1.Which one of the following sections of the Code of Professional Conduct expresses the general concepts and principles that it contains?

Select one:

A. Rules

B. Guidelines

C. Advisory Opinions

D. Canons

2.Matt, a CPCU, is an automobile claims adjuster with ABC Insurance. He is assigned a claim involving Ted, an ABC insured, and Marina, a third-party claimant. Ted had not seen a stop sign and hit Marina's car broad-side in the middle of the intersection. There was damage to both vehicles and although Ted was not injured, Marina suffered soft tissue injuries to her neck and back and will be off work for an estimated twelve weeks. Which one of the following should Matt do to comply with the CPCU Code of Professional Conduct?

Select one:

A. Settle both parties' claims but give preferential treatment to Marina because she is the victim in this case.

B. Attempt to settle both parties' claims for as little as possible in order to save ABC money.

C. Settle both parties' claims, but give Ted preferential treatment as he is ABC's customer.

D. Ensure that both Ted's and Marina's claims are settled promptly, equitably, and fairly.

3.Margaret, a CPCU, is the owner of City Insurance Brokers. When one of her personal lines carriers, ABC Insurance, cancels Margaret's agency contract due to lack of sales volume, Margaret is faced with replacing the few clients she had insured with ABC with another carrier. She discovers she can find competitive quotes for most of these clients with other insurers that she represents. However, in the case of three customers, replacing their coverage will result in premium increases of several hundred dollars. Margaret knows that another brokerage in town, West End Insurance, has placed a significant volume of business with ABC Insurance. Which one of the following should Margaret do to comply with the CPCU Code of Professional Conduct?

Select one:

A. Tell the three clients that she is unable to replace their coverage with any of her other carriers.

B. Provide her best quote and tell the clients to go to West End if they wish to stay insured with ABC.

C. Provide her best quote and advise the three clients that ABC no longer writes in the area.

D. Replace the three clients' coverage at the higher premium and say nothing.

4.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?

Select one:

A. Because Lloyd has his CPCU, further training is considered unnecessary.

B. Lloyd is required to complete training made available by his employer.

C. Because the seminar is not directly related to Lloyd's job, he is not obliged to attend.

D. The Code requires Lloyd to remain current on all changes in insurance legislation.

5.Janice is a CPCU employed by an insurance company. She began her career as an underwriter and underwriting manager, but for the past ten years she has worked in human resources. She was recently promoted to Vice President of Human Resources. Janice has decided to take a university course in the coming semester. Which one of the following courses would help Janice best comply with her obligations under the Code of Professional Conduct?

Select one:

A. Employee development

B. Statistics

C. History of insurance

D. Risk management