John Agent and staff are developing objectives for a code of ethics they plan to draft. Which of the following is NOT an objective?

• A. Be simple and clear.
• B. Deal comprehensively with the types of issues that may arise.
• C. Avoid violating the law and insurance regulations.
• D. Identify which employees will need to submit to a code of ethics.

Answer: (D)

The idea being tested is what makes a code of ethics useful in guiding behavior. A well-crafted code should be simple and clear so everyone understands the expected conduct; it should cover a wide range of issues that could come up, giving staff guidance on how to respond to common ethical dilemmas; and it should help ensure compliance by staying within legal and regulatory requirements. The option about identifying which employees must submit to the code focuses on who is required to follow it, which is an implementation detail of policy or enforcement rather than the purpose of the ethics code itself. In other words, the code’s objectives are to promote clear, comprehensive, and lawful conduct for those it applies to, not to decide which individuals are subject to it.