What is the purpose of an insurance code of conduct?

The purpose of an insurance code of conduct is to ensure that insurance companies and agents in Illinois act ethically and in the best interests of their consumers. This code of conduct is enforced by the Illinois Department of Insurance and outlines professional responsibilities that insurers, and their agents, are expected to adhere to. The code of conduct sets out specific principles and standards that the insurer and its agents must follow related to core ethical values such as integrity, fairness, trustworthiness, respect for the customer, and a commitment to serve the public. The code requires insurers and agents to treat customers fairly, with honesty and loyalty, as well as provide complete and accurate information. Insurance companies and agents are also expected to maintain a high degree of professional competence and to keep up-to-date with public policies and regulations related to the practice of insurance. This includes the disclosure of material information, the avoidance of conflicts of interest, and the avoidance of unfair practices when handling customer’s claims and settling disputes. The insurance code of conduct also provides for sanctions against violators, such as a fine or suspension of license. By setting out these ethical standards, the code of conduct helps to ensure that the insurance industry in Illinois is well regulated and that insurers and agents act responsibly and in the best interests of their customers.

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What is the purpose of an insurance code of conduct?

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