Morality is Select one: A. Universal and basic to human...

Morality is Select one: A. Universal and basic to human relationships. B. Established by the common law. C. The application of ethics to the needs of stakeholders. D. The system that protects property and people. Question 2 ID# 5935688 Points: 1 Flag Question Question text Alexandria is a claims supervisor who demands that her claims representatives are up to date on the latest insurance laws. She knows that laws are important because laws can be said to Select one: A. Dictate moral behavior. B. Establish a code of appropriate behavior. C. Encompass every type of ethical behavior. D. Cover the entire spectrum of human activities. Question 3 ID# 5935689 Points: 1 Flag Question Question text The underwriters of Good Insurance Services know the importance of moral conduct in their professional endeavors. Moral conduct implies behavior based on which one of the following? Select one: A. Legal tenets B. Order C. Codes and regulations D. Virtue Question 4 ID# 5935692 Points: 1 Flag Question Question text Suzie is a trainer at an insurer who is conducting a class on ethics. Which one of the following statements is correct concerning what she needs to impress upon her students? Select one: A. A purely moral response to a situation cannot be inappropriate. B. Ethics entail knowing what to do when a situation presents more than one "right" answer. C. Ethics are an individual's personal beliefs about right and wrong. D. Ethics are general codes of expected behavior that are derived from laws. Question 5 ID# 5854188 Points: 1 Flag Question Question text Which one of the following best describes business ethics? Select one: A. Business ethics primarily concern decisions of right versus wrong. B. Business ethics are, in reality, applied ethics. C. Business ethics are applied legal obligations. D. Business ethics are rooted in the profit motive. 1/10 By exhibiting high ethical standards when dealing with policyholders, insurance professionals might be able Select one: A. To lower the cost of the insurance product. B. To earn the trust of skeptical policyholders. C. To reinforce policyholder general willingness to purchase insurance. D. To reduce claims expenses while increasing revenue. Question 7 ID# 5854401 Points: 1 Flag Question Question text Which one of the following statements is correct? Select one: A. Insurance professionals have a responsibility to insure any and all risks, regardless of the effect this has on insurer profitability. B. Underwriters must balance the customer's need for a fair price and comprehensive coverage with the insurer's profit goals. C. Claim representatives should carefully determine the value of each claim and never pay insureds or claimants more than that value. D. Agents are paid on a commission basis because their responsibility to insurers is to sell as many policies as possible. Question 8 ID# 5849381 Points: 1 Flag Question Question text Demonstrating high ethical standards by explaining coverage and the duties of the policyholder is best carried out by Select one: A. A loss control specialist. B. An underwriter. C. A premium auditor. D. A broker. Question 9 ID# 5856211 Points: 1 Flag Question Question text Mitsuki visited a local insurance agent to obtain coverage for her yacht. She requested liability coverage in the amount of $100,000 and hull coverage in the amount of $150,000. She asked the agent to submit her request to Watercraft Insurers. The higher the coverage limits, the more money the agent makes in commissions. Which one of the following is the most appropriate action for the agent? Select one: A. The agent should review the situation with Mitsuki to determine what would be reasonable amounts of coverages. B. The agent should refuse to submit a request to Watercraft Insurers until it is determined whether lower coverage limits are advisable. C. The agent should submit a request to Watercraft Insurers with the coverage requested just as Mitsuki asked. D. The agent should refuse to submit a request to Watercraft Insurers until it is determined whether greater coverage limits are advisable. Question 10 ID# 5849581 Points: 1 Flag Question Question text Bernice is a claim adjuster with Insurance Company (IC). She has been assigned a liability claim against IC's policyholder, Garth. The claimant, Calvin, alleges that while at a party hosted by Garth, he became uncharacteristically intoxicated due to the strength of the drinks Garth was mixing and serving. As a result of his intoxication, he fell down the stairs at Garth's house, breaking his back. The injury has left Calvin paraplegic. In Bernice's opinion, Garth is fully liable under state law for Calvin's disability. Which one of the following statements best describes Bernice's responsibilities in this situation? Select one: A. She should discuss the claim with Garth and determine how he would like to see it handled in terms of settling or going to court. B. She should consider and evaluate Calvin's pain and suffering, and make a fair offer in settlement of the loss. C. She should consider the case from the perspective of IC, which wants the claim resolved for the least amount possible. D. She should pay Calvin enough to prevent him from filing suit and causing the insurer to incur extensive legal expenses. 