Question

Jack and Gregg are both adjusters working claims in the same area after a large hailstorm. One day, Gregg tells Jack that he should inflate the settlements on his claims so he can make some extra money in commissions. Gregg says that he does it all the time, since things are so hectic after a storm that no one will notice if a little extra is added to each of the claims. What should Jack do in this situation?

A. Jack should take Gregg's advice and pad his own claim settlements
B. Jack has a duty to uphold the bond between adjusters and should keep this news to himself
C. Jack should investigate Gregg's past claims and look for ethical violations
D. Jack has a duty to report Gregg's ethical violations

Answer 1

Jack should report Gregg's unethical advice to inflate claim settlements to his superiors. Engaging in such fraudulent behavior is illegal and violates professional and ethical standards. Acting with integrity is Jack's prima facie duty, similar to the duty to help in an emergency as illustrated by the car accident example in FIGURE 9.6.

Step-by-step explanation:

Jack is faced with an ethical dilemma in the workplace and must make a decision based on professional integrity and ethical standards. The advice given by Gregg to inflate claim settlements is not only unethical but also illegal as it constitutes fraud. In an industry that relies on trust and accuracy, engaging in such behavior could harm customers, the employer, and the reputation of the profession as a whole.

The correct course of action for Jack would be to report Gregg's ethical violations to the appropriate authority within their organization. This is not only a professional obligation, but it also serves to protect the interests of all stakeholders, including policyholders who trust their insurance claims will be handled fairly and lawfully. While investigating Gregg's past claims could be part of an internal audit, Jack's immediate responsibility is to report the unethical behavior.

Jack may look to the example given in FIGURE 9.6 as a guideline for determining his prima facie duty. In similar fashion to the person in the car accident scenario who has a prima facie duty to help those injured, Jack has a prima facie duty to act with integrity and uphold the law within his professional capacity. This duty supersedes any misplaced loyalty or bond between adjusters when it comes to unethical practices.