Discussion Board: Ethics in Marketing

The article is rational and informative covers an important issue and this relates to business ethics. Insurance companies have been on the spot on several occasions for misleading their clients in regard to the policies that they sell to them and thus revealing the theme of corporate irresponsibility and unethical selling practices. In this article, there is a serious case between MGM Resorts and the Zurich American Insurance Co. and this relates to a compensation claim by MGM against the insurance for a shooting incident in which many of the MGM clients were injured and thus they were claiming compensation.

From the article, it is clear that Zurich had sold a general cover policy to the resort and thus the claim lodged by the client appears justified. However, Zurich is contesting the claim arguing that the general cover is subject to many limitations. As much as the reader may understand this, one can also ask whether the insurance had made all these limitations clear to the client before the policy document was signed. If such limitations were not revealed to MGM, then there is a clear case of business fraud or irresponsible sale practices. Also, MGM claims that the insurance had promised to defend the firm from claims but never did so. In this case, it is clear that the insurance industry is riddled with an evil of deception and irresponsible selling and thus companies need to voluntary address this issue in accordance with the ethical requirements. The article thus has a great lesson to the readers as it has revealed that insurance clients may have false hope that they are really covered against eventualities whereas they are not. The implication here is therefore that before signing a policy document, clients need to make sure that they have understood all the terms of the cover and asks for comprehensive information about it. Also there is an implication for the government and this is that it should enforce proper regulation of the insurance companies to protect the people from fraud.