Code of Ethics

  1. Always place the best interest of your clients above your own direct or indirect interests.
    1. Conduct a thorough and appropriate fact-finding.
    2. Strive to achieve the client’s personal and financial goals.
    3. Sell only the product and features best suited to your client’s needs.
    4. Do not select the product with an eye to the commission earned.
    5. Sell no more premium than the client can be reasonably expected to be able to pay based on a complete fact finding.
    6. When the product is sold as part of an overall business or personal plan, persist beyond the sale to assure implementation and completion of the plan
  2. Maintain the highest standards of professional competence and give the best possible advice to clients by seeking to maintain and improve professional knowledge, skills and competence.
    1. Be mindful that quality is a process, not an achievement.
    2. Pursue continuing education both formally and through private study.
    3. Know all of the features of the products you sell.
    4. Comment on competitor’s products only if well-versed in those products.
    5. Learn to listen and communicate effectively.
    6. Keep your promises. Deliver what you promise in a timely manner.
    7. Prepare applications and new account forms honestly and completely.
    8. Be aware of industry issues, trends and standards.
    9. Be aware of pending legislation and its possible effects on the products you sell and your clients’ financial plans.
    10. Be aware of tax and legal issues affecting the products you sell.
  3. Hold in strictest confidence, and consider as privileged, all business and personal information pertaining to your clients’ affairs.
    1. Never reveal a client’s name or a personal situation without permission from the client.
    2. Protect client files and client records with regard to confidentiality.
    3. Ensure that your staff respect client confidentiality.
  4. Make full and adequate disclosure of all facts necessary to enable clients to make informed decisions.
    1. Complete a thorough and appropriate fact-finding.
    2. When making recommendations, explain the reasons for the recommendations and avoid the extremes of exaggeration or oversimplification.
    3. Provide prospects with enough facts about the products available to them so they can make an informed decision. Clients must always understand what they are buying and why. Simple disclosure is not enough.
    4. Make every effort to determine the prospect’s risk tolerance and tailor your recommendations accordingly.
    5. Be sure the prospect understands the potential for loss as well as the potential for gain in any product sold or strategy employed.
    6. Disclose and explain the footnotes and explanations on all illustration material. Only use sales materials that are understandable, not misleading and meet compliance regulations.
    7. Keep your client informed of changing circumstances that bear upon the product or plan.
  5. Maintain personal conduct that will reflect favorably on the life insurance industry and the LBA.
    1. Speak only the truth regarding persons, products or companies and if you can’t say something positive, say nothing.
    2. Avoid company and advisor bashing.
    3. Do not engage in illegal or unethical behavior inside or outside of the business practice.
    4. Avoid the appearance of impropriety.
    5. Avoid adverse publicity.
    6. Do not attack a person’s character.
  6. Determine that any replacement of an insurance or financial product must be beneficial for the client.
    1. Conduct a thorough and appropriate fact-finding.
    2. Be mindful that “beneficial” is more than equal.
    3. Make a complete comparison between the “to-be-replaced” product and the proposed product.
    4. Be aware of and adequately disclose the existence and effect of surrender charges and sales loads, including contingent deferred and back-end loads.
    5. Compare guarantees with the client.
    6. Never cancel the original policy until the new policy is issued and accepted.
    7. Inform the client of the significance of the suicide and the incontestability clauses.
    8. Always consider the client’s need for additional as opposed to replacement coverage.
    9. Consider all alternatives to policy replacement.
    10. Central to ethical replacement is thorough disclosure and client understanding of the nature of the transaction and the reasons for it.
      Comply scrupulously with disclosure and filing requirements of all jurisdictions.
    11. Know and comply with the laws and regulations of all applicable jurisdictions regarding replacement.
    12. Consider the effect of replacement on the clients’ overall business or personal financial and estate plan.
  7. Abide by and conform to all provisions of the laws and regulations in the jurisdictions in which you do business.
    1. Know the regulation in all the jurisdictions in which you do business.
    2. Maintain proper licensing.
    3. Sell only approved products and have written confirmation of such approval. Verbal approval will
    4. not protect you if it is inaccurate.
    5. Do not sign anyone else’s name or initials.
    6. Sign and date applications honestly and accurately.
    7. Honour contractual and moral obligations with all insurance and financial companies.
    8. Keep abreast of changes to the laws and regulations of the various jurisdictions in which you do business.

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