Mark is a sales representative for a large life insurance company. He has been with the

company for about 18 months. Things have been going well, or so he thinks. One concern he

has is about the product he sells most. This product is insurance and savings plan bundled

together. It provides protection for premature death, savings that can be used for retirement,

or an emergency fund that can be accessed quickly without hassle. The problem Mark faces

is that this insurance product is more expensive to purchase, and for young families it

provides the least amount of protection in case of premature death of the breadwinner.

Another drawback is the low return on savings, somewhere between 3 percent and 6 percent

net. The company pushes sales of this product because it is more profitable. The commission

Mark earns is 110 percent of the first year's annual premium, so it is very profitable for him

and his family.

Mark also has another product that is considerably cheaper, that can provide much greater

insurance protection, and at the same time would let the insured invest the difference in

another product (i.e., an annuity) that provides a greater return. But the commissions paid

by the company are very low, and management frowns on too many of these policies being

sold.

The quandary (difficult situation) is: If Mark does what is right for the consumer, he can't

provide for his own family; if he sells the more expensive insurance product, then the

protection doesn't come anywhere near meeting the needs of the family should the

breadwinner die prematurely. What should Mark do? ( Question 4 - 1. What Are the Ethical Issues? [5 marks]

2. Who are the Stakeholders and what vested interest(s) do they have (i.e. what do

they stand to gain or lose)? [5 marks]

3. What are the possible alternatives available to Mark in this case? (Identify all

alternatives first.) [5 marks]

4. Identify and explain which one alternative/option in #3 above is consistent with:

(a) the utilitarian approach [5 marks];

(b) the rights approach [5 marks]; and

(c) the justice approach [5 marks].

You have to explain your answer as discussed in class showing you understand the

particular approach. [Total for the three approaches in (a), (b), and (c) is 15 marks]

QUESTION -

What action would you take if you were in Mark's position? Why? (Use course

content we have discussed in class to support your answer. You may use other ethical

theories/frameworks not used in #4 above or a combination of two or more

theories/frameworks to answer this question.) [5 Marks]