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. The agency is not a stakeholder because its actions are the root of the problem. B. She must not only identify stakeholders but also their rights. C. Only those who participated in unethical activities can be stakeholders. D. The insurer will not be a stakeholder unless there is proof that the insurer had an unearned benefit. Question 12 ID# 5849423 Points: 1 Flag Question Question text 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. Individual versus community. B. Justice versus mercy. C. Long-term versus short-term. D. Truth versus loyalty. Question 13 ID# 5849420 Points: 1 Flag Question Question text 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. Identifying the stakeholder most affected by the dilemma. B. Notifying the stakeholders of the situation. C. Determining who is responsible for resolving the dilemma. D. Gathering accurate information on the stakeholders. Question 14 ID# 5854149 Points: 1 Flag Question Question text Luke is new to the insurance business but desires to be an insurance professional. Luke is facing an ethical dilemma. He seeks advice from four co-workers. Of the following suggestions from Luke's co-workers, which one is the best approach for solving his ethical dilemma? Select one: A. Identify the stakeholders, why they did what they did, and the relevant ethical issues. B. Choose the solution that is most likely to avoid a lawsuit brought against you by a relevant stakeholder. C. Select the ethical solution that gives you the best ability to avoid getting in trouble yourself. D. After looking at who will be affected by your decision, pick the solution that benefits the stakeholders you like the most. Question 15 ID# 5849563 Points: 1 Flag Question Question text Anil is a commercial insurance producer who specializes in large, complex accounts. Anil is approached by the risk manager from Altor Systems, a company that specializes in developing special-purpose computer operating systems for use in such things as communications satellites, space vehicles, and military applications. Because of the nature of its business, Altor often finds it difficult to obtain insurance coverage, much less to obtain it at a cost the company sees as reasonable. Based on his experience, Anil is aware of two companies that might provide coverage for Altor. One, licensed in the client's home state, has very stringent underwriting guidelines and relatively high premiums. The second is a nonadmitted insurer, not licensed in the client's home state. This second insurer has much more flexible underwriting guidelines, and Anil is certain that the premiums charged would be much lower, as would be the commission Anil would earn on the account. After examining stakeholders, and motivations, which one of the following should be Anil's next course of action? Select one: A. To examine any laws, regulations, and guidelines governing the situation B. To consider how his colleagues might handle the situation C. To recommend that his client deal with the non-admitted insurer D. To examine his own feelings about the case Erma travels on company business frequently. Her travel expenses are paid by the company but she must fill out an expense sheet to be reimbursed for her meals. Knowing that receipts are not required for meals that cost up to $25, Erma submits false expense statements for $25 whenever her hotel has free breakfasts. This falsification and padding of expenses is an example of wrongly applied Select one: A. Situation-based ethical decision making. B. Altruism-based ethical decision making. C. Rules-based ethical decision making. D. Function-based ethical decision making. Question 17 ID# 5849197 Points: 1 Flag Question Question text 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. Rules-based. D. Situation-based. Question 18 ID# 5856203 Points: 1 Flag Question Question text Joshua is insured with InsureCo through its agent, Olivia. He has an automobile and a commercial property policy with InsureCo. Joshua's son Harry, who lives at home, is driving the insured vehicle. He loses control and hits a guardrail causing $4,500 damage to the vehicle. Joshua asks Olivia for advice. Olivia knows that InsureCo's guidelines state that one at-fault accident, whether a claim is paid or not, results in an automatic premium increase of twenty-five percent. If Joshua pays for the damage himself the insurer may never know about the accident. Olivia's decision is to advise InsureCo of the accident. Which one of the following decision-making tools is Olivia most likely using when she makes her decision?   Select one: A. Situation-based decision making B. Ethics-based decision making C. Rules-based decision making D. People-based decision making Question 19 ID# 5854396 Points: 1 Flag Question Question text Burt's young son belongs to a scouting organization. A father of a fellow scout has volunteered to be the group's treasurer. Burt, as a bond underwriter, knows from an application he had rejected that the other father had been in trouble for embezzlement, but Burt's employer has a policy against disclosing publicly that which is learned in the course of underwriting. Burt is contemplating whether he should reveal to the scouts that which he knows. His dilemma could probably be resolved by Select one: A. Analyzing whether any laws, regulations, or standards apply to the situation. B. Realizing that the scouts are a not-for-profit organization to which no ethical duty is owed. C. Recognizing that the