Maryland Insurance Continuing Education - Understanding Ethics

Probably one of the first rules most of us are taughttraining, if something doesn't "feel right, it probably is
is "do unto others as you would have them do untonot right, and the action should be avoided.
you.  This golden rule, whether taught by a parent,Three.  The third obstacle pits absolutism against
teacher or religious leader, is a cornerstone for manyrelativism. One school of thought believes that certain
as it serves as a practical guide to everyday life.actions, in and of themselves, are always right.  This
As insurance professionals deal with the public, theis called  absolutism. Another school  believes that
golden rule takes on more than a philosophicalwhether an action is good or right depends upon the
meaning.  The practical level of such a statementparticular circumstances of a situation. This is
applies to the basic code of ethics that agents mustrelativism.  As insurance professionals market their
use not only in their personal lives, but also, in theirservices, they are obligated to follow the rules that
daily responsibilities in their business dealings.have been instituted to spell out what is considered
Many believe that social behavior that favors theto be right or wrong. This would be an example of
group over the individual should be emphasized.  Butabsolutism.  However, when dealing with the
there are four basic obstacles that must be dealtmultitude of clients needs, the insurance professional
within order to act ethically.must offer different solutions for different clients,
One. The primary obstacle has to do with concernthus relativism is being practiced.
for self versus others.  This obstacle could preventFour.  The fourth obstacle deals with the possible
the individual from looking out for the "commonconflict between religious teaching and individual
good" of society, as opposed to making a decisionauthority.  Most religions delineate right from wrong
purely on the individual's own happiness and welfare. according to a strict code of authority.  Some
From an insurance standpoint, this means that agentsphilosophers reject such a notion and stress that
should put the interests of their clients ahead of theireach individual creates their own set of values. 
own good.Religions vary widely as to practices and beliefs as do
Two.  The second obstacle relates to the intuitionindividual values.  However, most of the religions and
versus rationalism obstacle.  While some philosophersindividual value systems agree on one basic rule: The
believe that humans intuitively know what is right,golden rule, overall, ethics can be narrowed down to
others tell us we must use pure reason to uncoverone general definition, which Albert Schweitzer left
what is right.  The problem in the insurance industryfor the ages.  "Ethics is the name we give to our
is "does one have a ready excuse for improperconcern for good behavior.  We feel an obligation to
behavior because he/she did not know the rules?  Inconsider not only our own personal well being but
order to apply reason in the insurance profession, wealso that of others and of human society as a
must know the rules!  One realizes the importancewhole."  To summarize such a definition, only three
of proper training when this  precept  is  used.  words are needed: Regard for others.
However, realistically speaking, even without proper