Street-Level Ethics Workshop

1. Street-Level Ethics Workshop developed by: Chris Amrhein, AAI, Consultant

2. 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)

3. Course Objectives • 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

4. 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

5. Ethics • “Right vs. right” decisions • Come from the “head” (intellect) • Codes of expected behavior • Approved guidelines • Derived from morals

6. Today’s Headlines • Are they “moral” or “ethical” issues? • Corporate cheating, corruption • Corporate criminal behavior • Individual profiteering • Stock manipulation • Others?

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

8. Because… First Step in Solving “Moral” Crisis Is to Determine “Right” from “Wrong” -- NOT “Right” from “Right”

9. Approaches to Ethical Decisions • Situation-Based • Rule-Based • People-Based

10. Situation-Based What is the best possible outcome given these circumstances?

11. Rule-Based Follow the rules, and let the chips fall where they may

12. People-Based Follow the Golden Rule: what would you have others do if faced by the same situation?

13. 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

14. Codes of Ethics • Provide set, agreed-upon guidelines for the behavior of those who adhere to them • Examples: • American Institute for CPCU • NAIW • CPIW

15. Questions for Assistance in Ethical Decision Making • Deciding Whether the Situation Has Ethical Dimensions • Gathering Information • Identifying and Evaluating Alternatives • Reaching the Decision • Monitoring the Decision

16. Case Studies

17. Value • Gain experience in working through possibilities • Gain comfort in decision making • Explore differences, consider options in a safe, controlled environment • Practice makes perfect

18. 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

19. Agent Case Studies • #1 – A Friend in Need • #2 – The Case of the Absent Audit

20. Underwriter Case Studies • #3 – The Life of a Field Underwriter • #4 – Who’s the Fairest of Them All?

21. 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

22. Original Underwriter Case Studies • #11 – School’s Out • #12 – Ignorance Can Be Bliss • #13 – He Who Hesitates Gets Lost • #14 – Gone With the Wind

23. Original Claim Adjuster Case Studies • #13 – He Who Hesitates Gets Lost • #14 – Gone With the Wind

24. Now Go Forth and Be Ethical!!!

25. 720 Providence Road· Suite 100 ·Malvern, PA 19355-3433Phone (610) 644-2100 · Fax (610) 640-9676 www.aicpcu.org