents problems)  To become familiar with inherent conflicts in being ethical (if it weren’t conflicts in being ethical (if it weren’t hard, everyone would do it) hard, everyone would do it)

3. Course Objectives (con’t) Course Objectives (con’t)  To understand the value of a code of ethics ethics  To gain practice in seeing the ethical dilemmas in common insurance dilemmas in common insurance situations situations  To exercise individual judgment and reasoning in addressing ethical reasoning in addressing ethical dilemmas, relying upon accepted ethical dilemmas, relying upon accepted ethical approaches and applicable codes of approaches and applicable codes of ethics ethics

4. 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

5. Ethics  “Right vs. right” decisions  Come from the “head” (intellect) ► Codes of expected behavior ► Approved guidelines ► Derived from morals

6. Today's Headlines  Are they “moral” or “ethical” issues? Corporate cheating, corruption Corporate criminal behavior Individual profiteering Stock manipulation Others?

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

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

9. Approaches to Ethical Decisions  Situation-Based  Rule-Based  People-Based

10. Situation-Based What is the best possible outcome given these circumstances?

11. Rule-Based Follow the rules, and let the chips fall where they may

12. People-Based Follow the Golden Rule: what would you have others do if faced by the same situation?

13. 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

14. Codes of Ethics  Provide set, agreed-upon guidelines for the behavior of those who adhere to them  Examples: American Institute for CPCU NAIW CPIW

15. Questions to Assist in Ethical Decision Making 1.Deciding Whether the Situation Has Ethical Dimensions 2.Gathering Information 3.Identifying and Evaluating Alternatives 4.Reaching the Decision 5.Monitoring the Decision

16. Case Studies

17. Value  Gain experience in working through possibilities  Gain comfort in decision making  Explore differences, consider options in a safe, controlled environment  Practice makes perfect

18. Assumptions  Scenarios must be realistic, not “pie in the sky” purely theoretical discussions  Work through regular steps; do not try to solve all problems at once  Goal is to strengthen your “ethical muscles” for future crises

19. Agent Case Studies #1 – A Friend in Need #2 – The Case of the Absent Audit

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

21. Adjuster Case Studies #5 – Patch or Match? #6 – Do Wrong and Wrong Make It Right?

22. 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

23. Original Underwriter Case Studies  #11 – School’s Out  #12 – Ignorance Can Be Bliss  #13 – He Who Hesitates Gets Lost  #14 – Gone With the Wind

24. Original Claim Adjuster Case Studies  #13 – He Who Hesitates Gets Lost  #14 – Gone With the Wind

25. Now Go Forth and Be Ethical!!!

26. American Institute for CPCU Insurance Institute of America 720 Providence Road Malvern, PA 19355-0716 www.aicpcu.org cserv@cpcuiia.org (800) 644-2101