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
Course Objectives

To gain insight into ethical behavior

To understand why the terms “ethical”
and “moral” are quite different (and
why confusing them presents problems)

To become familiar with inherent
conflicts in being ethical (if it weren’t
hard, everyone would do it)
Course Objectives (con’t)

To understand the value of a code of
ethics

To gain practice in seeing the ethical
dilemmas in common insurance
situations

To exercise individual judgment and
reasoning in addressing ethical
dilemmas, relying upon accepted ethical
approaches and applicable codes of
ethics
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
Ethics
 “Right vs. right” decisions
 Come from the “head” (intellect)
►Codes of expected behavior
►Approved guidelines
►Derived 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-Based
 Rule-Based
 People-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 Information
3. Identifying and Evaluating
Alternatives
4. Reaching the Decision
5. 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
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
Agent Case Studies
#1 – A Friend in Need
#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 –
#12 –
#13 –
Lost
#14 –
School’s Out
Ignorance Can Be Bliss
He Who Hesitates Gets
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 CPCU
Insurance Institute of America
720 Providence Road
Malvern, PA 19355-0716
www.aicpcu.org • (800) 644-2101
cserv@cpcuiia.org