The law tells you what you must not do. Ethics asks what you should do. A lawful act can still be unethical, because the law sets a floor, not a ceiling.
The CDI outline lists nine ethical mandates:
Place the customer's interest first.
Know your job and keep increasing your competence.
Identify the customer's needs and recommend products and services that meet them.
Represent products and services accurately and truthfully.
Avoid jargon; use layperson's language when possible.
Stay in touch with customers and conduct periodic coverage reviews.
Keep customer information confidential and protect its privacy with physical and electronic safeguards.
Keep informed of and obey all insurance laws and regulations.
Avoid unfair or inaccurate remarks about the competition.
The Insurance Code and the regulations identify many unethical or illegal practices, but they are NOT a complete guide to ethical behavior. Section 785 shows how broadly the Code can speak: all insurers, brokers, agents and others engaged in the transaction of insurance owe a prospective insured aged 65 or older a duty of honesty, good faith and fair dealing. Even so, no statute spells out every choice a licensee will face.
Common ethical dilemmas:
Commission vs. need: one option pays a higher commission but does not meet the client's need. Recommend the option that meets the need; disclosing the higher commission does not cure a recommendation that leaves the need unmet.
Loyalty vs. confidentiality: a friend asks about a client's accident record. Decline to share it, even partly, even with a promise of secrecy, and even through a coworker.
Competition: telling prospects, without facts, that a rival pays claims slowly breaks the mandate against unfair remarks.