issue is one of practicality and not ethics. D. Considering that his employer may someday want the rejected account. Question 20 ID# 5854397 Points: 1 Flag Question Question text Newman is a claim representative who is investigating coverage for a new claim. He quickly realizes that the policy sold to the insured was not the one the insured believes he purchased. There would be coverage if the right policy was provided, but as it is, there is no coverage. Newman could honor the claim as if it were brought under the policy the insured expected. Otherwise, the agent could face an error and omissions claim. If Newman considers all the possible decisions and outcomes for each and bases his final decision on who will be helped and who will be hurt, and to what degree, he is practicing Select one: A. People-based decision making. B. Checklist-based decision making. C. Rules-based decision making. D. Situation-based decision making. Question 21 ID# 5935245 Points: 1 Flag Question Question text Caroline is an underwriting supervisor with Durham Insurance. She has been advised of an anonymous reporting of unethical behavior by one of her underwriters. She is anxious about the dilemma, and decides to use the checklist method to help her resolve it. Caroline has gathered information on the ethical problem, determined how it arose, and identified the various stakeholders involved. Which one of the following should be her next step in the process? Select one: A. Consider whether there is a duty or loyalty to uphold B. Evaluate the dilemma from the situation-based prospective C. Look for an applicable code or standard D. Determine who is responsible for resolving the conflict Question 22 ID# 5854367 Points: 1 Flag Question Question text 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. Consider the personal impact of the decision such as alienation, isolation, or other negative effects. B. Identify the conflict or ethical problem, if he is using a flow chart or checklist approach. C. Search for any applicable code, standard, or regulation that may apply to Pam's situation. D. Complete the background work and then identify the appropriate decision maker. Question 23 ID# 5935409 Points: 1 Flag Question Question text Clarence is a claims representative for a commercial liability insurer that has a code of conduct governing all employees. Its first rule is that employees shall "do the right thing" at all times. Clarence is handling several claims that have been reported to the reinsurer. The reinsurer informed him that its auditor planned to visit to review those claim files and asked that the entire file for each be made available. Clarence knows he did a poor job writing the summaries in the files. He is embarrassed to have the representative see them, so he is contemplating hiding them during the audit. He does not think that they are relevant to the ultimate outcome of the claims anyway.  Which one of the following statements is true? Select one: A. Clarence is a stakeholder as to the claims he handles and avoiding embarrassment could be the right thing to do. B. Because he would not be breaking any law by hiding the summaries, Clarence is free to hide them from the auditor. C. Clarence should look to the code of conduct for guidance and decide to provide the summaries even if they are not done well. D. Realizing that the outcomes of the claims are not affected by the summaries in any way, Clarence is justified in withholding them. Question 24 ID# 5935243 Points: 1 Flag Question Question text When faced with an ethical dilemma, an insurance professional can often look to the organization's code of ethics as a guide. Which one of the following features of the code of ethics can be particularly helpful in the decision-making process? Select one: A. The published documentation of the organization's principles B. The use of examples of situations and possible resolutions C. The incorporation of people-based decision making D. The shared responsibility of all stakeholders Question 25 ID# 5935244 Points: 1 Flag Question Question text Oliver is an underwriting manager. During a recent staff meeting, two of his underwriters expressed concerns about what they considered unethical behavior by one of the producers. After gathering more facts, and reviewing company practices and professional codes, Oliver determines that there is an ethical concern. Which one of the following is Oliver's next step in resolving this dilemma? Select one: A. Decide on a course of action B. Determine who is responsible for resolving the conflict C. Evaluate the dilemma from a people-based prospective D. Analyze the positive and negative impact on the stakeholders Question 26 ID# 5849212 Points: 1 Flag Question Question text A restraint or a restriction to access is an example of which one of the following types of barriers to ethical decision making? Select one: A. An administrative barrier B. A procedural barrier C. A moral barrier D. A physical barrier Question 27 ID# 5849215 Points: 1 Flag Question Question text The primary reason for the creation of federal whistle-blower statutes was to Select one: A. Provide anonymity for individuals wishing to report unethical behavior. B. Facilitate and reward the reporting of unethical behavior. C. Form a fail-safe mechanism for reporting unethical behavior. D. Protect individuals who report unethical activities. Question 28 ID# 5849221 Points: 1 Flag