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CPCU ETHICS FINAL EXAM AND PRACTICE EXAM QUESTIONS ACTUAL EXAM COMPLETE 1000 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY GRADED A+$23.99
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CPCU ETHICS FINAL EXAM AND PRACTICE EXAM QUESTIONS ACTUAL EXAM COMPLETE 1000 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY GRADED A+
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Course
CPCU ETHICS
Institution
CPCU ETHICS
CPCU ETHICS FINAL EXAM AND PRACTICE EXAM
QUESTIONS ACTUAL EXAM COMPLETE 1000
QUESTIONS WITH DETAILED VERIFIED ANSWERS
(100% CORRECT ANSWERS) /ALREADY GRADED A+
CPCU ETHICS FINAL EXAM AND PRACTICE EXAM
QUESTIONS ACTUAL EXAM COMPLETE 1000
QUESTIONS WITH DETAILED VERIFIED ANSWERS
(100% CORRECT ANSWERS) /ALREADY GRADED A+
Given an ethical dilemma concerning the public's understanding of risk management
and insurance, apply __________ and its associated rule to determine a resolution -
ANSWERCanon 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. - ANSWERRule 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 -
ANSWERRule 7.1
Given an ethical dilemma involving potential misuse of the CPCU designation and key,
apply __________ and its associated rules to determine a resolution. - ANSWERCanon
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 - ANSWERRule 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 - ANSWERRules 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 - ANSWERRule 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 -
ANSWERCanon 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 - ANSWERRule 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 - ANSWERRule 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 -
ANSWERRule 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 - ANSWERRule 9.4, Rule 9.4, Rule 9.2
Ethical behavior is based on - ANSWERreasoned consideration of all issues
surrounding a conflict
Morality is - ANSWERuniversal and basic to human relationships
Maintaining high ethical standards is best associated with - 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
- ANSWERestablish codes of ethics.
Enforceable components of the CPCU Code of Professional Conduct are the -
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.
- 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. - 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. - 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. - ANSWERC. Present objective information on the
pros and cons of the legislation without taking a position.
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