Ethics 311 Exam With Complete Solutions
Latest Update 2025-2026
Which of the following has the potential to create an ethical dilemma?
A.) failing to pay premiums on time
B.) buying insurance from the company through the agent or broker paying the highest
commission
C.) exaggerating a proof of loss
D.) misrepresenting educational background - ANSWER B.) buying insurance from the
company through the agent or broker paying the highest commission
The ability to integrate and apply knowledge regarding risk and insurance to situations
is acquired through - ANSWER Professional study and practice
An insurance professional is responsible for his or her thoughts, decisions and actions.
Knowledge, skill and expertise guide decisions and ensure that the insurance
professional uses his or her - ANSWER Professional judgement
Unselfish concern for the welfare of others is referred to as - ANSWER Altruism
Penny is in the marketing department at insurance company. Which one of the following
is an important truth for her to know?
A.) there is no way an organization can increase overall profitability directly by
sustaining high ethical standards.
B) Organizations that have high ethical standards as well as organizations devoid of
high ethical standards are equally vulnerable to claims of negligence that could result in
the rise of torts.
C) Organizations that have a key objective of maximizing short-term profits while at the
same time fail to sustain high ethical standards usually do it at their own risk in the long
run.
, D) consumers are more concerned with short term relationships than about authentic
relationships with companies with high ethical standards - ANSWER C) 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.
All of the following are factors insurance professionals must balance with their
responsibility to insurers, EXCEPT
A) customer's need for a fair price
B.) Insurance professionals' need to maximize personal income
C.) Insurance professionals, duty to Market adequate coverage at a fair profit
D.) customers' needs for comprehensive coverage - ANSWER B.) Insurance
professionals' need to maximize personal income
T/F As a broker Josh has a responsibility only to his clients, the policyholders - ANSWER
False
Oliver is a reinsurance intermediary placing reinsurance for a variety of insurers with a
variety of reinsurers. He has no contact with the public or policyholders of the insurers
for which he places reinsurance. In this position, Oliver's duties are best described as
emanating from which of the following?
A) Oliver only owes his duties to the insurers for which he places business and the
reinsurance
B.) Oliver continues to have high level responsibilities to the public and to the
policyholders of the primary insurers
C.) Oliver's responsibilities extend only to the insurers with which he places business
D) Oliver has principal responsibilities to the insurance regulators overseeing
reinsurance - ANSWER B.) Oliver continues to have high level responsibilities to the
public and to the policyholders of the primary insurers
The first step in resolving ethical dilemmas is information gathering which begins with -
ANSWER Identifying stakeholders
Elmer is a commercial underwriter at the ABC Insurance Company. Among other things,
Elmer and one of his coworkers, Jeff, frequently play golf together at the local public
course. One weekend, Jeff suggests they instead play at an very expensive private club.
He tells Elmer that the owner of a new commercial account Jeff wrote recently gave Jeff
Latest Update 2025-2026
Which of the following has the potential to create an ethical dilemma?
A.) failing to pay premiums on time
B.) buying insurance from the company through the agent or broker paying the highest
commission
C.) exaggerating a proof of loss
D.) misrepresenting educational background - ANSWER B.) buying insurance from the
company through the agent or broker paying the highest commission
The ability to integrate and apply knowledge regarding risk and insurance to situations
is acquired through - ANSWER Professional study and practice
An insurance professional is responsible for his or her thoughts, decisions and actions.
Knowledge, skill and expertise guide decisions and ensure that the insurance
professional uses his or her - ANSWER Professional judgement
Unselfish concern for the welfare of others is referred to as - ANSWER Altruism
Penny is in the marketing department at insurance company. Which one of the following
is an important truth for her to know?
A.) there is no way an organization can increase overall profitability directly by
sustaining high ethical standards.
B) Organizations that have high ethical standards as well as organizations devoid of
high ethical standards are equally vulnerable to claims of negligence that could result in
the rise of torts.
C) Organizations that have a key objective of maximizing short-term profits while at the
same time fail to sustain high ethical standards usually do it at their own risk in the long
run.
, D) consumers are more concerned with short term relationships than about authentic
relationships with companies with high ethical standards - ANSWER C) 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.
All of the following are factors insurance professionals must balance with their
responsibility to insurers, EXCEPT
A) customer's need for a fair price
B.) Insurance professionals' need to maximize personal income
C.) Insurance professionals, duty to Market adequate coverage at a fair profit
D.) customers' needs for comprehensive coverage - ANSWER B.) Insurance
professionals' need to maximize personal income
T/F As a broker Josh has a responsibility only to his clients, the policyholders - ANSWER
False
Oliver is a reinsurance intermediary placing reinsurance for a variety of insurers with a
variety of reinsurers. He has no contact with the public or policyholders of the insurers
for which he places reinsurance. In this position, Oliver's duties are best described as
emanating from which of the following?
A) Oliver only owes his duties to the insurers for which he places business and the
reinsurance
B.) Oliver continues to have high level responsibilities to the public and to the
policyholders of the primary insurers
C.) Oliver's responsibilities extend only to the insurers with which he places business
D) Oliver has principal responsibilities to the insurance regulators overseeing
reinsurance - ANSWER B.) Oliver continues to have high level responsibilities to the
public and to the policyholders of the primary insurers
The first step in resolving ethical dilemmas is information gathering which begins with -
ANSWER Identifying stakeholders
Elmer is a commercial underwriter at the ABC Insurance Company. Among other things,
Elmer and one of his coworkers, Jeff, frequently play golf together at the local public
course. One weekend, Jeff suggests they instead play at an very expensive private club.
He tells Elmer that the owner of a new commercial account Jeff wrote recently gave Jeff
