Ethics 311 Exam With Complete Solutions (A+)
Latest Update 2025-2026
ethical practice results in - ANSWER -Trust
-Positive public image
-Loyalty
-Referrals
-Profitability
Unethical practice leads to - ANSWER -Distrust
-Damage to reputation
-Loss of business
-Litigation and indictment
-Bankruptcy
Ethics - ANSWER Rules of behavior/principles supplied by a professional/social system
Morals - ANSWER Personal beliefs of right and wrong
Laws - ANSWER Institutionalized legal principles of what is/ isn't acceptable
What's the difference between making a decision based on morals, laws, or ethics?
-ANSWER-Morals involve making a choice based upon whether something is right or
wrong.
-Laws involve making decisions based upon written statutes given by a governing
authority.
, -Ethics involve adherence to standards set forth which serve as a guide to action when
there is no law to direct that action, and where more than one action might be deemed
"right" morally and legally.
Purpose of insurance laws and regulations - ANSWER -Preserve functional insurance
markets
-Conserve the interests of consumers
-Preserve insurer solvency
business ethics applied to insurance - ANSWER The insurance professional must:
-Adopt moral principles
-Be cognisant of both relevant laws and ethical standards
Apply moral values, rules and standards to business situations
Act right in the context of goods, services and relationships
Characteristics of a Professional- ANSWER -High moral standards
Professional Competence
Altruism
Commitment to ongoing learning
Membership in an association or society
Ability to think and act independently
Acknowledged/identified as a professional
Doctrine of utmost good faith - ANSWER -A principle that requires all parties to a
contract to act with good faith and to disclose all material information about the
transaction
-Insurance, financial, real estate and all other business markets
Altruism examples - ANSWER -Getting out at any hour of the night, including the middle
Latest Update 2025-2026
ethical practice results in - ANSWER -Trust
-Positive public image
-Loyalty
-Referrals
-Profitability
Unethical practice leads to - ANSWER -Distrust
-Damage to reputation
-Loss of business
-Litigation and indictment
-Bankruptcy
Ethics - ANSWER Rules of behavior/principles supplied by a professional/social system
Morals - ANSWER Personal beliefs of right and wrong
Laws - ANSWER Institutionalized legal principles of what is/ isn't acceptable
What's the difference between making a decision based on morals, laws, or ethics?
-ANSWER-Morals involve making a choice based upon whether something is right or
wrong.
-Laws involve making decisions based upon written statutes given by a governing
authority.
, -Ethics involve adherence to standards set forth which serve as a guide to action when
there is no law to direct that action, and where more than one action might be deemed
"right" morally and legally.
Purpose of insurance laws and regulations - ANSWER -Preserve functional insurance
markets
-Conserve the interests of consumers
-Preserve insurer solvency
business ethics applied to insurance - ANSWER The insurance professional must:
-Adopt moral principles
-Be cognisant of both relevant laws and ethical standards
Apply moral values, rules and standards to business situations
Act right in the context of goods, services and relationships
Characteristics of a Professional- ANSWER -High moral standards
Professional Competence
Altruism
Commitment to ongoing learning
Membership in an association or society
Ability to think and act independently
Acknowledged/identified as a professional
Doctrine of utmost good faith - ANSWER -A principle that requires all parties to a
contract to act with good faith and to disclose all material information about the
transaction
-Insurance, financial, real estate and all other business markets
Altruism examples - ANSWER -Getting out at any hour of the night, including the middle
