ETHICS 311- ETHICAL DECISION MAKING IN RISK AND INSURANCE QUESTIONS WITH CORRECT ANSWERS

ETHICS 311: ETHICAL DECISION MAKING IN
RISK AND INSURANCE QUESTIONS WITH
CORRECT ANSWERS 2026-2027
Morals - CORRECT ANSWER -Making distinction between right and wrong



Laws - CORRECT ANSWER -Legal tenants



Ethics - CORRECT ANSWER -
Knowing what to do when a situation presents more than one "right" answer



Supporting Professionalism - CORRECT ANSWER -1. High Ethical Standards

2. Professional Competence

3. Sense of Altruism

4. Commitment to Continuing Education

5. Participation in an Association or a Society

6. Ability to Think and Act Independently

7. Public recognition as a Professional



High Ethical Standards - CORRECT ANSWER -
Standard of "utmost good faith" to ensure ethical nature of relationship between insureds
and insurers



Professional Competence - CORRECT ANSWER -
Ability to apply knowledge to risk and insurance circumstances is acquired through professi
onal training and job experience



Altriusm - CORRECT ANSWER -Unselfish concern for the welfare of others

, Maintaining High Ethical Standards - CORRECT ANSWER -1. Regulatory Requirements
X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2




2. Social Responsibility X 2




3. Economic Outcomes X 2




Regulatory Requirements - CORRECT ANSWER - X 2 X 2 X 2 X 2 X 2




Fiduciary Duty = Enhanced level of trust, arising from statutory rules and regulations or b
X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2




e impacted by rulings and interpretations of the courts
X2 X 2 X 2 X 2 X 2 X 2 X 2 X 2




Social Responsibility - CORRECT ANSWER -
X 2 X 2 X 2 X 2 X 2




Expectations that compel organizations to focus on goals and objectives on long term surv
X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2




iv al and sustained growth
X2 X 2 X 2 X 2




Economic Outcomes - CORRECT ANSWER -Better reputations -
X 2 X 2 X 2 X 2 X 2 X 2 X 2




better recruiting and skilled employees
X2 X 2 X 2 X 2 X 2




Ethical Responsibility to Groups - CORRECT ANSWER -1. Insurers
X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2




2. Policyholders

3. The Public X 2




Insurers - CORRECT ANSWER - X 2 X 2 X 2 X 2




Provide customers with protection from financial loss by managing risk exposures
X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2




2 ways insurers have direct contact with public - CORRECT ANSWER -
X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2




1. Purchase of insurance coverage initiates responsibility to the policyholders
X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2




2. Policy language creates contractual obligations that are fulfilled when a loss event occu
X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2 X 2




rs and results in a claim
X2 X 2 X 2 X 2 X 2