Continuing Education

edward hulse asked:


Moral codes controlling human behavior have existed for thousands of years.  These standards have evolved, not only in moral codes, but also in conjunction with religious beliefs.

In ancient Egypt, precepts were established by secular leaders.  Their precepts were combined with a strict religion that affected the behavior of all Egyptians.

In Israel, moral behavior was guided by the Judaic religion.

Greek thinkers were the first to speculate about the question of right or wrong.  Names such as Socrates, Aristotle and Plato appear as the great philosophers in this period of history.

Early Christian belief focused upon the role of God in achieving good.  The early Christians believed that with God’s help it was possible to achieve good.  Will and intelligence alone were insufficient.

Probably the biggest influence in the business community came from a modern philosopher Charles Darwin.  Darwin believed that only the fittest would survive.  Thus, many businessed believed that only the fittest will survive in a free enterprise system.  Each person in business must look after his/her own interests, period! Although this philosophy might have appeared as a logical business belief, it has provoked much distrust in the public sector.  When this occurs, usually what follows is a clamor for strict regulation in order to be sure that the public’s best interests are being served.

Adam Smith in The Wealth of Nations offered the business community a set of guidelines to follow.  Mr. Smith believed in ethics.  He believed that business is based on mutual agreements of what constitutes fair exchange.  In other words, business could not operate efficiently without its participants paying their debts and living up to there agreed upon contracts.  This philosophy, which had been embraced by the business community, stimulated capitalism and its popularity in the United States.  Basically, business became a cooperative enterprise and was to be enjoyed by all individuals.  In reality, business became a set of ethics.

Kentucky Insurance Continuing Education

Insurance Continuing Education



Vinyl Siding For Your Home

edward hulse asked:


Unfortunately, our society is not always critical of wrongdoing.  Society values wealth accumulation and ignores the means by which wealth has been gained.

One can see this emphasis on personal financial gain in the insurance industry as financial gain is often held out as the primary measure of success.  We are not saying that achieving financial success is evil, it is not.  The manner in which one gains financial success is much more important than the financial gains themselves.

Unfortunately, the insurance industry, with its heavy emphasis on production has a tendency to spotlight financial achievement while ignoring the professionalism and integrity of its sales force.  Financial incentives such as “APP a Day

Clubs” and “Top Producer of The Month” contests may often lead to bogus business and questionable sales practices.

Certainly, agents should expect to be fairly compensated for success, and production figures are vital to the well being of any agency or insurance company.  However, just as important is meeting the needs of clients and the public in an ethical and professional manner.

Ethics does not need to be incompatible with capitalism.  Profit is not a dirty word! 

If one perceives the insurance professional as a good person then doing business will be that much easier.  In the long run, good ethics is good business.  Fair competition cannot help but benefit the public.  Selling insurance is an aggressive profession, which leads to heightened competition.  It is this competition that has led to better products, and services for the general public. 

Ethics is personal in nature.  Since we have no control over others, we must control our own actions in a professional, ethical manner.

Washington Insurance Continuing Education

Insurance Continuing Education



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edward hulse asked:


As the insurance professionals practice grows he/she will realize the importance of service.  Frequently such service will involve advice on a broad spectrum of topics.  In some cases, technical subject matters will arise.  Obviously, in order to answer such questions, the insurance professional must always be upgrading educational levels.  With the insurance industry changing almost daily, the professional must also work at “keeping current.  For example, many insurance professionals find themselves working in the complex world of estate planning.  In order to competently render sound advice, as to how life insurance should be owned, the insurance professional must be proficient about tax codes, trusts and probate laws.  One can see the importance of education in the servicing area.

The insurance professional should realize that service, during and after the sale, is a critical step in building a clientele.

The term service means many things to many people but for our purposes we will focus on the following five broad areas of service as they relate to the insurance industry:

•    Educating the client, not only after the sale but also before and during it.  Our goal is to have the client understand the application and underwriting process, along with the policy and any riders.

•    Confidentiality, always treating the client’s financial and personal affairs with utmost confidentiality.

•    Disclosure, always disclosing all information needed by the policy-owner or applicant so that he/she can make an informed decision.

•    Notifying the client of any rejection, exclusions, or cancellations.

•    Loyalty to the client is of utmost concern.  Part of this area would be providing a full range of services in order to assist the client in financial planning activities.

