Gilda accidentally drove her car off the road and down an embankment. She was severely injured. Her car was damaged but was repairable. Gilda's auto policy with Insurance Company (IC) covered medical expenses and other than collision (OTC) losses, but not collision losses. A relative notified IC of the accident. Because of Gilda's injuries, IC's claim representative, Alan, has not been able to speak with her.

As Alan arrived at the accident scene to take photos, a tow truck from an auto repair shop was removing Gilda's car. The operator asked Alan whether there was coverage to repair the car. Alan said probably not, as there was only OTC and no collision coverage. The operator said, "We'll see what we can do. The lady supports a family and will need her car fixed to get to work." The operator removed a small bottle from his pocket and squirted a red liquid on the wrecked car's bumper. He turned to Alan, and said, "Get a picture of this deer blood, which makes this an animal contact under OTC coverage. And if you know what is good for you, you won't say anything about what you just saw."

Alan feels that he is being asked to participate in insurance fraud, but he is fearful of disclosing what he saw. He decides to consult the Code of Professional EthicsEthical Guidelines for Insurance Professionals (Ethical Guidelines) for direction. Which one of the following statements is true under the Ethical Guidelines?

Select one:

A. Alan should pay the OTC claim, because Gilda needs her car for work and an ethical canon requires that Alan place the public interest above his own.

B. Alan should try to explain the concepts of collision and OTC insurance to the tow truck operator, because an ethical canon requires that he improve the public understanding of insurance.

C. Alan should report the situation to the proper authorities as insurance fraud, because an ethical canon mandates that he obey all laws and regulations.

D. Alan should study more closely the difference between collision and OTC coverages, because an ethical canon requires that he continually improve his professional knowledge.