CPCU Ethics Exam (2023/ 2024) Questions
and Verified Answers| Graded A
Q: Which one of the following statements is correct?
Choose one answer.
A. Continuous pursuit of knowledge, utmost good faith in all dealings, and adherence to
standards and regulations all contribute to professionalism.
B. Aspiring to be a professional need not require much personal sacrifice or time away from
family or recreational pursuits.
C. Support of family, friends, and colleagues is irrelevant to achieving the status of a
professional in the insurance industry.
D. Unfortunately, practitioners committed to professionalism often have difficulty adapting to
changes in the global marketplace.
Answer:
A. Continuous pursuit of knowledge, utmost good faith in all dealings, and adherence to
standards and regulations all contribute to professionalism.
Q: Which one of the following statements is correct?
Choose one answer.
A. An ethical insurance professional need not maintain knowledge of current regulatory issues.
B. Laws have no ability to help keep competition fair.
C. Adherence to ethical standards does not build consumers’ trust in the insurance industry.
D. A pursuit of continuing education in laws and regulations helps insurance professionals avoid
allegations of impropriety.
Answer:
D. A pursuit of continuing education in laws and regulations helps insurance professionals avoid
allegations of impropriety.
Q: Which one of the following statements is correct?
Choose one answer.
A. Social responsibility expectations are in conflict with an insurer’s goals of long-term survival
and sustained growth.
B. In the modern world, attention to social responsibility has become a relatively low priority for
most commercial businesses.
C. The primary purpose of insurance continues to be to generate profits for owners and
shareholders.
D. Many insurance products have evolved from the identification of a social need and the
industry’s societal responsibility to meet that need.
Answer:
D. Many insurance products have evolved from the identification of a social need and the
industry’s societal responsibility to meet that need.
Q: By exhibiting high ethical standards when dealing with policyholders, insurance
professionals might be able
Choose one answer.
A. To reinforce policyholder general willingness to purchase insurance.
B. To earn the trust of skeptical policyholders.
C. To reduce claims expenses while increasing revenue.
D. To lower the cost of the insurance product.
Answer:
B. To earn the trust of skeptical policyholders.
Q: Jessica is a loss control specialist with an insurer. She often inspects the property and
operations of insureds and makes loss control recommendations to the underwriter. Jessica’s
duties in these situations are best described by which one of the following?
Choose one answer.
A. Her duties involve the insurer and the policyholder.
B. Her duties involve the policyholder and the public with which the policyholder deals.
C. Her duties involve the policyholder, the public, and the insurer.
D. Her duties involve the insurer and the public.
Answer:
C. Her duties involve the policyholder, the public, and the insurer.
Q: Emily is a producer on a difficult risk. She has gathered extensive information regarding an
insurance applicant. In order for Emily to meet her professional responsibilities to the insurer,
Emily should
Choose one answer.
A. Recommend coverage that is the most profitable for the insurer.
B. Recognize a mutual interest and do what is best for the insurer and herself.
CPCU Ethics Exam (2023/ 2024 Update)
200+ Questions and Verified Answers| 100%
Correct
Q: There is one characteristic that we share:
Answer:
we all choose goals and pursue them
Q: In the absence of compelling justification
Answer:
we expect respect and must be willing to extend respect for others’ goals and activities
Q: By acting ethically
Answer:
you have given them no reason to believe that you would act in any way that would not be for
their benefit.
Q: One of the key character traits
Answer:
Trust
Q: By acting ethically
Answer:
you created a bond of trust between you, the client you treated correctly, and any friends or
acquaintances that those clients might recommend
Q: Trust
Answer:
The assured reliance on the character, ability, strength or truth of someone or something.
Q: Even if you act on your own with the highest of ethical standards,
Answer:
if the company or the industry that you represent is not perceived as trustworthy or ethical, it
reflects on you and your ability to perform your job.
Q: How can a company act unethically?
Answer:
A good example is deceptive or misleading marketing or advertising campaigns
Q: The duty of a profession
Answer:
is to fulfill a definite service within society that requires a high degree of skill or knowledge.
Q: It is in the performance of this service
Answer:
that the insurance professional earns the trust of the public
Q: A company develops trust by
Answer:
assuring its customers as well as its employees, that it will meet its commitments, that it does
have an established set of corporate values, and that it cares or is continuously working for the
good of its customers and its employees
Q: Golden Rule Test
Answer:
If your company’s products were being sold to you, would you buy them? Does it deliver its
policies promptly to the customers? Do those policies accurately reflect the coverages that your
customer bought from you? Does your company pay claims promptly? Does it respond to
customer concerns and questions promptly? Does it provide the level of overall service that it
promised before the customer purchased the product?
Q: The company that forms a bond of trust with its employees and with its customers
Answer:
will ultimately gain customer loyalty and, with that, should be able to gain market share and
increase the opportunities for its employees to be successful.
Q: Know your company well
Answer:
Know its mission statement, its vision statement, and its corporate values statement. If you have
a great story to tell regarding your company’s high ethical standards, by all means add that story
to your sales presentation
Q: In today’s world
Answer:
the integrity and reputation that your company has can be the difference between a sale made and
a sale lost
Q: is one of the traits of ethical behavior.
Answer:
trust
Q: A company develops trust by assuring all of the following, EXCEPT:
Answer:
it is continuously working for the good of regulators
Q: An insurance professional honors their commitments by doing all of the following,
EXCEPT:
Answer:
providing the name of a trial lawyer in the event of challenged claims
Q: All of the following are factors in establishing a relationship of trust with your clients,
EXCEPT:
Answer:
believing there is a sucker born every minute
Q: In the absence of compelling justification, in the pursuit of ethical decision-making, we
_______________.