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19.4 Code of Ethics

The National Association of Life Underwriters works for the best interest of policyowners and broadening opportunities for individual agents, promotes high ethical standards, and provides community service projects and continuing education for agents.

The mission of the Florida Association of Insurance and Financial Advisors (FAIFA) is to enhance the ability of members to provide financial security for their clients through appropriate legislative action, continuing education, professional skills development, and promotion of ethical conduct of agents and others engaged in insurance and related financial services.

FAIFA defines appropriate and inappropriate business behavior for life insurance agents as demonstrated by the association's Code of Ethics.

PREAMBLE: Those engaged in offering insurance and other related financial services occupy the unique position of liaison between the purchasers and the suppliers of insurance and closely related financial products. Inherent in this role is the combination of professional duty to the client and to the company, as well. Ethical balance is required to avoid any conflict between these two obligations. Therefore,

I Believe It To Be My Responsibility:

To hold my profession in high esteem and strive to enhance its prestige.

To fulfill the needs of my clients to the best of my ability.

To maintain my clients' confidences.

To render exemplary service to my clients and their beneficiaries.

To adhere to professional standards of conduct in helping my clients to protect insurable obligations and attain their financial security objectives.

To present accurately and honestly all facts essential to my clients' decisions.

To perfect my skills and increase my knowledge through continuing education.

To conduct my business in such a way that my example might help raise the professional standards of those in my profession.

To keep informed with respect to applicable laws and regulations and to observe them in the practice of my profession.

To cooperate with others whose services are constructively related to meeting the needs of my clients.

Misrepresentation is cited as an unethical, and thus illegal, practice in the Code of Ethics of the Florida Association of Insurance and Financial Advisors.

In this context, what constitutes "misrepresentation" by the agent?

A misrepresentation involves an untrue, incomplete or misleading statement. Thus, the Code of Ethics enumerates that no agent shall make, issue or circulate any estimate, circular or statement which misrepresents the terms of any policy issued or to be issued or the benefits thereof.

Also, an agent shall not make any misrepresentation as to the financial condition of any insurance company, or as to the legal reserve system upon which any life insurance company operates, or use any name or title of any policy which misrepresents the true nature thereof.

Finally, an agent shall not make, publish, disseminate, circulate or place before the public any advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of insurance or with respect to any person in the conduct of insurance business that is untrue, deceptive or misleading.

How does the Code of Ethics address "defamation?"

Knowingly making, publishing, disseminating or circulating, directly or indirectly, or aiding, abetting, or encouraging the making, publishing, disseminating or circulating of, any oral or written statement or pamphlet, circular, article or literature which is false or maliciously critical of or derogatory to any person and which is calculated to injure such person.