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Clarence is a claims representative for a commercial liability insurer that has a code of conduct governing all employees. Its first rule is that employees

Clarence is a claims representative for a commercial liability insurer that has a code of conduct governing all employees. Its first rule is that employees shall "do the right thing" at all times.

Clarence is handling several claims that have been reported to the reinsurer. The reinsurer informed him that its auditor planned to visit to review those claim files and asked that the entire file for each be made available. Clarence knows he did a poor job writing the summaries in the files. He is embarrassed to have the representative see them, so he is contemplating hiding them during the audit. He does not think that they are relevant to the ultimate outcome of the claims anyway.

Which one of the following statements is true?

Select one:

A. Because he would not be breaking any law by hiding the summaries, Clarence is free to hide them from the auditor.

B. Clarence should look to the code of conduct for guidance and decide to provide the summaries even if they are not done well.

C. Clarence is a stakeholder as to the claims he handles and avoiding embarrassment could be the right thing to do.

D. Realizing that the outcomes of the claims are not affected by the summaries in any way, Clarence is justified in withholding them.

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