"... and place their interests above my own“ "... and place their interests above my own“ Ethics Day 2006 Kelley Insurance Center – Drake University Des.

". . . and place their ". . . and place their interests above my interests above my own“own“

Ethics Day 2006 Kelley Insurance Center – Drake UniversityDes Moines, Iowa

Larry L. Klein, CPCUSecretary-Treasurer

CPCU Society

As a Chartered Property Casualty Underwriter. . .

I shall strive at all times to live by the highest standards of professional conduct. I shall strive to ascertain and understand the needs of others and place their interests above my own.

And I shall strive to maintain and uphold a standard of honor and integrity that will reflect credit on my profession and on the CPCU designation.

When do you “place their interests above `your’ own?”

One should always play fairly One should always play fairly when one has the winning cards.when one has the winning cards.

Oscar Wilde, Irish dramatist, novelist & poetOscar Wilde, Irish dramatist, novelist & poet

Good leadership means doing the Good leadership means doing the right thing when no one’s right thing when no one’s watching.watching.

Carly Fiorina, former CEO, Hewlett PackardCarly Fiorina, former CEO, Hewlett Packard

CPCU Society BylawsCPCU Society Bylaws

Five CommitteesFive Committees– Executive CommitteeExecutive Committee– Nominating CommitteeNominating Committee– Budget & Finance CommitteeBudget & Finance Committee– Diversity CommitteeDiversity Committee– Ethics CommitteeEthics Committee

CPCU Society Ethics CodeCPCU Society Ethics Code

Specified Unethical PracticesSpecified Unethical Practices– Violate any law or regulation Violate any law or regulation – Willfully misrepresent or conceal a material Willfully misrepresent or conceal a material

factfact– Breach confidential relationshipBreach confidential relationship– Willfully misrepresent the CPCU designationWillfully misrepresent the CPCU designation– Represent the Society or a chapter without Represent the Society or a chapter without

authorizationauthorization– Aid or abet any unethical practiceAid or abet any unethical practice– Violate a presidential or Board cease and desistViolate a presidential or Board cease and desist

CPCU Society Ethics CodeCPCU Society Ethics Code

Unspecified Unethical Practices– Engage in practices which tend to

discredit the Society or the business of insurance and risk management

– Fail to use due diligence– Fail to use full knowledge and ability

CPCU Society Board Policy CPCU Society Board Policy StatementStatement

Ethics Violation Procedures– Inquiry – the president appoints a committee of

inquiry to determine whether there is reasonable basis to believe a violation has taken place.

– If there is a reasonable basis the president shall appoint a conference panel. The panel shall determine whether the conduct constitutes unethical conduct by conducting a hearing which shall include provision for the member to present witnesses, question witnesses & present written evidence.

– In the case of a finding of specified unethical conduct, the panel shall submit its recommendation for action by the Board of Governors.

AICPCU AICPCU Code of Professional Code of Professional EthicsEthics Cannons and Rules of the Code of

Professional Ethics– Cannon 1 – CPCUs should endeavor at all

times to place the public interest above their own.

– Cannon 2 – CPCUs should seek continually to maintain and improve their professional knowledge, skills, and competence.

– Cannon 3 – CPCUs should obey all laws and regulations, and should avoid any conduct or activity which would cause unjust harm to others.

AICPCU AICPCU Code of Professional Code of Professional EthicsEthics Cannons and Rules of the Code of

Professional Ethics– Cannon 4 – CPCUs should be diligent in the

performance of their occupational duties and should continually strive to improve the functioning of the insurance mechanism.

– Cannon 5 – CPCUs should assist in maintaining and raising professional standards in the insurance business.

– Cannon 6 – CPCUs should strive to establish and maintain dignified and honorable relationships with those whom they serve, with fellow insurance professionals, and with members of other professions.

AICPCU AICPCU Code of Professional Code of Professional EthicsEthics Cannons and Rules of the Code of

Professional Ethics– Cannon 7 – CPCUs should assist in improving

the public understanding of insurance and risk management.

– Cannon 8 – CPCUs should honor the integrity of the CPCU designation and respect the limitations placed on its use.

– Cannon 9 – CPCUs should assist in maintaining the integrity of the Code of Professional Ethics.

The Ethics of American Youth The Ethics of American Youth

Josephson Institute of EthicsJosephson Institute of Ethics

2004 Report CardSurvey of nearly 25,000 high school

students– Nearly two-thirds cheated on exams– More than one in four stole from a

store within the past 12 months– 40% admit they “sometimes lie to

save money”

The Ethics of American Youth The Ethics of American Youth

Josephson Institute of EthicsJosephson Institute of Ethics 2004 Report Card

Survey of nearly 25,000 high school students

– Nearly three-quarters rated their own ethics higher than those of their peers

– 98% said honesty, ethics and good character are very important

– 92% said they were satisfied with their ethics

American Institute ofAmerican Institute ofCertified Professional Certified Professional AccountantsAccountants

Code of Professional Conduct– The Principles call for an unswerving commitment to

honorable behavior, even at the sacrifice of personal advantage.

