CPCU Ethics test exam 2023 with 100% verified accurate answers
3 views 0 purchase
Course
CPCU
Institution
CPCU
Ethical behavior is based on - correct answerreasoned consideration of all issues surrounding a conflict
Morality is - correct answeruniversal and basic to human relationships
Maintaining high ethical standards is best associated with - correct answerknowledge of law and regulations
The Sa...
CPCU Ethics test
Ethical behavior is based on - correct answerreasoned consideration of all issues surrounding a conflict
Morality is - correct answeruniversal and basic to human relationships
Maintaining high ethical standards is best associated with - correct answerknowledge 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 - correct answerestablish codes of ethics.
Enforceable components of the CPCU Code of Professional Conduct are the - correct answerGuidelines 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. - correct answerD. 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 Ming more confidence in the accuracy of his rate-making data, it allows ABC to charge lower rates than its competitors. This in turn gives ABC a marketing advantage. Which one of the following best describes Ming's obligations under Canon 5 of the Code of Professional Ethics regarding raising the professional standards of the insurance profession? Choose one answer. A. The new IBNR calculation method constitutes a trade secret and Ming is under no obligation to divulge it. B. Because the new method could benefit consumers in terms of lower rates, Ming is required to share it
with other insurers. C. Canon 5 specifically prohibits CPCUs from divulging information about their employers' business practices. D. Ming should write a professional article in an actuarial trade journal describing the new IBNR calculation method. - correct answerA. The new IBNR calculation method constitutes a trade secret and Ming is under no obligation to divulge it. Elin is a surety producer and a CPCU. She regularly deals with legal and accounting information. She notices that certain financial information provided by a contractor shows a deteriorating financial position. To best comply with Rule 6.1 of the Code of Professional Conduct as it concerns confidential information needed by a professional, Elin should Choose one answer. A. Suggest that a competing contractor consider merging with the client. B. Report the newest financial information to the surety. C. Counsel the client as to methods to improve the financial position. D. Do nothing as the information is proprietary. - correct answerB. Report the newest financial information to the surety.
Hugo is a CPCU and resident vice president and regional manager of an insurance company. The state legislature is considering a bill that would alter auto coverages and require insurers to reduce rates by 25 percent. Hugo is invited to be part of a roundtable discussion on the legislation by the state public broadcasting affiliate. To best comply with Canon 7 of the Code of Professional Conduct as it relates to helping to improve the public understanding of insurance, Hugo should Choose one answer. A. Seek permission from his employer to present the position of his company. B. Obtain and present the position of the insurance trade association to which his employer belongs. C. Present objective information on the pros and cons of the legislation without taking a position. D. Present his opinion on the legislation clearly noting it is his opinion and may or may not be the position of his company. - correct answerC. Present objective information on the pros and cons of the legislation without taking a position.
Daiki, a CPCU, has been underwriting a difficult account and has been working with the proposed insured's risk manager. On two occasions, Daiki has received letters from the risk manager with this typed below the risk manager's signature, "Almost a CPCU." Daiki learns that the risk manager has only one more course to pass to become a CPCU. Daiki's most appropriate action would be to
Choose one answer. A. Ignore the verbiage as the risk manager has only one CPCU part to pass. B. Ask the risk manager to stop adding the verbiage. C. Report the risk manager to the American Institute. D. Notify the employer of the risk manager of the practice. - correct answerC. Report the risk manager to
the American Institute.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller YANCHY. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $18.49. You're not tied to anything after your purchase.
