CPCU Ethics Practice Exam CPCU

CPCU Ethics Practice Exam CPCU Ethics Practice Actual Exam Latest Update Questions and Correct Answers Rated A+

The sales team at Local Insurance Company receives periodic training on insurance laws and regulations. Which one of the following statements is correct regarding what the sales team needs to realize?

Select one:

• Regulatory control over the business of insurance is primarily intended

to protect shareholders.

• Laws specify right and wrong behavior and are important to orderly

behavior.

• Laws on their own are enough to dictate moral behavior.
• Laws exist outside the scope of ethical decision making. -ANSWER-B.

Laws specify right and wrong behavior and are important to orderly behavior.

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 purely moral response to a situation cannot be inappropriate.
• Ethics are an individual's personal beliefs about right and wrong.

• Ethics are general codes of expected behavior that are derived from

laws.

• Ethics entail knowing what to do when a situation presents more than

one "right" answer. -ANSWER-D. Ethics entail knowing what to do when a situation presents more than one "right" answer.

Laura, a claims processor for Great American Insurance Company, notices that a claim in her queue involves a personal friend. While the claim itself is legitimate, the suggested settlement amount appears to be higher than similar claims in Laura's experience. Her decision on whether to refer her friend's claim for further investigation or to pay the stated amount primarily involves which one of the following?

Select one:

• Ethics
• Principles
• Laws
• Morals -ANSWER-D. Morals

Which one of the following statements concerning laws is true?

Select one:

• Laws are enough to dictate moral behavior.
• Laws describe moral responses to conflict.
• Laws impose a sense of societal decency and order.
• Laws are ethical tenets. -ANSWER-C. Laws impose a sense of societal

decency and order.

Underwriter Jessica is confronted with an ethical issue involving an applicant. She wants to handle it ethically. She should remember that ethical behavior is primarily based on

Select one:

• What feels like the right thing to do.
• Consideration of applicable laws and morals.
• Application of laws to personal values.
• Reasoned consideration of all issues surrounding a conflict. -ANSWER-
• Reasoned consideration of all issues surrounding a conflict.

Which one of the following best describes business ethics?

Select one:

• Business ethics primarily concern decisions of right versus wrong.
• Business ethics are, in reality, applied ethics.
• Business ethics are rooted in the profit motive.
• Business ethics are applied legal obligations. -ANSWER-B. Business

ethics are, in reality, applied ethics.

Managers at Greater North American Insurance Company must deal with ethical conflicts on a regular basis. Ethical conflicts frequently arise because of

Select one:

• Overly rigorous state insurance regulations.
• The inherent needs of different parties.
• A misunderstanding of laws or regulations.
• A lack of concern regarding an organization's reputation. -ANSWER-B.

The inherent needs of different parties.

Anil is a new customer service representative in a busy insurance company sales department. In training, he is finding that his employer greatly values acting professionally at all times. Anil should learn that

Select one:

• Ethical insurance professionals need not concern themselves with laws

and regulations.

• Business ethics entail doing what is right in the context of products and

services and relationships with stakeholders.

• Governmental entities cannot encourage moral behavior or discourage

immoral actions.

• Ethical behavior requires sacrificing one's own values for the good of the

consuming public and society as a whole. -ANSWER-B. Business ethics entail doing what is right in the context of products and services and relationships with stakeholders.

Greater North American Insurance Company operates according to the laws and regulations of the various states in which it conducts business.Which one of the following statements regarding laws is most accurate?

Select one:

• Laws cannot describe the ethical response to every conflict.
• Laws do not factor into ethical decision making.
• Laws are not concerned with insurer solvency.
• Laws will clearly define the ethical response to any conflict. -ANSWER-
• Laws cannot describe the ethical response to every conflict.