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Initiation of Action

A. Except as provided in paragraph C. of this section, all actions against a member of a Chapter shall be initiated by filing a written complaint with the Chapter Ethical Guidance Committee.

B. All actions against a member-at-large shall be initiated by filing a written complaint with the National Ethical Guidance and Professional Standards Committee.

C. In cases involving any member whose license to sell insurance or other financial products or services ha been suspended or revoked for cause, an action shall be initiated by filing written proof of such suspension or revocation with the National Ethical Guidance and Professional Standards Committee. The Committee shall then notify the member that his or her membership shall be suspended or revoked, as the committee shall determine; unless, within 90 days of the notice, the member requests a hearing before a National Tribunal.

Investigation of the Complaint.

A. The Ethical Guidance Committee shall send a copy of the complaint to the charged member and shall in a timely fashion determine whether the complaint made against the member alleges a violation of the Code of Ethics and is supported by sufficient information, which if assumed to be true, would constitute a violation of the Code of Ethics. If any member of the Committee has a business, financial, or familial relationship with the complainant or the member against whom the complaint was filed, that Committee member shall be replaced for these proceedings by the Board of Directors.

B. If the Committee determines that the complaint provides sufficient information to support a charge of ethical misconduct, then the Committee shall direct the Board of Directors to convene a Chapter Tribunal and shall so notify the charged member specifying the provisions of the Code the member is alleged to have violated.

C. If the Committee determines that there is insufficient information in the complaint to support a charge of ethical misconduct, the Commiittee shall so notify the complainant, the charged member and the Chapter Board of Directors.

D. The Chapter Tribunal shall consist of three or five Society members. If any member of the Tribunal selected to hear the case, has a business, financial, or familial relationship with either the complainant or the member against whom the complaint was filed, that Tribunal member shall be replaced for these proceedings by the Board of Directors.

E. The Chapter Tribunal shall set a date and place for the hearing and shall so notify the parties involved, the Chapter Board of Directors, and the American Society.

II. Hearing Procedures.

A. The Hearing shall be quasi-judicial in nature. The parties testifying shall be sworn; the member may not be required to testify against himself or herself; a verbatim transcript may be made; the case against the member shall be presented first; the member shall be given an opportunity to present his or her case and may be represented by counsel; written evidence shall be made part of the record; and a 'Legal Officer" may be utilized by the Chapter Tribunal to guide the course of the hearing.

B. The Chairman of the Ethical Guidance Committee, or his or her delegate, shall be responsible for presenting and moving the case against the member. He or she shall state the specific violations with which the member is being charged; present and interrogate witnesses and introduce into the record nonverbal testimony.

C. The purpose of the hearing is to determine if the member has violated the Society's Code of Ethics and decide upon an appropriate penalty for a member judged to have violated the Code of Ethics.

D. The Chapter Tribunal's decision shall be based solely upon matters introduced in the course of the hearing. The Tribunal may ask questions of any party testifying for purposes of clarification or amplification. Charges not supported by a preponderance of the evidence shall be resolved in favor of the member. The decision of the majority is the decision of the Tribunal.

IV. Effect of the Chapter Tribunal's Decision.

A. If the Tribunal decides by the majority vote that the member did not violate the Code of Ethics, this decision shall be binding upon the Chapter and the American Society and there shall be no subsequent rehearing of these charges. The member, the complainant, the Chapter Board of Directors and the American Society shall be advised of the Tribunal's decision, and a copy of the record and supporting materials shall be forwarded to the American Society.

B. If the Tribunal decides by a majority vote, that the member did violate the Code of Ethics, then at that same time and place, the Tribunal shall by majority vote, decide upon a penalty.

V. Penalties.

A. A Chapter Tribunal is empowered to impose these penalties: (i) a letter of private reprimand sent to the member; (ii) a notification of public censure sent to the member and published; or (iii) a recommendation for suspension or revocation of Chapter and National membership sent to the American Society.

B. The decision of a Chapter Tribunal to impose the penalty of reprimand shall be binding upon the Chapter and the American Society. A letter of reprimand shall be sent to the member and to the complainant. Notification of the reprimand and a copy of the hearing record shall be sent to the complainant and the American Society.

C. The decision of a Chapter Tribunal to impose the penalty of censure shall be binding upon the Chapter and the American Society.

