1.Bernice is a claim adjuster with Insurance Company (IC). She has been assigned a liability claim against IC's policyholder, Garth. The claimant, Calvin, alleges that while at a party hosted by Garth, he became uncharacteristically intoxicated due to the strength of the drinks Garth was mixing and serving. As a result of his intoxication, he fell down the stairs at Garth's house, breaking his back. The injury has left Calvin paraplegic. In Bernice's opinion, Garth is fully liable under state law for Calvin's disability. Which one of the following statements best describes Bernice's responsibilities in this situation?

Select one:

A. She should pay Calvin enough to prevent him from filing suit and causing the insurer to incur extensive legal expenses.

B. She should discuss the claim with Garth and determine how he would like to see it handled in terms of settling or going to court.

C. She should consider the case from the perspective of IC, which wants the claim resolved for the least amount possible.

D. She should consider and evaluate Calvin's pain and suffering, and make a fair offer in settlement of the loss.

2.An insurance professional who focuses on the goals of society instead of his or her own goals is best serving the needs of which one of the following groups?

Select one:

A. The public

B. Policyholders

C. Insurers

D. Government

3.Harold is a commercial lines underwriting manager with Insurance Company (IC). Selina, a top-notch member of Harold's underwriting unit, is married to Martin, an insurance producer at a brokerage with which IC has an agency agreement. During an underwriting audit, IC's head office audit team notices that Selina has been consistently underpricing accounts for the brokerage at which Martin works. The underpricing has not had an adverse affect on either the brokerage's or IC's loss ratio. The audit team brings the matter to Harold's attention and asks that he resolve it as he sees fit. This presents an ethical dilemma for Harold. He is concerned about the apparent favoritism Selina is showing, but he feels she is a skilled underwriter and so far the loss ratios have not suffered. Which one of the following best identifies one of the principal stakeholders or group of stakeholders in this dilemma?

Select one:

A. The members of the head office audit team

B. The underwriters in units other than Harold's

C. The human resources department of IC

D. The other brokerages that Selina underwrites

4.Alicia is a high school graduate who works as an underwriting assistant at ABC Insurance Company. Alicia enjoys her job and hopes to be promoted to underwriter within the next few years. She discussed the possibility with her supervisor during her performance review and her supervisor was supportive. However, the supervisor explained that ABC's requirement is that underwriters have either a college education or a professional designation in underwriting. Alicia feels that obtaining either one will be challenging and time-consuming, but she is not prepared to give up her hopes of promotion. Which one of the following types of ethical conflicts does this situation most clearly represent?

Select one:

A. Justice versus mercy

B. Individual versus community

C. Truth versus loyalty

D. Long-term versus short-term

5.Kendra is an insurance producer at Wayside Insurance Brokerage. ABC Insurance Company, one of the insurers that Wayside represents, has announced an incentive bonus. Any brokerage that exceeds its sales goals with ABC will be entered in a drawing. The employees at the winning brokerage will enjoy an all-expenses paid trip for themselves and their spouses to Paris for a week. This presents an ethical dilemma for Kendra. While she knows that ABC provides quality products and services, she is concerned that the company's premiums are typically ten to fifteen percent higher than those of other insurers of similar quality and underwriting stance as ABC. Which one of the following best identifies one of the principal stakeholders or groups of stakeholders in this dilemma?

Select one:

A. Kendra's friends and family

B. ABC's underwriting staff

C. New insurance applicants at Wayside Insurance

D. Wayside's personnel manager