THE APPLICATION PROCESS - LIFE AND HEALTH

With the intense emphasis on production, today’s insurance agents sometimes fail to realize the importance of the application process.  The insurance professional must always be sure that the applicant provides accurate information to the questions on the application.  The insurance professional has an ethical responsibility to educate prospective insureds to be sure that the applicant fully understands the nature of the application.

CONDITIONAL RECEIPT

Since this area is mostly overlooked and misunderstood, it should be covered.

A conditional receipt is given in exchange for the initial premium at the time of application.

It provides that the applicant is covered immediately from the date of application as long as he/she passes the insurer’s underwriting requirements.  If a medical examination or blood profile is required, the date of coverage begins when the applicant passes the medical examination.

This information about the conditional receipt should be made clear to the applicant.  Many applicants are accustomed to homeowners or automobile insurance where the coverage begins immediately upon the issuance of the binding receipt. One can understand the confusion when life insurance is being purchased.  It is the insurance professionals ethical responsibility to explain that the applicant is covered on the condition that he/she meets the required underwriting requirements of the insurance company.

Kentucky Insurance Continuing Education

Insurance Continuing Education



Candy Vending Machines

edward hulse asked:


The agency contract will spell out clearly the express authority, which is granted to an insurance professional by the insurance company.  The agency relationship, which binds the insurance company, can also be created by using implied authority, apparent authority and ratification.

Express Authority

This type of authority is the simplest to understand because it is specifically spelled out under the agency contract and granted to the insurance agent.  An example would be giving the insurance agent authority to describe appropriate coverages.

Not many legal questions arise in regard to express authority. This type of authority is easily identified from the terms of the agency contract.

Implied Authority

One enters into the “gray” area of agency law when dealing with implied authority.  An agent has authority to act on the insurance company’s behalf when he/she reasonably believes that such authority has been given.  For example, the insurance company cannot possible list out all details of the express authority given to the agent.  Thus, implied authority is evident.  This authority is granted by the insurance company to the agent but is not written in the contract.  Probably the best example of implied authority is the use of a conditional receipt.  When the agent accepts a check from an applicant for insurance, he/she is binding the carrier to make every effort, within reason, to insure the applicant.

Apparent Authority

This authority creates a legal minefield for both the agent and the insurance company.  The best way to explain the abuse of apparent authority is to use an illustration.

Agent Herb works for the Prairie Mutual Life Insurance Company for four months.  Due to lack of production, agent Herb’s contract is terminated.  Agent Herb keeps all company materials.  Agent Herb sells a policy to Hal.  Hal relies on the apparent authority placed in Herb by Prairie Mutual.

Ratification

At times, insurance professionals sell products which they are not licensed to sell.  In these situations, the insurance company is not obligated to honor the insurance professional’s acts.  However, if the company does issue the policy, this is called ratification.  Ratification is simply the validation of an unauthorized act.

Ratification needs five elements:

1.   The person (insurance professional) who performed the act must have purported to act on behalf of the principal   (the insurance company).

2.   The insurance professional must have represented himself/herself as an agent of the insurance company.

3.   The client must have believed he/she was dealing with an authorized agent of the insurance company.

4.   Only the principal in whose name the action was taken can ratify the agents action.

5.   The principal must ratify the entire transaction not just parts.

Four Legal Implications of Agency

The agency contract between an agent and an insurance company includes four legal implications.

1.    The agent represents the interests of the insurance company.  This means that the   agent’s legal responsibility and obligation are to the insurance company not to a potential client.  We will discuss these agent obligations a bit later.

2.   The agent is given power to act on behalf of the insurance company.  The agent can create legal liability for the insurance company under the insurance contract.

3.   The acts of the insurance agent are considered acts of the insurance company.  When a debit agent collects premiums, this is considered collection by the insurance company.

4.   Knowledge of the insurance agent is considered to be knowledge of the insurance company.  If the agent has knowledge of health matters pertinent to the issuance of insurance, it is assumed that this information is also available to the carrier.



