Ethics Part I(1.5 Credit Hour) TDI Course No.

 

Chapter 3:

3.1 INSURANCE MARKETPLACE STANDARDS ASSOCIATION (IMSA)

Obviously, insurers have had ethics problems. Insurers have tried to improve their image by stressing ethical behavior in training, improving their agent"s training programs, completely changed the illustration process and numbers, and other such related items directly addressing the problems. One result of all of this turmoil was the formation of the Insurance Marketplace Standards Association (IMSA) in 1996. This is a voluntary association, which encourages life insurers to maintain high standards of ethical behavior in the sales and marketing of individual life insurance and annuities by becoming members. These standards only apply to selling and marketing, and not to other areas (suchas claims, underwriting, policyholder service, etc.). Insurers voluntarily adopt the Principles of Ethical Market Conduct and then create programs and change existing programs to comply. Insurers do a self-assessment, and make changes accordingly. But perhaps most importantly, the company must secure a favorable opinion by an independent assessor of the company"s policies and procedures before they can advertise as being a member of IMSA.

3.2 PRINCIPLES OF IMSA

"Each IMSA member pledges to comply with the following principles in all matters affecting the marketing and sale of individually issued life insurance and annuity products:

• To conduct business according to high standards of honesty and fairness and to Render that service to its customers, which, in the same circumstances, it would apply to or demand for itself.
• To provide competent and customer-focused sales and service.
• To provide advertising and sales materials that are clear as to purpose and honest and fair as to content.
• To provide fair and expeditious handing of customer complaints and disputes.
• To maintain a system of supervision and review that is reasonably designed to achieve compliance with this Principle of Ethical Market Conduct.

3.3 Working Definition of Management and Leadership

A helpful way of understanding the concepts of this self-study course is to begin with a working definition of managers and leaders:

According to Stephen Covey, author of “7 Habits of Highly Effective People,” “Managers make sure that things are done right. Leaders make sure that people are doing the right things.”

3.4    Purpose:

1.      To identify how effective management can positively impact the team, agency, agent and customer.

2.      To discover barriers to effective management.

3.      To obtain practical tools, tips and techniques on effective management from successful agents.

a.      To provide, through stories, anecdotes, experience additional tips and techniques for managing an agency more effectively.

b.      To develop an action plan for applying these practical tools, tips and techniques back in the workplace.

c.    To identify how results will be measured from action taken.

4.      To provide a multiple choice assessment to ascertain the knowledge gained from completing this AIAA Managing Effectively CE Course.

5.      To assist the student of this online self-study CE course in fulfilling the precepts of the AIAA Motto: Aim, Innovate, Apply and Achieve.

 

3.5 When you are ineffective at managing your team/agency, the following can occur:

• Low Morale
• High Turnover
• Hidden Problems
• Low Productivity
• Unclear Expectations
• Missed Deadlines
• Poor Teamwork
• Poorly Trained Staff
• Poor Customer Service
• Customers Leave for Competition

1.6 Ineffective managers reap the following from poor agency employees (agents, adjusters, clerical) team members who operate in a climate conducive to:

• Reliance on individual abilities
• Panic when workload peaks
• Backbiting
• Protecting information
• Feeling unaccomplished
• Stress on the "supervisor"