1.Clarence is a claims representative for a commercial liability insurer that has a code of conduct governing all employees. Its first rule is that employees shall "do the right thing" at all times.

Clarence is handling several claims that have been reported to the reinsurer. The reinsurer informed him that its auditor planned to visit to review those claim files and asked that the entire file for each be made available. Clarence knows he did a poor job writing the summaries in the files. He is embarrassed to have the representative see them, so he is contemplating hiding them during the audit. He does not think that they are relevant to the ultimate outcome of the claims anyway.

Which one of the following statements is true?

Select one:

A. Realizing that the outcomes of the claims are not affected by the summaries in any way, Clarence is justified in withholding them.

B. Clarence is a stakeholder as to the claims he handles and avoiding embarrassment could be the right thing to do.

C. Because he would not be breaking any law by hiding the summaries, Clarence is free to hide them from the auditor.

D. Clarence should look to the code of conduct for guidance and decide to provide the summaries even if they are not done well.

2.Larissa, an insurance underwriter, was eligible for promotion to a senior underwriting position. She became aware that her supervisor, Vicente, has been approving all business from one specific insurance agent whether the business met underwriting criteria or not. Vicente has a romantic relationship with the agent and the company is not aware of this.

The insurer requires all staff members to disclose possible conflicts of interest that come to their attention. Larissa wants to notify her company of this breach of ethics through its anonymous hotline but is aware that the hotline really is not anonymous and the supervisor will find out who notified them. Larissa was not sure what to and was afraid she would lose her chance of promotion if she reported Vicente.

Which one of the following types of barriers to ethical decision making is this situation most typical of?

Select one:

A. Systematic barrier

B. Procedural barrier

C. Stakeholder barrier

D. Administrative barrier

3.Administrative barriers may prevent an insurance professional from making ethical decisions. Administrative barriers occur under which one of the following conditions?

Select one:

A. When insufficient guidance is available regarding ethical behavior

B. When key documents have been destroyed.

C. When the processes are complicated and procedures are cumbersome

D. When witnesses are unavailable

4.Federal law requires that publicly traded companies identify principal ethics officers, anonymous hotlines for reporting unethical behavior, and

Select one:

A. Encourage and reward individuals for reporting unethical behavior.

B. Reward whistle blowers.

C. Publicly admonish those who are involved in unethical behavior.

D. Establish codes of ethics.

5.The CPCU Code of Professional Conduct includes

Select one:

A. Canons, Rules, and Advisory Opinions.

B. Rules, Advisory Opinions, and Disciplinary Rules.

C. Disciplinary Procedures, Canons, and Rules.

D. Advisory Opinions, Disciplinary Penalties, and Canons