WEBCE ETHICS CORE MAIN ANSWERS AND
QUESTIONS SET A+
✔✔Brown Insurance Company's current property policies pay to replace the property
with components of like kind and quality. Brown Insurance Company is debating
whether to modify its policies to cover the added cost of replacing dated building
components that have been damaged by a covered peril with more expensive
components that are kinder to the environment. Some company officials oppose the
idea of improving policyholders' property at the expense of their insurer and predict that
fraud and inflated claims will result. This is an example of what ethical issue insurers
often face? - ✔✔Use of costly resources
✔✔After 9 months as a claims adjuster, Shannon is depressed. She tries very hard to
be fair, but it seems she can't do anything right. Half the time, the claimant is dissatisfied
with her settlement, and the rest of the time, she faces criticism from her supervisor.
Unless other factors are at work, this information seems to indicate that - ✔✔Shannon is
doing a good job.
✔✔Superhero Builders has purchased all the homes on Lois Lane in a depressed area
of Metropolis and plans to tear them down and replace them with new, modern
townhouses that will attract a more affluent group of residents. You are told not to insure
Superhero's project because it is located in a "bad area" of Metropolis. This is an
example of - ✔✔redlining, which is illegal
✔✔According to Black's Law Dictionary, good faith encompasses all the following
attributes EXCEPT: - ✔✔freedom of religion
✔✔After closing the file, Rhea discovered that she had made a mistake and paid a
claim that should not have been covered. What would you advise her to do? - ✔✔Tell
her supervisor and ask for help
✔✔Suppose you are a premium auditor who finds a classification error in a policy
previously handled by Clint, another premium auditor. Clint is your mentor. He trained
you and helped you succeed. Clint's error caused the insured to pay a much higher
, premium than he would have paid if the exposure had properly been classified. What is
the best thing to do first in addressing this error? - ✔✔Talk to Clint and find out how he
decided on the current classification
✔✔Richard Eyre, an English theater director, made a profound statement that is
particularly relevant to insurance professionals when he identified a principle that is "at
the heart of all decent work." Eyre was, of course, referring to the concept of - ✔✔acting
in good faith
✔✔An insurance underwriter should be able to trust that the insured will do all the
following EXCEPT: - ✔✔withhold unfavorable information
✔✔As a CPCU, Luella is serious about her pledge to understand the interests of others
and even place them above her own. As an insurance professional, she should
frequently be asking herself all the following questions EXCEPT: - ✔✔How much time
can I afford to give this client?
✔✔The concepts of good faith and fair dealing arise from contract law, but they are
especially important with insurance because it is "a forward promise." Why is it said that
insurance is a forward promise? - ✔✔People pay a premium today and expect coverage
tomorrow
✔✔With regard to insurance transactions, failure to comply with the duty of good faith
and fair dealing does not result in costs that are - ✔✔imaginary.
✔✔What state standards, based on the National Association of Insurance
Commissioners (NAIC) model acts, specify minimum guidelines that insurance claims
adjusters are required to follow in fulfilling their duties? - ✔✔Unfair claims settlement
practices acts
✔✔Raphael Company bought workers compensation and general liability insurance
from Colossal Casualty Insurance Company. Colossal Casualty can rightfully expect
Raphael to perform all the following duties EXCEPT: - ✔✔create the policy language
that reflects Raphael's coverage needs
✔✔Which one of the following words is not a synonym for "fair" that one might find in a
thesaurus? - ✔✔Foul
✔✔A witness who described an auto accident had no connection or relationship to
either driver; she just happened to be there when the accident occurred. A jury will
probably believe this witness will present a fair account of what happened because the
witness is - ✔✔detached.
QUESTIONS SET A+
✔✔Brown Insurance Company's current property policies pay to replace the property
with components of like kind and quality. Brown Insurance Company is debating
whether to modify its policies to cover the added cost of replacing dated building
components that have been damaged by a covered peril with more expensive
components that are kinder to the environment. Some company officials oppose the
idea of improving policyholders' property at the expense of their insurer and predict that
fraud and inflated claims will result. This is an example of what ethical issue insurers
often face? - ✔✔Use of costly resources
✔✔After 9 months as a claims adjuster, Shannon is depressed. She tries very hard to
be fair, but it seems she can't do anything right. Half the time, the claimant is dissatisfied
with her settlement, and the rest of the time, she faces criticism from her supervisor.
Unless other factors are at work, this information seems to indicate that - ✔✔Shannon is
doing a good job.
✔✔Superhero Builders has purchased all the homes on Lois Lane in a depressed area
of Metropolis and plans to tear them down and replace them with new, modern
townhouses that will attract a more affluent group of residents. You are told not to insure
Superhero's project because it is located in a "bad area" of Metropolis. This is an
example of - ✔✔redlining, which is illegal
✔✔According to Black's Law Dictionary, good faith encompasses all the following
attributes EXCEPT: - ✔✔freedom of religion
✔✔After closing the file, Rhea discovered that she had made a mistake and paid a
claim that should not have been covered. What would you advise her to do? - ✔✔Tell
her supervisor and ask for help
✔✔Suppose you are a premium auditor who finds a classification error in a policy
previously handled by Clint, another premium auditor. Clint is your mentor. He trained
you and helped you succeed. Clint's error caused the insured to pay a much higher
, premium than he would have paid if the exposure had properly been classified. What is
the best thing to do first in addressing this error? - ✔✔Talk to Clint and find out how he
decided on the current classification
✔✔Richard Eyre, an English theater director, made a profound statement that is
particularly relevant to insurance professionals when he identified a principle that is "at
the heart of all decent work." Eyre was, of course, referring to the concept of - ✔✔acting
in good faith
✔✔An insurance underwriter should be able to trust that the insured will do all the
following EXCEPT: - ✔✔withhold unfavorable information
✔✔As a CPCU, Luella is serious about her pledge to understand the interests of others
and even place them above her own. As an insurance professional, she should
frequently be asking herself all the following questions EXCEPT: - ✔✔How much time
can I afford to give this client?
✔✔The concepts of good faith and fair dealing arise from contract law, but they are
especially important with insurance because it is "a forward promise." Why is it said that
insurance is a forward promise? - ✔✔People pay a premium today and expect coverage
tomorrow
✔✔With regard to insurance transactions, failure to comply with the duty of good faith
and fair dealing does not result in costs that are - ✔✔imaginary.
✔✔What state standards, based on the National Association of Insurance
Commissioners (NAIC) model acts, specify minimum guidelines that insurance claims
adjusters are required to follow in fulfilling their duties? - ✔✔Unfair claims settlement
practices acts
✔✔Raphael Company bought workers compensation and general liability insurance
from Colossal Casualty Insurance Company. Colossal Casualty can rightfully expect
Raphael to perform all the following duties EXCEPT: - ✔✔create the policy language
that reflects Raphael's coverage needs
✔✔Which one of the following words is not a synonym for "fair" that one might find in a
thesaurus? - ✔✔Foul
✔✔A witness who described an auto accident had no connection or relationship to
either driver; she just happened to be there when the accident occurred. A jury will
probably believe this witness will present a fair account of what happened because the
witness is - ✔✔detached.
