ACTIVITY READING: WHAT SHOULD WE DO? You are a broker at Best Broking Ltd. Fred and Wilma have been longtime clients with your company and you have known them, as clients, for several years. Fred and Wilma own some valuable artwork. The artwork limit on their homeowner's policy is insufficient to cover the full value of the artwork. A couple of years ago, you recommended that they obtain specific insurance policy for the artwork. This specific policy gives them additional coverage, above what their homeowner's policy would cover, and helps ensure that the artwork is fully protected from loss. Wilma feels the cost of this extra insurance is quite high and they could use the money she spends on premium for something else. Fred believes the extra coverage provides valuable protection for them. After some discussion, Fred and Wilma agreed to purchase the coverage and they have had the policy on the artwork since then. Late last Friday afternoon, Wilma sent you an email requesting that the specific policy be cancelled. You called Wilma to discuss and she confided that Fred does not agree with cancelling the policy and isn't aware that she sent the email, but as she is one of the policyholders, she insists that she wanted the policy cancelled. You advised Wilma that cancelling the policy is not a good idea and explained the reasons that having the specific policy is very important and the possible consequences of cancelling. Wilma listened to you, but insisted that the policy should be cancelled. Finally, you accept her decision regarding the cancellation and tell her you will process the cancellation as per her email. You explain that it is now rather late and you will complete the cancellation documents, but it will be Monday before you can send them to the insurer. It's now Monday. You have just sat down and pulled out Wilma's cancellation to send it to the insurer when your phone rings. It's Wilma. Over the weekend, the artwork was severely damaged when a pipe burst. Wilma tells you that she needs you to pretend she didn't cancel the policy and file a claim for the damage. She didn't tell Fred that she had cancelled the policy and the damage to the artwork is substantial and would cost them a significant amount of money. She asks you repeatedly to rip up the cancellation and to just file the claim, as if the policy was still in effect. You are now presented with a difficult decision. You have the cancellation on you desk and know that it should be sent to the insurer. However, Fred and Wilma have been long time good clients and have several policies with your office. You are sympathetic and understand that the damage would cause them financial hardship if they did not insurance coverage. You also know that you have clear instructions from the client to cancel the insurance, you are an agent of the insurer and that the insurer should be notified that this was done on Friday. What are at least two options that you have to respond to this situation? What is the ethical issue that you face? What obligation do you have to the client? What obligation do you have to the insurer that you represent? For each of the options that you provided in part identify the impact selecting that option could have on the client, the insurer, the insurance process and your career