– In carrying out their responsibilities as professionals, members should exercise sensitive professional and moral judgments in all their activities.

– Members should accept the obligation to act in a way thatwill serve the public interest, honor the public trust, anddemonstrate commitment to professionalism.

– To maintain and broaden public confidence, members should perform all professional responsibilities with the highest sense of integrity.

American Institute of American Institute of Certified Professional Certified Professional AccountantsAccountants

Code of Professional Conduct– A member should maintain objectivity and be free

of conflicts of interest in discharging professional responsibilities. A member in public practice should be independent in fact and appearance when providing auditing and other attestation services.

– A member should observe the profession's technical and ethical standards, strive continually to improve competence and the quality of services, and discharge professional responsibility to the best of the member's ability.

– A member in public practice should observe the Principles of the Code of Professional Conduct in determining the scope and nature of services to be provided.

Sarbanes-Oxley Act of 2002Sarbanes-Oxley Act of 2002

Section 406– DEFINITION- In this section, the term ‘code

of ethics’ means such standards as are reasonably necessary to promote--

(1) honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

(2) full, fair, accurate, timely, and understandable disclosure in the periodic reports required to be filed by the issuer; and

(3) compliance with applicable governmental rules and regulations.

Iowa Bar Standards for Professional Conduct

Client Lawyer Relationship Competent representation to a client Abide by a client’s decisions concerning the

objectives of representation Representation of a client does not

constitute an endorsement of the client’s views or activities.

Confidentiality of information Conflict of interest Duties to former clients

Iowa Bar Standards for Professional Conduct

Lawyer’s Duties to Other Counsel1. We will practice our profession with a continuing

awareness that our role is to advance the legitimate interests of our clients.

2. We will not, even when called upon by a client to do so, abuse or indulge in offensive conduct directed to other counsel, parties or witnesses.

3.3. We will not encourage or knowingly authorize any person We will not encourage or knowingly authorize any person under our control to engage in conduct that would be under our control to engage in conduct that would be improper if we were to engage in such conduct.improper if we were to engage in such conduct.

4.4. We will not, absent good cause, attribute bad motives or We will not, absent good cause, attribute bad motives or improper conduct to other counsel or bring the improper conduct to other counsel or bring the profession into disrepute by unfounded accusations of profession into disrepute by unfounded accusations of impropriety.impropriety.

4 of 32 Duties to Other Counsel 4 of 32 Duties to Other Counsel

Iowa Bar Standards for Professional Conduct

Lawyers’ Duties to the Court1. We will speak and write civilly and respectfully in all

communications with the court. 2. We will be punctual and prepared for all court appearances so

that all hearings, conferences and trials may commence on time; if delayed, we will notify the court and counsel, if possible.

3. We will be considerate of the time constraints and pressures on the court and court staff inherent in their efforts to administer justice.

4. We will not engage in any conduct that brings disorder or disruption to the courtroom.

5. We will not knowingly misrepresent, mischaracterize, misquote or miscite facts or authorities in any oral or written communication to the court.

5 of 8 Duties to the Court5 of 8 Duties to the Court

Universal Professional Standards

Standard CPCU CPA Attorney

Violate law Yes Yes Yes

Misrepresent/conceal

Yes Yes Yes

Confidentiality Yes Yes Yes

Misrepresent CPCU

Yes n/a n/a

Aid/abet others Yes Yes Yes

Defy cease & desist

Yes Yes Yes

Discredit profession

Yes Yes Yes

Due diligence Yes Yes Yes

Use full knowledge Yes Yes Yes

Place their interests…

Yes Yes Yes

Other Professional Standards

Independence in fact Independence in appearance Conflicts of interest Disclosure of fees Permissible fee arrangements Duties to former clients Memorialize in writing Safekeeping property Ownership/custody of work papers Client with diminished capacity

Ethical behavior in the real Ethical behavior in the real worldworld

Find the hat Should you answer the question that

was asked, or answer the question that was intended?

Whistleblowers and “I will not lie cheat or steal nor tolerate those who do.”

The Golden Rule: “Do unto others as you would have others

do unto you.”

and why CPCUs prefer the message of Carly Fiorina…

The only thing to do with good The only thing to do with good advice is pass it on. It is never advice is pass it on. It is never any use to oneself. any use to oneself. Oscar Wilde, Irish dramatist, novelist & poetOscar Wilde, Irish dramatist, novelist & poet