Saba, an experienced claim representative for Insurance Company (IC), had been assigned a claim brought by a client of Attorney Delmelon. She had visited Delmelon's office to obtain medical records, and learned that Delmelon is also an arts and entertainment lawyer with connections with publishers. Saba mentioned to Delmelon that her husband is an author who has been trying to have his first novel published. Delmelon replied that if Saba does right by his client, he'll provide contacts that would help her husband's cause. Saba decided to treat the claim as any other, but to nevertheless follow up with Delmelon concerning her husband's manuscript at the conclusion of the claim.

Saba sought what she believed was reasonable settlement authority. Her supervisor said, Saba, I'll give you the authority you requested, but I'm a little surprised that you place such a high value on the claim. You seem to see only the positive aspects of claimant's case, and none of the mitigators. Saba wonders whether a desire to help her husband has affected her judgment. Which one of the following statements is true?

Select one:

A. Saba should review the situation and realize that she has yet to receive anything from Attorney Delmelon and any ethical issues are purely speculative.

B. Because Saba has identified an ethical issue, she should review the Code of Professional Ethics—Ethical Guidelines for guidance.

C. Because Saba's supervisor has provided the settlement authority she requested, it is the supervisor and not Saba who is responsible for any ethical issues.

D. Saba should consider that her husband's writing career is important and that she does not think she overvalued the claim, and conclude that her claim evaluation was derived ethically.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct answer is B Because Saba ha... View the full answer