Ethics Case #3 - The Downsized Friend

[scott]

You are the loss control specialist for an insurance company. ABC Manufacturing has been your account for many years. You have become friends with one of the mid-managers. You and your wife have exchanged dinners with the manager and his wife. You regularly play golf with the manager.

In a meeting with the owner of ABC, you learn that there is going to be a lay-off. The division that your friend works in will be eliminated. All division employees will be terminated including your friend. The announcement will be made in three weeks. Your friend does not know what's coming.

Do you tell your friend what you know? Why or why not?

[independent guy]

I would assume that the knowledge is privileged information since the manager doesn't yet know about it. Thus, you really can't tell your friend...

[loudmouth]

I wouldn't care if it was you brother, sister or wife. Your client presented to you information that was private and privileged you cannot mention/share this information.

As an Agent there are many sources of information that I am presented with such a bankruptcy, intent to sale a business by client, business financial statements, business credit history, purchase price..etc. All of this is privileged information and should never be shared. If I was the company that you insured and found out that you shared this information I would not hesitate sue you. You are causing harm to my business operation when you share such information.

[AlstonCPCU]

No. Do not tell your acquaintance at the company. You are a professional.

[kevinraz]

Scott, I'd say that the boss of ABC is a weasel for telling someone outside of the company what's going on before it happens.

If ABC was a public company this could lead to big problems.

As for tell/don't tell: don't tell for several reasons. First, confidentiality. Second, it might not happen or affect your buddy. Third, if you can't keep work info private it won't be long before you run out of clients.

[darnovak]

First, I would assume nothing. Privileged info? Maybe, maybe not.
Somebody would sue because info was told to someone? Sue for what? What economic damages would be suffered? An employee leaves just prior to getting the axe. He saves the employer time, space, & money. Get realistic people! Forget all the posturing and worrying. You don't read enough books and your minds have turned to jelly. Think. Buy a $.39 postage paid envelope at a remote post office. Find an old typewriter somewhere (or a public computer with a printer) and create a letter: " Psssst, A high ranking ABC official was recently heard to say that your department is being eliminated. Heads up." Wearing gloves, insert the letter in the envelope, type your friend's name and address on the envelope, seal it with water (not your own saliva) and mail it somewhere away from your home and work locations. This is a no-brainer. I charge $100 per hour plus travel and lodging for consulting in these types of situations. Now my lily-white clients can sleep at night for fear they might have done a friend a favor. No good deed goes unpunished! So get someone who isn't afraid of "the man" to do your good deeds for you. But it's gonna cost ya a bundle, bucko! regards, Dar Novak

[mhutch69]

Scott,

as much as these posts are amusing, your "fee" based insurance practice obviously leaves you with significantly too much time on your hands.

:D

[92builder]

There's no way in the world you could ever justify telling your friend.

[GreyBoomer]

mhutch69
Insurance Journal Addict


Joined: 30 Nov 2005
Posts: 37

Posted: Wed Feb 14, 2007 10:22 pm Post subject: Scott has too much free time!

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Scott,

as much as these posts are amusing, your "fee" based insurance practice obviously leaves you with significantly too much time on your hands.




Well said Mhutch69; I am thinking Scott distills these into somekind of a report he then sells to his clients.

[Porter]

I would take the friend out for a beer and tell him. Like in the movie "Office Space". Then I would tell the Bobs to take a hike. Hopefully the friend can sell insurance I need a personal lines producer.

[loudmouth]

I would sue....you telling the employee of the layoff may cause employees to quit, not just the one friend. Lets face the facts if one person in the company knows then all will soon find out. This of least concern..yes I would like employees to quit as well but, we all know human nature. Most will walk away but there are always those that will want to stick it to you before they leave.

Just pretend that you are a lawyer, doctor, or psychiatrist...when it comes down to it you're a professional...you are obligated not to repeat any information period.

[darnovak]

Hey Scott, You really get them going! I haven't had this much good reading since National Lampoon stopped publishing their parodies. These diatribes are priceless. I am 57 and acknowledging my 36th year in the P&C business and some of the postings at these forums are a scream. Please, keep the bait fresh. I love this business. Ciao for now Dar Novak

[houstonagent]

Dar Novak

The whole letter thing is brilliant!!! I don't think I would have ever thought of that one. Good one, had me laughing for a min!

I dont think I would say anything,thats just me though.

[darnovak]

Hey houstonagent, there are some very good posters at these forums, but you have to read a lot of the boring and "duh" stuff to find the good ones.
regards, Dar Novak

[houstonagent]

thanks