Ethics and Code of conduct.

Chapter 15

1. Mr. Sharma is newly recruited insurance advisor. To meet his monthly target he explains only the good points of newly launched plan to his customer. Here Mr. Sharma’s behavior is unethical.
2. If there is a significant reduction in the proportion of an insurance policies which are returned during free look period, this tend to indicate that ethical practices by the company have improved.
3. An advisor while explaining the policy and to sell he accept to give a part of his agents commission. This is wrong practice and he cannot offer any commission.
4. Shankar an advisor sold a term insurance policy & unit linked policy (ULIP) to Amar, the client who is unmarried and has no dependent. Consequently Shankar’s action can be termed as Overselling of Insurance policies.
5. When insufficient emphasis is placed on the long term nature of life insurance policies during selling process, this will often be apparent by nothing the impact on persistency ratio.
6. Pankaj being a License insurance advisor has to follow the code of conduct provided by IRDA.
7. Rahul is a licensed insurance agent. As insurance agent he must carry out his role in accordance with IRDA regulations code of conduct.
8. Explaining all detail of the policy to customer is not unethical behavior.
9. Ethics can be defined as :
   1. Those values we commonly hold to be “good or right”.
   2. Behavior that is based upon the moral judgment of an individual.
   3. A study what makes one’s own actions right or wrong?
   4. Raju is certified License holder under all circumstances he needs to hold his certified license with him issued by IRDA.
   5. IRDA has laid down the code of conduct for all agents.
   6. After doing need analysis of the client, the agent advised the client to opt for TERM product but the client refused. According to ethical business practices agent should inquire about the refusal from the client.
   7. If the sales target of an insurance agent significantly reduced, this should normally have more likely impact on the activity of churning.
   8. Under the hospital care rider the payout made is “specified amount multiplied by the number of days the policyholder is hospitalized”.
   9. A policy has been rejected by the company under direct intimation to the customer and copy to the agent. The next action of the agent is to explain the reason for rejection to the customer.
   10. For an insurance advisor CHURNING is a bad practice.

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