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Producers ponder: what is ethical?

Article Excerpt
A producer is always a middleman and, like Rodney Dangerfield, seems to get no respect. However, a professional producer adds real value to the insurance transaction, and that was the focus of this two-part question: "What are the ethical duties of a professional producer in the procurement of insurance? How can these responsibilities be communicated to the client?"

A universal answer to the first question centered on the Golden Rule. Producers should do for the client what they would want done for themselves. "That should answer the first question," wrote a Kentucky producer.

Another common thread, as expressed by a former risk manager turned producer, was the theme of almost all ethical codes: "Always keep the client's interests above your own."

A third theme was to use "good practices" routinely in procuring insurance. A Georgia producer noted: "Good practices are also both ethical practices and the responsibility of the professional producer."

The final general guidance offered by respondents was that legal requirements were foundations on which to build ethical practices; meeting any legal requirements was not enough. For example, an association executive responded, "Ethical responsibilities of producers greatly exceed any legal responsibilities."

A risk manager for state government identified those...