1.As a customer service representative for an insurance agency, Carlos considers himself an insurance practitioner who wants to do well at his job. A successful insurance practitioner must exhibit professionalism because of which one of the following public needs?

Select one:

A. A high level of trust

B. A high level of need for insurance

C. A high level of insurance product knowledge

D. A high level of regulation of the business

2.Which one of the following statements is correct?

Select one:

A. The opportunity for preferred rates generally does not motivate individuals and organizations to become more responsible in their actions.

B. Because insurers' investments are heavily regulated, they cannot be used to support social responsibility or improve the lives of others.

C. There is little insurance companies can do to fuel the country's economic engines or enable the growth of commerce.

D. Insurance professionals who search for correlations between activities and reductions in losses, and who then develop preferred rates, are meeting their social responsibilities.

3.The first steps toward maintaining high ethical standards are to

Select one:

A. Consider whether coverage is appropriate and whether a fair premium is charged.

B. Have knowledge of the law and abide by legal and regulatory requirements.

C. Provide guidance and parameters for acceptable behavior to protect the public interest.

D. Identify a social need and the industry's responsibility to meet that need.

4.Penny is in the marketing department at Insurance Company. Which one of the following is an important truth for her to know?

Select one:

A. Maintaining high ethical standards cannot directly result in an increase in an organization's overall profitability.

B. Organizations that focus on short-term profits and fail to adhere to high ethical standards often do so at the expense of their long-term success.

C. Organizations with high ethical standards and those without such high standards are equally susceptible to allegations of negligence that could lead to tort actions.

D. Consumers are more concerned with short-term relationships than about authentic relationships with companies with high ethical standards.

5.Which one of the following statements is correct?

Select one:

A. Underwriters must balance the customer's need for a fair price and comprehensive coverage with the insurer's profit goals.

B. Claim representatives should carefully determine the value of each claim and never pay insureds or claimants more than that value.

C. Agents are paid on a commission basis because their responsibility to insurers is to sell as many policies as possible.

D. Insurance professionals have a responsibility to insure any and all risks, regardless of the effect this has on insurer profitability.