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CPCU ETHICS TEST QUE STIONS &
ANSWERS
Question: Sadie, a new claims adjuster, was on the job
just two months when she recognized an ethical issue.She knew from her training that ethics concern making
often difficult decisions. Select one: A. Between two or
more right answers. B. Based on legal obligations. C.Between right and wrong. D. Based on professional standards.
CORRECT ANSWER : A. Between two or more right
answers.
Question: Greater North American Insurance Company
encounters a recurring claims situation in which it can choose to pay out either of two different amounts for any given situation, depending on the interpretation of the claim. There are no regulations that directly address the issue. The policy they choose to formulate will be primarily based on which one of the following? Select
one: A. Principles B. Ethics C. Laws D. Morals
CORRECT ANSWER : B. Ethics
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Question: Which one of the following situations primarily
represents a moral, as opposed to legal or ethical, failure?
Select one: A. An agent continues to sell insurance
coverage despite having her license suspended. B. An applicant misrepresents previous work experience to land a position. C. An insurer inflates the pricing for a certain product line for which they have little competition. D. An pysthe insurer unfairly discriminates against applicants who live in certain ZIP codes.
CORRECT ANSWER : B. An applicant misrepresents
previous work experience to land a position.
Question: 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: A. Regulatory control over the business of
insurance is primarily intended to protect shareholders. B.Laws specify right and wrong behavior and are important to orderly behavior. C. Laws on their own are enough to dictate moral behavior. D. Laws exist outside the scope of ethical decision making.
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CORRECT ANSWER : B. Laws specify right and wrong
behavior and are important to orderly behavior.
Question: 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 are an individual's personal beliefs about right and wrong.
- Ethics are general codes of expected behavior that are
derived from laws. D. Ethics entail knowing what to do when a situation presents more than one "right" answer.
CORRECT ANSWER : D. Ethics entail knowing what to
do when a situation presents more than one "right" answer.
Question: 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
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investigation or to pay the stated amount primarily
involves which one of the following? Select one: A.
Ethics B. Principles C. Laws D. Morals
CORRECT ANSWER : D. Morals
Question: Which one of the following statements
concerning laws is true? Select one: A. Laws are enough
to dictate moral behavior. B. Laws describe moral responses to conflict. C. Laws impose a sense of societal decency and order. D. Laws are ethical tenets.
CORRECT ANSWER : C. Laws impose a sense of
societal decency and order.
Question: 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: A. What feels like the right
thing to do. B. Consideration of applicable laws and morals. C. Application of laws to personal values. D.Reasoned consideration of all issues surrounding a conflict.