1 Daniel is in the process of resolving an ethical dilemma. He...

1 Daniel is in the process of resolving an ethical dilemma. He believes he has identified all stakeholders in the situation. Daniel's next step in the process is best characterized by

Select one:

A. Notifying the stakeholders of the situation.

B. Gathering accurate information on the stakeholders.

C. Determining who is responsible for resolving the dilemma.

D. Identifying the stakeholder most affected by the dilemma.

2 Erin is an insurance producer dealing with a renewal of her largest and most important client. This client was responsible for bringing Erin into the insurance business and for her personal and financial success. The client tells her that he is very close to purchasing another company that would have troublesome liability exposures. He asks Erin not to reveal any information at this time. Erin knows that after renewal, if the client closes the purchase, insurers will have to automatically cover the new liability exposures for a period of time. This ethical dilemma is best identified as

Select one:

A. Long-term versus short-term.

B. Individual versus community.

C. Truth versus loyalty.

D. Justice versus mercy.

3 Laura is an internal auditor for an insurance company. She has uncovered proof of an agency receiving commissions and other benefits in excess of those normally allowed. Laura recognizes that she is presented with an ethical dilemma and decides that she must first identify stakeholders. Which one of the following statements regarding her situation is true?

Select one:

A. Only those who participated in unethical activities can be stakeholders.

B. The agency is not a stakeholder because its actions are the root of the problem.

C. She must not only identify stakeholders but also their rights.

D. The insurer will not be a stakeholder unless there is proof that the insurer had an unearned benefit.

4 Victor has just been notified that he will be assigned to storm duty and will be out of state for at least six weeks. Victor will have a substantial inventory of local claims when he returns. He could quickly settle a number of claims if he agreed with the claimant's valuation instead of negotiating. Victor is facing an ethical dilemma best labeled

Select one:

A. Justice versus mercy.

B. Truth versus loyalty.

C. Long-term versus short-term.

D. Stakeholders versus non-stakeholders.

5 Ida has an ethical issue she is trying to solve. To be sure she is in a position to make a decision, she has identified stakeholders and their motivation. She believes she has all of the relevant and objective facts. To consider subjective issues, Ida should

Select one:

A. Consider how those affected by the decision view the issue.

B. Ignore feelings because they are irrelevant to the situation.

C. Counsel the final decision maker to ignore his or her feelings.

D. Not be concerned with the reaction of the stakeholders to the decision.

6 Underwriting supervisor Tom has been receiving reports from his employees that Pam, who works in his unit, has an evening job as a waitress in a nearby town. While this is not a direct conflict of interest, his employees are upset because Pam calls in sick on most Fridays and then works her second job. This is a potential ethical dilemma for Tom and he must be aware of unethical situations that may arise. The first step in addressing this problem is for Tom to

Select one:

A. Complete the background work and then identify the appropriate decision maker.

B. Identify the conflict or ethical problem, if he is using a flow chart or checklist approach.

C. Consider the personal impact of the decision such as alienation, isolation, or other negative effects.

D. Search for any applicable code, standard, or regulation that may apply to Pam's situation.

7 Life insurance producer Mack is aware that his company has replaced an inferior life insurance product with a superior policy. The sales commission on the new product is lower than the commission on the policy it is replacing. He is therefore eager to sell more of the inferior products while they are available due to the higher commission. He is aware the new product is better for the insured and is faced with an ethical dilemma. Mack convinces himself that he should market the old product as being unique and one that is the customer's last chance to have the opportunity to purchase the product. Although his resolution may be wrong, Mack's decision, from an ethical decision-making standpoint, is

Select one:

A. People-based.

B. Function-based.

C. Situation-based.

D. Rules-based.