1. The letter of censure shall be sent to the member and to the complainant. Copies of the letter of censure and the hearing record shall be sent to the American Society.
2. The act of censure shall be reported at the next business meeting of the Chapter and published in the Chapter Newsletter or other official Chapter communication. Such reporting and publication shall limit itself to a statement that a named CLU, a member of the named Chapter, has, as a result of a hearing held before the Chapter Tribunal, been censured by the Chapter for named violations of the Code of Ethics; that a letter of censure has been sent to the named member, and that notification of this Tribunal action has been given to the parties complaining and to the American Society.
3. Effective on the date of the decision of the Tribunal, a member who has received a letter of censure shall be barred from Chapter and National office or service for a period of one year.

D. A complainant, or a member who has received the penalty of Reprimand or Censure, may within thirty days from the date of the Chapter Tribunal's decision, file a written Request for Reconsideration with the Chapter Tribunal. The Request shall contain the reasons why the decision of the Tribunal was incorrect as the member or complainant interpret the Code of Ethics. The Tribunal shall determine whether to reconsider the case and announce its response to the Request within thirty days of receipt of the Request for Reconsideration.

VI. Actions Referred to the American Society.

A. If the Chapter Tribunal votes to recommend the penalty of suspension or revocation, then the Tribunal shall forward the recommendation and a record of the hearing to Society headquarters and notify the member and the National Tribunal neither suspends nor revokes membership, the Chapter Tribunal may, without further hearing, reprimand or censure the member.

E. A complainant, or a member who has received a penalty may, within thirty days from the date of the Tribunal's decision, file a written Request for Reconsideration with the Tribunal. The Request shall contain the reasons why the decision of the Tribunal was incorrect as the member or complainant interpret the Code of Ethics. The Tribunal shall determine whether to reconsider the case and announce its response to the Request within thirty days of receipt of the Request for Reconsideration.

F. With regard to actions brought against a member-at-large under Section I.B. of these procedures, the National Tribunal shall follow the procedures outlined in Sections II through V of these Procedures, as applicable.

VII. Penalties Imposed by the National Tribunal.
A. Suspension of Membership. A letter of suspension shall be sent to the member from the President of the Society. Notification of the suspension shall be sent to the complainant and the Chapter referring the action. Upon expiration of the suspension period, the suspended member shall be eligible to apply for membership.

B. Revocation of Membership. A letter of revocation shall be sent to the member from the President of the Society. Notification of the revocation shall be sent to the complainant and the Chapter referring the action. The act of revocation shall be reported at the next meeting of the Society's Board of Directors.

C. Reprimand or Censure. These penalties may be imposed upon members-at-large by a National Tribunal in the same manner as prescribed for Chapter Tribunals pursuant to Section V herein.'

D. From time to time there shall be Society-wide publication of ethical actions taken by Chapter and National Tribunals. This will be done for educational purposes only and shall not identify the members against whom a penalty was imposed.

 

Code of Ethics of The American Society of Chartered Life Underwriters.

Subscribed to by all members of the American Society of Chartered Life Underwriters.

Because it is the desire of the members of the American Society of Chartered Life Underwriters to serve the insuring public in accordance with the purposes set forth in the Society's Bylaws;

And because members recognize and accept collective and individual responsibility for professional conduct in their relationships with the public, clients, fellow underwriters and companies; Therefore, the members pledge themselves to the Code of Ethics, consisting of Guides to Professional Conduct and Rules of Professional Conduct, as set forth below:

Guides to Professional Conduct

1. I shall, in the light of all the circumstances surrounding my client, which I shall make every conscientious effort to ascertain and to understand, give him that service which, had I been in the same circumstances, I would have applied to myself.*

2. 1 shall place the welfare and interests of my clients above my own interests.

3. 1 shall render continuing service and counsel to my clients.

4. 1 shall continue to study and to improve my technical competency.

5. I shall keep abreast of changing conditions and legislation which may affect the financial plans of the insuring public and keep my clients informed of such changes as relate to them.

6. 1 shall accord the same courtesy and consideration to others engaged in related professions as I would wish to receive from them.

*The professional pledge of Chartered Life Underwriters.

Rules of Professional Conduct

1. A member shall obey all applicable laws governing life and

health insurance.

2. A member shall conduct his personal and business affairs in such a manner as to avoid discrediting his reputation and impairing the public regard for life underwriting as a profession.

3. A member shall respect the confidential nature of the relationship existing between him,-,elf and his client.

4. A member shall respect the agent/principal relationship existing between himself and the company he represents.

5. A member shall avoid impairing the reputation or practice of another life underwriter.

6. Advertising the C L U designation or its significance shall be done only in a manner approved by the American Society of Chartered Life Underwriters and The American College.