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practice insurance does not mean that a professional can use the same when he conducts an act of negligence; the insurance is simply for protecting him against some malpractice committed while being ordinarily prudent in his affairs of conducting his activities, yet causing some damage to the patient, in an unknowingly negligent manner. It thus should not ideally lessen the care that is taken by a professional in his work.
29. The role of the insurance industry is to reiterate the fact that despite any professional possessing liability insurance, he must not fall short of being competent or prudent while conducting his daily affairs. The insurance should not be treated like a ticket to being negligent, but merely used during a time of crisis.
30. Churning amounts to a breach of securities law; when a broker conducts an excessive transaction and sells the securities that have increased in their value while keeping the securities that have lost out on their value, misrepresentation or fraud may be committed by the broker and the company that he represents. Thus, the line should be drawn when one steps onto fraudulent methods to earn a higher commission.
31. It is ethical for an insurance company to base the commission of an agent on the basis of a buyer’s needs because at the end of the company is carrying out a business transaction and every agent acting on behalf of the company should be entitled to receive that which he is able to get; regardless of the buyer’s needs, the agent will only be entitled to the amount of commission equal to that of the policy that he has been able to sell to the client.
32. It is important and pertinent for a state to respect and enforce the judgments that are awarded by courts in other states as well as the statutes and case laws of other states because when a certain judgment has been passed for a particular case in a state, it may act as a precedent for a similar case taking place elsewhere. The state thus must foster ...Show more
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Summary

The license of professionals helps them to guard against malpractices in the sense that it helps to mitigate the gravity of the situation. In order to have the desired effect, the license must be clearly documented, should be in compliance with policies and procedures, and…
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