New Hampshire Insurance Continuing Education

Insurance Continuing Education



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edward hulse asked:


In reality, the insurance professionals and agents have a lot to do with the projection of a certain image toward the public. Mainly because the insurance professional initiates contact with a prospect, determines the prospect’s need for insurance, recommends and then implements the proposed plan. The first impression is always the most lasting. Coupled with the opportunity for a long-lasting relationship with the client, the first impression becomes that much more critical. The insurance professional represents an industry that is loaded with technical information. Public perception will be severely hampered by unethical agents. The insurance professional has two basic ethical responsibilities to the public: ” To inform the public about insurance with the utmost, highest level of professional integrity; and ” To strive for the highest level of professionalism in all public contacts in order to create and maintain a strong positive image of the industry. We will focus on the above responsibilities and look at some of ethical practices, which have tarnished the industry. We will also discuss property and casualty insurance, and the manner in which it is marketed to the public. Property and Casualty Insurance Coverage Property casualty insurance is usually classified by several major lines of insurance: fire insurance and allied lines, marine insurance, casualty insurance, multiple line insurance and fidelity and surety bonds. Property insurance, such as fire or homeowners policies, covers the loss or damage to real estate or personal property from fire, lighting or other covered perils. Marine insurance (also called transportation insurance) covers goods in transit against pure risks related to transportation, whether those goods are shipped over land (inland marine) or water (ocean marine). A broad field of insurance called casualty insurance encompasses almost everything not covered by fire or marine insurance: automobile insurance, general liability, burglary and theft, worker’s compensation, glass coverage and other miscellaneous lines The agent may also sell multiple-line or package policies that combine property and liability coverages. Finally, an agent may sell fidelity and surety bonds that provide the insured with protection against losses caused by the dishonest or fraudulent acts of employees or that provide monetary compensation in the case of a bonded person’s inability to perform certain acts, such as the completion of the construction of a building.

California Insurance Continuing Education

Insurance Continuing Education



Outdoor Bamboo Fountain

edward hulse asked:


There are three areas of possible abuse concerning the fiduciary obligations that agents face.  These situations are replacement, use of free look provision, and rebating.

Replacement

Replacement of previously purchased insurance may or may not be valid depending upon individual client needs and circumstances.  This area has been highly regulated as abuses by agents can have serious implications for insurance companies.

In general, replacement of a policy should not be executed where it is clearly disadvantageous to the client.  Replacement is also ill advised where it is used by an agent as a systematic method of obtaining new business.

The proper steps to take when a replacement situation arises should be:

•    Be sure to provide the client with a written comparison showing the advantages and disadvantages of retaining the old policy versus obtaining the new coverage.

•    Provide the insurance company with all requested information regarding the replacement on the insurance application.

By determining client needs through proper questioning and fact-finding skills the need to replace will be diminished.  Coordinated with a systematic prospecting system the need for replacement will be eliminated.

Abuse of Free Look Rules

Most states mandate that insurance prospects be given a “free look.@  State laws give an insurance prospect 10-20 days to decide if they wish to accept the insurance policy as issued.  The purpose of this “free look” provision is to protect consumers from high-pressure sales tactics.  If the consumer declines the coverage within the allowed period, he/she is entitled to a full refund.

The “free look” period begins from the date of policy delivery.

Agents should remember that their basic fiduciary duties to their insurance companies are always paramount.  Abuse of “free look” is violation of the fiduciary role that the company has bestowed on the agent.

Abuse of Rebate Rules

Rebating is knowingly permitting, or offering to make, or making, any contract or agreement as to such contract other than is plainly expressed in the issued insurance contract.  However, most agents know rebating as paying, allowing, or giving, or offering to pay, allow, or give, directly or indirectly, as an inducement to an insurance contract, any rebate of premiums payable on the contract.  In competitive situations, a rebate can “make” or “break” a sale.  When an agent offers to rebate part of his/her commission to a client in order to make a sale, the agent is violating his/her fiduciary duty to the insurance company.

Idaho Insurance Continuing Education

Insurance Continuing Education



Give Me The Steps Of CPR

edward hulse asked:


The insurance professional must be aware that he/she has five areas in which to act ethically. They are:

-          Act ethically for himself/herself.

-          Act ethically toward the insurer.

-          Act ethically toward the policy-owner.

-          Act ethically toward the general public.

-          Act ethically toward the state.

Ethical Responsibilities to himself/herself

The agent must act ethically in order to conduct business.  Experience alone will not be enough to meet this extremely important responsibility.

