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Why ethics matter.

The American Institute for CPCU was established to inspire the public to recognize the property liability business as a profession, and that lofty aspiration has guided the CPCU movement since its inception in the early 1940s.

The CPCU designation was established in 1942 under the leadership of Dr. Harry J. Loman.

When ethics became an integral part of obtaining and maintaining the CPCU designation through the specialized CPCU curriculum, Dr. Ronald C. Horn fixed seven characteristics of a true profession:

* A commitment to high ethical standards.

* A prevailing attitude of altruism.

* Mandatory educational preparation and training.

* Mandatory continuing education.

* A formal association or society.

* Independence; and with reservations.

* Public recognition as a profession.

Dr. Horn defined altruism as "unselfish concern for the welfare of others." The genesis of the CPCU designation includes not only a strong belief in ethical actions of people associated with the insurance business, but also a commitment to always place the interests of others before personal interests.

The CPCU Society was established in 1944, two years after the introduction of the CPCU designation. The Society, while working closely with the Institute, is an independent body of members who voluntarily join after receiving the CPCU designation. Ethics and ethical behavior have consistently been emphasized by the Society. In fact, one of the first committees established by the Society was its ethics committee, in 1945. The Society has a creed for its members that reflects altruism. It reads, in part, "As a member of the CPCU Society, I will use my full knowledge and ability to perform my duties to my client or principal and place their interests above my own." The CPCU designation program has always included mandatory educational preparation and training. Two years of experience are required before the CPCU designation will be awarded. This mandatory preparation is under constant review by the Institute and the number of examinations required has varied from as few as five in the early years to as many as 10 beginning in the mid-1970s. Currently, eight exams are required.

Mandatory continuing education is not one of the requirements to maintain the CPCU designation. However, in the evolution of the CPCU designation, the Society established the voluntary Continuing Professional Development program, jointly administered with the Institute. The concept was introduced by the Society in 1982 as a program designed for "self improvement and not window dressing."

To meet the criteria for CPD qualification, a CPCU certifies that he or she has earned at least 60 qualifying points each two years. Both organizations strongly support the voluntary program and encourage all CPCUs to participate.

Both the Institute and the Society have engaged in extensive efforts to highlight the CPCU designation as the premier property and casualty designation. This effort includes a charge to all designation holders and members of the Society to "spread the gospel" of ethical behavior.

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Title Annotation:Agent/Broker: Insurance Ethics; Chartered Property Casualty Underwriter
Comment:Why ethics matter.(Agent/Broker: Insurance Ethics)(Chartered Property Casualty Underwriter )
Publication:Best's Review
Geographic Code:1USA
Date:Jan 1, 2010
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