Street-Level Ethics

Workshop developed by: Chris Amrhein, AAI, Consultant

To gain insight into ethical behaviorTo gain insight into ethical behavior

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

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

Course Objectives

To understand the value of a code of ethicsTo understand the value of a code of ethics

To gain practice in seeing the ethical dilemmas To gain practice in seeing the ethical dilemmas in common insurance situationsin common insurance situations

To exercise individual judgment and reasoning To exercise individual judgment and reasoning in addressing ethical dilemmas, relying upon in addressing ethical dilemmas, relying upon accepted ethical approaches and applicable accepted ethical approaches and applicable codes of ethicscodes of ethics

Course Objectives

““Right vs. Wrong” decisionsRight vs. Wrong” decisions

““From the heart and the brain”From the heart and the brain” “Feels” like the right thing According to the way I was taught, this IS the right

thing

Morality

““Right vs. right” decisionsRight vs. right” decisions

Come from the “head” (intellect)Come from the “head” (intellect) Codes of expected behavior Approved guidelines Derived from morals

Ethics

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

Today’s Headlines

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

Because…

First Step in Solving “Moral” Crisis Is to First Step in Solving “Moral” Crisis Is to Determine “Right” from “Wrong” -- Determine “Right” from “Wrong” -- NOTNOT

“Right” from “Right”“Right” from “Right”

Situation-BasedSituation-Based

Rule-BasedRule-Based

People-BasedPeople-Based

Approaches to Ethical Decisions

Situation-Based

What is the best possible outcome given these What is the best possible outcome given these circumstances?circumstances?

Rule-Based

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

People-Based

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

Situation-Based: Do the ends justify the means?Situation-Based: Do the ends justify the means?

Rule-Based: What should the rules be?Rule-Based: What should the rules be?

People-Based: Who is to say if the moral code of People-Based: Who is to say if the moral code of the decider is good or bad?the decider is good or bad?

Codes of Ethics can help overcome weaknessesCodes of Ethics can help overcome weaknesses

Inherent Weaknesses

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

Examples:Examples: American Institute for CPCU NAIW CPIW

Codes of Ethics

Deciding Whether the Situation Has Ethical Deciding Whether the Situation Has Ethical DimensionsDimensions

Gathering InformationGathering Information

Identifying and Evaluating AlternativesIdentifying and Evaluating Alternatives

Reaching the DecisionReaching the Decision

Monitoring the DecisionMonitoring the Decision

Questions for Assistance in Ethical Decision Making

Case StudiesCase Studies

Gain experience in working through possibilitiesGain experience in working through possibilities

Gain comfort in decision makingGain comfort in decision making

Explore differences, consider options in a safe, Explore differences, consider options in a safe, controlled environmentcontrolled environment

Practice makes perfectPractice makes perfect

Value

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

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

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

Assumptions

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

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

Agent Case Studies

#3 – The Life of a Field Underwriter#3 – The Life of a Field Underwriter

#4 – Who’s the Fairest of Them All?#4 – Who’s the Fairest of Them All?

Underwriter Case Studies

#7 – How Low Will You Go? #7 – How Low Will You Go?

#8 – The Last Minute Certificate Crunch #8 – The Last Minute Certificate Crunch

#9 – E&S: When Is “Worse” Better? #9 – E&S: When Is “Worse” Better?

#10 – Wrong Is Wrong, but Right for Client#10 – Wrong Is Wrong, but Right for Client

Original Agent Case Studies

#11 – School’s Out#11 – School’s Out

#12 – Ignorance Can Be Bliss #12 – Ignorance Can Be Bliss

#13 – He Who Hesitates Gets Lost #13 – He Who Hesitates Gets Lost

#14 – Gone With the Wind#14 – Gone With the Wind

Original Underwriter Case Studies

#13 – He Who Hesitates Gets Lost #13 – He Who Hesitates Gets Lost

#14 – Gone With the Wind#14 – Gone With the Wind

Original Claim Adjuster Case Studies

Now Go Forth and Be Ethical!!!Now Go Forth and Be Ethical!!!

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www.aicpcu.org