Reference no: EM132239806

1 An insurance professional who focuses on the goals of society instead of his or her own goals is best serving the needs of which one of the following groups?

Select one:

A. Policyholders

B. Insurers

C. Government

D. The public

2 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?

Select one:

A. Her duties involve the insurer and the policyholder.

B. Her duties involve the insurer and the public.

C. Her duties involve the policyholder, the public, and the insurer.

D. Her duties involve the policyholder and the public with which the policyholder deals.

3 Elmer is a commercial underwriter at ABC Insurance Company. Elmer and one of his co-workers, Jeff, play golf together regularly at the local public course. One weekend, Jeff suggests that instead they play at an expensive private club. He explains to Elmer that the owner of a new commercial account Jeff recently wrote gave Jeff a membership to the club. The situation makes Elmer uncomfortable because he knows that ABC has a strict policy about not accepting gifts from policyholders. Elmer has an ethical dilemma and is torn about whether to inform his employer about the gift or not. Which one of the following types of ethical conflicts does this situation most clearly represent?

Select one:

A. Justice versus mercy

B. Individual versus community

C. Truth versus loyalty

D. Long-term versus short-term

4 The commercial property underwriting guidelines at Commercial Insurance Ltd. (CIL) state that rooming houses with more than six rooms for rent are not acceptable for insurance. Lachlan, an agent, has a client that is a nonprofit corporation providing affordable housing and social services to low-income people. It is partially funded through proceeds from thrift stores that it owns. It presently insures four apartment buildings, a fleet of automobiles, and six retail outlets with CIL.

The client has purchased two rooming houses and requests commercial property coverage for both of them. One rooming house has six rooms to rent and one has eight rooms to rent. Because of the charitable purposes of the client, Lachlan feels the insurer should provide coverage for both rooming houses. This is an example of which one of the following ethical dilemmas?

Select one:

A. Justice versus mercy

B. Truth versus loyalty

C. Individual versus community

D. Long-term versus short-term

5 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. Select the ethical solution that gives you the best ability to avoid getting in trouble yourself.

B. Choose the solution that is most likely to avoid a lawsuit brought against you by a relevant stakeholder.

C. Identify the stakeholders, why they did what they did, and the relevant ethical issues.

D. After looking at who will be affected by your decision, pick the solution that benefits the stakeholders you like the most.