of Ethics Online Collection: None
Code of Ethics
To competently advise and serve the client. . .
Guide 1. 1:
A member shall provide advice and service which are in the client's best interest.
Interpretive Comment.
A. A member possessing a specific body of knowledge which is not possessed by the general public has an obligation to use that knowledge for the benefit of the client and to avoid taking advantage of that knowledge to the detriment of the client.
B. In a conflict of interest situation the interest of the client must be paramount.
C. The member must make a conscientious effort to ascertain and to understand all relevant circumstances surrounding the client.
D. A member is to accord due courtesy and consideration to those engaged in related professions who are also serving the client.
E. A member is to give due regard to any agent principal relationship which may exist between the member and such companies as he may represent.
Guide 1.2:
A member shall respect the confidential relationship existing between client and member.
Interpretive Comment.
A. Competent advice and service may necessitate the client sharing personal and confidential information with the member. Such information is to be held in confidence by the member unless released from the obligation by the client.
Guide 1.3:
A member shall continue his education throughout his professional life.
Interpretive Comment.
A. To advise and serve competently, a member must continue to maintain and to improve his professional abilities.
B. Continuing Education includes both the member adding to his knowledge of the practice of his profession; and, the member keeping abreast of changing economic and legislative conditions which may affect the financial plans of the insuring public.
C. A member may continue his education through formal or informal programs of study or through other professional experiences.
Guide 1.4:
A member shall render continuing advice and service.
Interpretive Comment.
A. Advice and service, to be competent, must be ongoing as the client's circumstances change and as these changes are made known to the member.
B. A client with whom a member has an active professional relationship is to be informed of economic and legislative changes which relate to the client-member relationship.
To enhance the public regard for professional designations and allied professional degrees held by members ...
Guide 2. 1:
A member shall obey all laws governing his business or professional activities.
Interpretive Comment.
A. Business activities are non-personal activities carried on outside the life insurance community; professional activities are non-personal activities carried on within the life insurance community.
B. A member has a legal obligation to obey all laws applicable to his business and professional activities. The placement of this Guide within the Code raises this obligation to the level of an ethical obligation.
Guide 2.2:
A member shall avoid activities which detract from the integrity and professionalism of the Chartered Life Underwriter designation, the Chartered Financial Consultant designation, or any other allied professional degree or designation held by members.
Interpretive Comment.
A. Personal, business, and professional activities are encompassed within the scope of this Guide.
B. Activities which could present a violation of this Guide might include:
(1) A member's failure to obey a law unrelated to the member's business or professional activities.
(2) A member impairing the reputation of another practitioner.
(3) A member unfairly competing with another practitioner.
(4) Actions which result in the member discrediting his own reputation.
(5) A member discrediting life underwriting as a profession, the institution of life insurance or the American Society of CLU & CHFC.
(6) A member advertising the Chartered Life Underwriter or Chartered Financial Consultant designation or membership in the American Society in an undignified manner, or in a manner prohibited by the Bylaws of the American Society.
Guide 2.3:
A member shall encourage others to attain the Chartered Life Underwriter and/or the Chartered Financial Consultant designations.
Interpretive Comment.
A. Enhancement of the public regard for the CLU and CHFC designations depends upon a continuing increase in the number of holders of the designations who are available to advise and serve the public.
B. Encouraging others who might be qualified to enter into a practice is one hallmark of a professional.
Guide 2.4:
A member shall avoid using the Chartered Life Underwriter or Chartered Financial Consultant designation in a false or misleading manner.
Interpretive Comment.
A. The CLU and CHFC designations are granted by the American College to specified individuals. Acts which directly or indirectly extend the member's personal designation to others would present a violation of this Guide.
B. Chartered Life Underwriter (CLU) or Chartered Financial Consultant (CHFC) may not be used in a name of a business in a manner which would reasonably lead others to conclude that someone other than the named member held the designation. Example:
(1) John Jones, CLU & Associates is permissible.
(2) John Jones & Associates, Chartered Financial Consultants is not permissible.
