CASE 1.

1. There are various unethical business practices that the insurance agents
committed. First is the over-persuasion. She offer the insurance to her college
classmate without informing Lindsay beforehand regarding her agenda. She
encourage her about the insurance without considering the interest of Lindsay.
Also, Charmaine has presented the VUL to Lindsay without undergoing queries.
The next unethical act committed is the indirect misrepresentation. Charmaine
deliberately withhold some information about the VUL to Lindsay. She did not
explain it thoroughly
2. Know your prospective client first. Do some research regarding the said client.
Find out what is his/her interests and align it in the financial product that you are
going to offer. You must also identify the financial goal of the client whether
she/he has an emergency fund. Make sure that the client is fully aware regarding
the financial product. Disclose what are the information that client are necessary
to know. Always priority and consider the interest of the buyer. Persuade the
potential client to accept the offer in ethical manner.
3. It is better to surrender the policy. Although there is potential loss on her part it is
better to surrender it. Since it will more costly for her if she continue the said
insurance. It is better if she will invest in a commercial banks since it also offers
free life insurance. There is also a chance that Lindsay may identify better
investment strategies to increase her saving better than VUL.