Ethical Responsibilities to the Insurer

The duties of an insurance professional to his/her insurer are established by the concept of “Agency.”  This concept is represented by the agent contract, which both parties agree to and sign.  In carrying out his/her duties, the insurance professional  is  the direct  representative of the insurer.  The professional must keep this in mind.  His/her day to day activities will be a direct reflection on the insurer within the community.

Ethical Responsibilities to Policy-Owners

By filling needs and providing quality service, the insurance professional can meet his/her ethical responsibilities to policy-owners.  Service is of utmost importance since proper service will often lead to future sales and referrals.

In addition, to quality service, the agent owes the policy-owner loyalty.  The agent must also meet ethical responsibilities to policy owners by timely submission of all applications, prompt policy delivery and confidentiality.

Ethical Responsibilities to the Public

Fortunately, the insurance professional has much more control over shaping the public’s attitude toward insurance than do the other army of sales representatives for other consumer products.  The nature of the way insurance is sold creates this advantage.  The insurance professional initiates contact with a prospect, then determines if and what the insurance needs are.  Upon completing these tasks, the agent recommends certain products.  During the course of making these recommendations the agents provides a professional sales presentation and attempts to develop a long-term relationship with quality service after the sale.

Since this unique situation requires a great deal of contact between the consumer and the agent, public perception of the industry itself is based on this relationship.  Such perceptions of the industry hinge on the behavior of the agent.  One can now understand the importance of ethical behavior in a business setting.

The professional agent has two ethical responsibilities to the public:

- To strive for the highest level of professionalism in any and all public contact in order to maintain the strongest positive image of the industry as possible; and

- To keep the public informed about the insurance with the highest level of professional integrity.

Ethical Responsibilities to the State

Although the responsibility to regulate the insurance industry is shared by both the federal and state governments, the states carry the burden of regulating insurance affairs, including the ethical conduct of licensed insurance agents.

In some states, the regulation of ethical conduct falls under marketing practices while other states refer to is as unfair trade practices.  Regardless of its monitor, all states have established a code of ethical standards for insurance agents by defining through laws the proper behavior expected from an agent.  Though these laws differ from state to state, there are enough similarities to discuss them in general terms.  As we study the legal framework, one must remember these laws provide the industry with a set of absolutes.  There are situations which are legal but not ethical.  On the other hand, there are a few  situations, which are illegal,  but  ethical.

Knowledge of such laws is important because they provide the insurance professional with guidelines, pointing the way to stay out of trouble.  Staying out of trouble is very important due  to  the  heavy penalties that can be meted out for various violations of the law.  Penalties can include suspension or revocation of any insurance license.  Penalties can also include the payment of monetary damages and could quite possible end a promising career.

Illinois Insurance Continuing Education

Insurance Continuing Education



Closet Storage Systems

david wolf asked:


All states are different when it comes to what requirements need to be meet for continuing insurance education. Illinois has it pretty easy compared to many states. This article lets you know exactly what you need to do to fulfill you requirements

To renew your insurance license you will have to complete a total of 30 hourse of ce credit every two years. There are dozens of courses to choos from that can fulfill this generic requirement. You can take course that count towards a selective requirement that count for this as well.

If you are planning on selling Long-Term-Care of LTC in the state of illinois you are going to have to complete a one-time six-hour state- specific requirement before you can legally sell LTC products.The course is relatively simple, but it is mandatory or you cant sell LTC. The LTC course does count towards you main 30 hour illinois requirements.

In order to continue selling insurance in the state of Illinois you have to have all 30 hours completed by your renewal date. It is not recommended to take you continuing education course at that though. You will want to get them done at least a month in advance to give them time to notify the state of your compliance.

As far as you license renewal date is concerned. It is the license issue date biennially. That means if you got you license on january 31, 2008, you will have to renew by january 31st 2010. While this is easy to do, the last thing you want to do is miss this deadline, and not be able to sell insurance for several weeks.

You can either take your courses using independent study or in a classroom setting.The independent study courses have become popular because you can take them from your home online. It takes a fraction of the time,and usually costs a lot less. We recommend online courses.

If you have taken more than 30 hours, dont let your work go to waste. You can carry over up to 15 CE credit hours to the next reporting period in that state of Illinois. This can come in handy if you take a heavy course load for a specific reason but cant utilize all the credits.

You are not allowed to repeat a course in the state of Illinois for a period of three years. This is help people from taking the same courses and not expanding their insurance knowledge. Take advantage of this and expand to offer new products.

