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Ethics CPCU Questions And Answers With Verified Solutions 100% Correct!!!
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Ethics CPCU Questions And Answers With Verified Solutions 100% Correct!!!
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Ethics CPCU Questions And AnswersWith Verified Solutions 100% Correct!!!
Given an ethical dilemma concerning the public's understanding of risk
management and insurance, apply __________ and its associated rule to
determine a resolution - ANSWER✔✔ Canon 7
Obligates insurance professionals not only to inform the public about risk and
insurance, but also to keep current on any changing developments in the industry.
Such developments could include new legislation or a new regulation that affects
how consumers make decisions regarding their insurance needs. They can also
include information on current trends and emerging issues affecting insurance
products or risk management. - ANSWER✔✔ Rule 7.1
The public should be informed of the limitations of the insurance mechanism and
the extent to which insurance can and cannot meet overall risk management
needs. This includes how deductibles and exclusions may apply to certain loss
situations - ANSWER✔✔ Rule 7.1
Given an ethical dilemma involving potential misuse of the CPCU designation and
key, apply __________ and its associated rules to determine a resolution. -
ANSWER✔✔ Canon 8
This is the only rule in the CPCU Code of Professional Conduct that includes
specific guidelines. Failure to adhere to these guidelines constitutes a rule
violation. The guidelines are designed to assist CPCUs in the dignified and
professional use of the designation and key. They specify how the CPCU
designation may be used on business cards and stationery and in advertising and
office listings - ANSWER✔✔ Rule 8.1
,Deal with misrepresentation and unfair comparison based on attainment of the
CPCU designation. CPCUs should not assert that, based solely on attainment of
the CPCU designation, they have skills and capabilities greater than those
demonstrated by completing the CPCU program of study. CPCUs also should avoid
making any unfair comparisons between insurance professionals who have
earned the designation and those who have not - ANSWER✔✔ Rules 8.2 and 8.3
Obligates CPCUs to avoid any actions that would lead others to believe they are
representing The Institutes in any official capacity unless the CPCU has been
authorized by The Institutes to do so. Such representations could appear in
articles, presentations, speeches, or any other correspondence. Only those who
are officers, staff, or members of the Board of Trustees of The Institutes are
authorized to represent or speak on its behalf - ANSWER✔✔ Rule 8.4
Given an ethical dilemma surrounding the integrity of the CPCU Code of
Professional Conduct, apply __________ and its associated rules to determine a
resolution - ANSWER✔✔ Canon 9
CPCUs should neither initiate nor support the candidacy of any individual who
engages in unethical business practices that would violate the code's standards.
CPCUs are obligated to support only those CPCU candidates who exemplify the
high ethical standards described in the canons and their associated rules -
ANSWER✔✔ Rule 9.1
Encourages CPCUs to report code violations by bringing such violations to the
prompt attention of the appropriate parties for review. This does not mean that
CPCUs are required to become investigators, make judgments, or submit reports
regarding the actions of other insurance professionals. Instead, it simply means
that CPCUs are generally encouraged, but not required, to voluntarily report
information on suspected violations - ANSWER✔✔ Rule 9.2
,When deciding whether to report an alleged code violation, an individual may be
concerned about the negative consequences that could result from making the
report. __________ addresses this concern by prohibiting any CPCU from
retaliating against an individual who reports alleged code violations. This rule may
help to alleviate concerns a CPCU may have in doing his or her part to uphold the
integrity of the code - ANSWER✔✔ Rule 9.3
Under __________ CPCUs are ethically required to report any use of the CPCU
designation by an individual who is not entitled to use it. Note that __________
differs from __________ in that it requires CPCUs to report such infractions,
rather than simply encouraging them to do so - ANSWER✔✔ Rule 9.4, Rule 9.4,
Rule 9.2
Ethical behavior is based on - ANSWER✔✔ reasoned consideration of all issues
surrounding a conflict
Morality is - ANSWER✔✔ universal and basic to human relationships
Maintaining high ethical standards is best associated with - ANSWER✔✔
knowledge of law and regulations
The Sarbanes-Oxley federal law requires that publicly traded companies identify
principal ethics officers, create anonymous hotlines for reporting unethical
behavior, and - ANSWER✔✔ establish codes of ethics.
Enforceable components of the CPCU Code of Professional Conduct are the -
ANSWER✔✔ Guidelines and Rules.
, Lloyd is a commercial property underwriter at Insurance Company (IC). Two years
ago, he completed his studies and obtained the CPCU designation. Due to recent
changes in workers compensation legislation in one of the states in which IC
operates, the insurer has arranged for a one-day seminar to explain the changes
and the impact they will have on underwriting and claim settlement. Considering
Lloyd's obligations under the Code of Professional Conduct (the Code), which one
of the following statements is correct?
Choose one answer.
A. Lloyd is required to complete any training made available by his employer.
B. Because Lloyd has his CPCU, further training is considered unnecessary.
C. The Code requires Lloyd to remain current on all changes in insurance
legislation.
D. Because the seminar is not directly related to Lloyd's job, he is not obliged to
attend. - ANSWER✔✔ D. Because the seminar is not directly related to Lloyd's job,
he is not obliged to attend.
Ming is the chief actuary at ABC Insurance and a CPCU. Ming has developed a new
method for calculating incurred but not reported losses (IBNR). He has tested the
method over a number of years and has found it to be much more accurate than
the traditional method used by most actuaries. Because the new method gives
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