Question Question text In which one of the following ways can a culture of greed form a administrative barriers to ethical decision making? Select one: A. Employees who are earning good salaries may be reluctant to bring unethical practices to light. B. Threats to personal safety keep employees from reporting unethical activities. C. Employees fail to consider all possible outcomes and this failure results in harm. D. Corporate managers fail to outline and support defined procedures. Question 29 ID# 5854405 Points: 1 Flag Question Question text Ethics codes are important for insurance professionals in overcoming procedural barriers to ethical decision making for which one of the following reasons? Select one: A. To address insurer capacity and solvency issues B. For successful product innovation C. For reduction of the possibility of inconsistent management standards D. To provide fairness, equity, and stability in setting salaries Question 30 ID# 5854121 Points: 1 Flag Question Question text Procedural barriers that can prevent an insurance professional from making ethical decisions can arise when Select one: A. When key documentation is missing or destroyed. B. Insufficient guidance is available regarding ethical behavior. C. The decision maker's personal safety is threatened. D. Witnesses are unavailable. Question 31 ID# 5849388 Points: 1 Flag Question Question text Jerry is a claim representative with Insurance Company. His wife, Margie, is a dental hygienist at Midtown Dental Clinic. One day, Jerry's supervisor assigns him a small theft claim submitted by Midtown Dental Clinic. Under Canon 1—Altruism of the Ethical Guidelines for Insurance Professionals, which one of the following would be Jerry's best course of action? Select one: A. Ask his supervisor to assign the claim to another claim representative. B. Pay the claim based on the facts and merits of the case. C. Deny the claim so as to avoid appearing to benefit Margie's employer. D. Have Margie ask her employer to withdraw the claim. Question 32 ID# 5853966 Points: 1 Flag Question Question text Zack is a producer who routinely fails to provide all the necessary information requested on applications for insurance. Underwriters will often have to contact Zack to fill in missing information. Using the Ethical Guidelines for Insurance Professionals to evaluate Zack's actions, which one of the following is the most accurate evaluation of his actions? Select one: A. Zack is not diligently performing his occupational duties. B. Zack's actions do not likely constitute legal conduct. C. Zack is not placing the public's interest above his own. D. Zack is not assisting in improving the public understanding of insurance. Question 33 ID# 5854135 Points: 1 Flag Question Question text Michael, CEO of a managing general agency, established a policy requiring all employees to read, understand, agree to, and abide by the Code of Professional Ethics—Ethical Guidelines for Insurance Professionals. He has made this policy known to retail agents and attorneys with whom he deals. The canon most supported by Michael's establishment of this policy is Select one: A. Endeavor to place the public interest above their own. B. Obey all laws and regulations and avoid conduct that would cause unjust harm to others. C. Aspire to raise the professional and ethical standards in the insurance business. D. Seek continually to maintain and improve their professional knowledge, skills, and competencies. Question 34 ID# 5849390 Points: 1 Flag Question Question text Frank is a commercial lines producer at Insurance Brokers (IB). Five years ago, he obtained an insurance designation. Completing the courses for the designation was a challenge for Frank and he had to work very hard to earn it. Since then Frank has not taken any courses or attended any insurance-related seminars even though IB actively encourages its employees to do so. Frank's feeling is that he has earned a designation and that should be enough. Which one of the following statements best describes how  Canon 2—Continuing Professional Development  of the Ethical Guidelines for Insurance Professionals applies in this case? Select one: A. Frank is in contravention of Canon 2, which states that insurance professionals must attend courses and seminars required by their employers. B. Frank is in contravention of Canon 2 because changes in the legal, economic, and social environment require continuous learning. C. Frank has no obligations under Canon 2 because it applies only to those insurance professionals who have not obtained any designation. D. Frank has complied with Canon 2 by obtaining a designation and is not obliged to participate in further professional development. Question 35 ID# 5856205 Points: 1 Flag Question Question text Sofie is an underwriting trainer with Zee Insurance Company. The state government recently made changes to auto legislation concerning third-party liability coverage. A government representative has announced a series of seminars dealing with the changes. Sofie approaches her supervisor to see whether the company will pay for her attendance at the seminars. She feels that, as a trainer, she should be fully up to date on the new legislation. This is an example of which one of the following Canons? Select one: A. Canon 1 - Altruism B. Canon 6 - Professional Relationships C. Canon 3 - Legal Conduct D. Canon 2 - Continuing Professional Development