Many states require the final exam to be monitored. Illinois however does not. You can take the exam in the comfort of your own home as many times as you want until you pass. Additionally there are several agents who are exempt from CE course work. They inlude industrial heath, industrial life, travel cancellation, and travel health.

All states are different when it comes to what requirements need to be meet for continuing insurance education. Illinois has it pretty easy compared to many states. This article lets you know exactly what you need to do to fulfill you requirements



Monorail Track Lighting

david wolf asked:


All states are different when it comes to what requirements need to be meet for continuing insurance education. Illinois has it pretty easy compared to many states. This article lets you know exactly what you need to do to fulfill you requirements

To renew your insurance license you will have to complete a total of 30 hourse of ce credit every two years. There are dozens of courses to choos from that can fulfill this generic requirement. You can take course that count towards a selective requirement that count for this as well.

If you are planning on selling Long-Term-Care of LTC in the state of illinois you are going to have to complete a one-time six-hour state- specific requirement before you can legally sell LTC products.The course is relatively simple, but it is mandatory or you cant sell LTC. The LTC course does count towards you main 30 hour illinois requirements.

In order to continue selling insurance in the state of Illinois you have to have all 30 hours completed by your renewal date. It is not recommended to take you continuing education course at that though. You will want to get them done at least a month in advance to give them time to notify the state of your compliance.

As far as you license renewal date is concerned. It is the license issue date biennially. That means if you got you license on january 31, 2008, you will have to renew by january 31st 2010. While this is easy to do, the last thing you want to do is miss this deadline, and not be able to sell insurance for several weeks.

You can either take your courses using independent study or in a classroom setting.The independent study courses have become popular because you can take them from your home online. It takes a fraction of the time,and usually costs a lot less. We recommend online courses.

If you have taken more than 30 hours, dont let your work go to waste. You can carry over up to 15 CE credit hours to the next reporting period in that state of Illinois. This can come in handy if you take a heavy course load for a specific reason but cant utilize all the credits.

You are not allowed to repeat a course in the state of Illinois for a period of three years. This is help people from taking the same courses and not expanding their insurance knowledge. Take advantage of this and expand to offer new products.

Many states require the final exam to be monitored. Illinois however does not. You can take the exam in the comfort of your own home as many times as you want until you pass. Additionally there are several agents who are exempt from CE course work. They inlude industrial heath, industrial life, travel cancellation, and travel health.

All states are different when it comes to what requirements need to be meet for continuing insurance education. Illinois has it pretty easy compared to many states. This article lets you know exactly what you need to do to fulfill you requirements



Goodman Gas Furnace

edward hulse asked:


The Underwriting Process

Even though many insurance policies are issued on the basis of the application alone, it is still sound business to explain the underwriting process.  The explanation of the underwriting process should include three “checks and balances.

1.         Medical Information Bureau.  The MIB serves as a huge clearinghouse of medical information concerning applicants and helps to disclose cases where an applicant conceals or submits misleading medical information.

2.         Inspection Report.  This report provides details on an applicant’s lifestyle, finances, and exposure to abnormal hazards.  These reports are usually ordered on applicants who apply for large amounts of insurance. Friends neighbors and/or employers may be contacted.

3.         The Credit Report.  This report is ordered when there is reason to question the applicant’s ability to pay the premiums and to determine whether or not the applicant may be a poor credit risk.

In summary, the application process is important to all three parties involved; the applicant, the agent and the insurer.

All of the information on an insurance application has a direct bearing on whether the policy will be issued as requested, rejected, or amended.  An agent who knowingly fails to provide all the necessary information about a prospect is nor serving anyone’s best interests.

Consider, for example, the agent who “forgets” to disclose that the applicant is a dedicated bungi jumper.  The agent figures that if this information is submitted to the insurer, the company would rate the case making it unaffordable to the applicant.  A lost sale means lost commissions.  Thus, the information is not revealed and the coverage is issued as standard.  However, six months later, the insured dies while attempting another jump.  The insurer probably will contest or deny the claim, citing concealment.  Rather, than receiving the death benefit, the family receives a return of premium.  How ethical was the agent?  What service did he/she provide?

Precision and accuracy in completing the application are always needed.  This will protect both the applicant and the insurer, and protect the agent from any possible liability claim.

Maryland Insurance Continuing Education

Insurance Continuing Education



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