Joshua is insured with InsureCo through its agent, Olivia. He has an automobile and a commercial property policy with InsureCo. Joshua's son Harry, who lives at home, is driving the insured vehicle. He loses control and hits a guardrail causing $4,500 damage to the vehicle. Joshua asks Olivia for advice. Olivia knows that InsureCo's guidelines state that one at-fault accident, whether a claim is paid or not, results in an automatic premium increase of twenty-five percent. If Joshua pays for the damage himself the insurer may never know about the accident.

Olivia's decision is to advise InsureCo of the accident. Which one of the following decision-making tools is Olivia most likely using when she makes her decision?

 Select one:

A. Situation-based decision making

B. People-based decision making

C. Ethics-based decision making

D. Rules-based decision making

   Insurance Company (IC) provides company cars to claim managers who have metropolitan territories. The company's written policy is to use these vehicles only for business and there is a strict prohibition against having passengers for any reason whatsoever.

Claim manager Barb recently gave birth to a son. She would like to stop by her son's daycare center to pick him up daily. This would take her only five miles a day out of her way and this helps Barb save time and use of her own car. Barb rationalizes that the side trip actually benefits IC because it allows her to spend less time switching vehicles and more time at work and it allows Barb to be more focused on her claim files. Which one of the following statements is correct?

Select one:

A. From a rules-based decision analysis, the equities rule in favor of Barb using her company car to pick up her son from daycare.

B. Rules-based decision making always places people and situations first and it would justify a decision by Barb to use her company car to pick up her son from the daycare center.

C. Rules-based decision making recognizes that one rule does not fit all circumstances and would justify Barb's plans to use her company car to pick up her son from the daycare center.

D. From a rules-based decision analysis, it would be unethical for Barb to use her company car to pick up her son from daycare.

      Newman is a claim representative who is investigating coverage for a new claim. He quickly realizes that the policy sold to the insured was not the one the insured believes he purchased. There would be coverage if the right policy was provided, but as it is, there is no coverage. Newman could honor the claim as if it were brought under the policy the insured expected. Otherwise, the agent could face an error and omissions claim. If Newman considers all the possible decisions and outcomes for each and bases his final decision on who will be helped and who will be hurt, and to what degree, he is practicing

Select one:

A. Checklist-based decision making.

B. Situation-based decision making.

C. Rules-based decision making.

D. People-based decision making.