Real-Life Decision Making
Insurance is a great thing. It can cover your needs in a variety of emergency situations -- theft, accident, property damage, environmental disaster.
The problem is that insurance doesn't cover every imaginable circumstance.
"I always tell people that insurance is like Swiss cheese -- it has a lot of substance but it does have holes," says agent David Creighton Sr.
What would you do if the insurance you sold a client didn't cover all of those holes?
Imagine that you have recently sold some house insurance to a customer. Your client is a middle-aged single mother named Ms. Logan. She is a recent divorcee and doesn't have a lot of money "to throw around," as she puts it. She doesn't want to buy house insurance, but you explain the disastrous consequences of not doing so -- she could lose her home without it.
You convince her to purchase a standard policy that covers a number of different areas like fire, earthquakes and theft.
A few months later, Mrs. Logan calls you up to report a claim. Her gold watch, her most prized piece of jewelry, has gone missing. She can't remember the last time she wore it, or when she last saw it. She just knows that it has disappeared and she wants a new one.
"Lucky for me, I purchased that insurance policy!" she says.
"Is there any sign of a break in?" you ask her. She says no. "Did your purse get snatched while you were outside?" you inquire. She says no again.
It looks like she simply misplaced the watch. The problem is that the one area that her insurance does not cover is "mysterious disappearance." It seems that the great insurance policy you sold her isn't so great after all.
This puts you in a tough spot. Ms. Logan bought insurance from you to protect her property, and now that something has gone missing you aren't going to replace it! She is going to blame you for selling her the wrong insurance!
She may never buy from you again. She might even tell all her friends to avoid you. You might never sell another policy in this town. You might be finished.
Of course, you could file a claim. If you just twisted a few things around, her claim would be covered. It would be easy enough to do, but if you get caught you could be fired and your agent's license could be revoked.
What do you do?