1.Anita is a personal lines underwriter who recently received the CPCU designation. Anita is proud of her accomplishment and is committed to fulfilling her ethical responsibilities under the Code of Professional Ethics. She has set herself a goal to complete one activity to support each of the Canons in the Code. Which one of the following activities would best fulfill Anita's obligations under Canon 5 regarding raising professional standards of the insurance profession?

Select one:

A. Taking a continuing education course related to her job duties

B. Taking a personal development course such as yoga or auto repair

C. Serving on the head office audit team to audit branch offices

D. Writing a professional article for an insurance trade journal

2.Juhani, a producer and CPCU, has learned from an insurance client that the client is in secret negotiations for a merger. If the merger is successful, the client would control a new business with significant new products liability exposures. A renewal for the client is pending and Juhani is preparing a renewal submission. To best comply with Rule 6.1 of the Code of Professional Conduct as it relates to confidential information, Juhani should

Select one:

A. Pose the merger as a hypothetical to the underwriter.

B. Disclose the potential merger.

C. Ask the client for permission to disclose the potential merger.

D. Keep the merger information confidential until it occurs.

3.Jose, a CPCU and producer, is an expert in insuring major contractors and developers. One of his clients is negotiating a complex development involving a general contractor and a local governmental unit in a neighboring state. The client asks Jose about a hold harmless agreement provision and the effects of the provision on the liability of the client. To best comply with Rule 6.2 of the Code of Professional Conduct concerning knowing the legal limitations of one's profession, Jose should

Select one:

A. Recommend the client ask an attorney licensed in the neighboring state.

B. Explain the potential liability to the best of his ability.

C. Call the underwriter on the account for his or her opinion on the liability.

D. Call an adjuster in the neighboring state for his or her opinion on the liability.

4.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

Select one:

A. Seek permission from his employer to present the position of his company.

B. Present objective information on the pros and cons of the legislation without taking a position.

C. Present his opinion on the legislation clearly noting it is his opinion and may or may not be the position of his company.

D. Obtain and present the position of the insurance trade association to which his employer belongs.

5.Jake is a personal lines insurance producer who recently obtained the CPCU designation. It was a struggle for Jake to complete the CPCU courses, and he feels that he has done enough studying in his career. Jake's supervisor regularly circulates trade journal articles about proposed insurance legislation, new regulations, changing market conditions, and new products and services. Jake feels that, as a CPCU, he is fully qualified to meet his clients' needs without all that extra reading, which he feels takes away from the time he should be spending with customers. Which one of the following best describes the application of Canon 7 of the Code of Professional Conduct as it relates to keeping abreast of insurance developments?

Select one:

A. Jake is not in compliance because Canon 7 specifically requires CPCUs to read trade journals.

B. Jake is in compliance with Canon 7 because he has completed his CPCU designation.

C. Canon 7 does not apply to this situation.

D. Jake may be in violation of Canon 7 because he is not keeping current.