ETHICS 311 COMPREHENSIVE ANSWERS AND
QUESTIONS SET A+
✔✔Physical barriers to ethical decision making: - ✔✔Prevent a professional from
developing factual information about the ethical dilemma through restraints, restrictions
to access, or stumbling blocks to uncovering the truth about the situation or the people
associated with the dilemma.
✔✔Procedural barriers to ethical decision making: - ✔✔Arise when the processes for
resolving conflicts hinder the identification, careful consideration, or resolution of ethical
dilemmas or when no systematic approaches apply to resolving these dilemmas.
✔✔Administrative barriers to ethical decision making: - ✔✔Create hurdles when
individuals are unable or unwilling to follow good decision-making processes.
Administrative Failures occur for a number of reasons, including a perceived lack of
authority, fear of repercussions, and cultural disparity.
✔✔Insurance and other professional organizations have developed codes of ethics and
conduct to assist their employees or members. These codes can comprise many
components, including these: - ✔✔-A statement of the organization's values, which
professionals should uphold in the fulfillment of their job duties.
-A description of how the values of the organization correlate with the responsibilities of
each of the stakeholders in the organization
-Confirmation that all regulatory rules and statutes should be followed explicitly.
-Acknowledgement of the importance of each employee or member in achieving the
organization's goals and objectives.
-Descriptions of conflicts to be avoided, such as ownership of or personal interest in a
company that is a service provider to the organization, or rules governing hiring or
supervising immediate family members.
-A process for reporting perceived conflicts that will maintain the anonymity of the
reporting party, such as an ethics hotline or an appointed third party.
✔✔A code of ethics provides significant benefits to risk and insurance professionals in
organizations that develop and support adherence to a code. Some ways that ethics
, codes can provide support for overcoming procedural barriers include these: - ✔✔-
Introduction and reinforcement of organizational values by creating a climate of integrity
and excellence.
-Support of compliance with regulations by informing stakeholders that the organization
requires lawful behavior.
-Guidance for risk and insurance professionals in the "gray areas" by providing
examples of unethical conduct and appropriate responses to inappropriate behavior.
-Communication of expectations to stakeholders with respect to the influence of high
ethical standards on activities and relationships.
-Reduction of the possibility of inconsistent management standards by setting a base for
oversight and leadership goals that are to be upheld by all individuals in supervisory or
management positions.
-Building of public trust and enhancement of the reputation of the organization and its
stakeholders.
-Enhancement of morale, employee loyalty, and recruitment of top talent who want to be
associated with an organization that espouses high ethical standards.
-Promotion of constructive social change by raising awareness of ethical issues and
articulating means for dealing with ethical dilemmas.
-Promotion of market efficiency by rewarding the most ethical producers for adhering to
the code in the performance of their duties.
✔✔Ethics codes help risk and insurance professionals avoid procedural barriers by: -
✔✔Assisting them in considering all aspects of an ethical dilemma. By carefully
outlining and supporting defined procedures, ethics codes ensure that risk and
insurance professionals thoughtfully and carefully review, evaluate, and analyze all
aspects of a dilemma.
✔✔Which is NOT an example of a physical barrier to ethical decision making? -
✔✔Organizational values have not been articulated.
✔✔Administrative barriers can occur under these conditions: - ✔✔-When tools or
processes for making ethical decisions are not known.
-When the processes are cumbersome or overly complicated.
-When risk and insurance professionals fail to take the appropriate steps or actions
necessary, as outlined in the code of ethics to which they adhere.
✔✔(T/F) In reviewing an insured's financial statements, a claims professional found
several irregularities. If the claims professional reports the irregularities to management,
necessary additional work would delay file closure, causing the claims professional to
fail to meet production goals. This situation is an example of an administrative barrier. -
✔✔True.
✔✔Ethical Guidelines for Insurance Professionals is a compilation of principles for use
in guiding risk and insurance professionals to maintain high ethical standards in all they
QUESTIONS SET A+
✔✔Physical barriers to ethical decision making: - ✔✔Prevent a professional from
developing factual information about the ethical dilemma through restraints, restrictions
to access, or stumbling blocks to uncovering the truth about the situation or the people
associated with the dilemma.
✔✔Procedural barriers to ethical decision making: - ✔✔Arise when the processes for
resolving conflicts hinder the identification, careful consideration, or resolution of ethical
dilemmas or when no systematic approaches apply to resolving these dilemmas.
✔✔Administrative barriers to ethical decision making: - ✔✔Create hurdles when
individuals are unable or unwilling to follow good decision-making processes.
Administrative Failures occur for a number of reasons, including a perceived lack of
authority, fear of repercussions, and cultural disparity.
✔✔Insurance and other professional organizations have developed codes of ethics and
conduct to assist their employees or members. These codes can comprise many
components, including these: - ✔✔-A statement of the organization's values, which
professionals should uphold in the fulfillment of their job duties.
-A description of how the values of the organization correlate with the responsibilities of
each of the stakeholders in the organization
-Confirmation that all regulatory rules and statutes should be followed explicitly.
-Acknowledgement of the importance of each employee or member in achieving the
organization's goals and objectives.
-Descriptions of conflicts to be avoided, such as ownership of or personal interest in a
company that is a service provider to the organization, or rules governing hiring or
supervising immediate family members.
-A process for reporting perceived conflicts that will maintain the anonymity of the
reporting party, such as an ethics hotline or an appointed third party.
✔✔A code of ethics provides significant benefits to risk and insurance professionals in
organizations that develop and support adherence to a code. Some ways that ethics
, codes can provide support for overcoming procedural barriers include these: - ✔✔-
Introduction and reinforcement of organizational values by creating a climate of integrity
and excellence.
-Support of compliance with regulations by informing stakeholders that the organization
requires lawful behavior.
-Guidance for risk and insurance professionals in the "gray areas" by providing
examples of unethical conduct and appropriate responses to inappropriate behavior.
-Communication of expectations to stakeholders with respect to the influence of high
ethical standards on activities and relationships.
-Reduction of the possibility of inconsistent management standards by setting a base for
oversight and leadership goals that are to be upheld by all individuals in supervisory or
management positions.
-Building of public trust and enhancement of the reputation of the organization and its
stakeholders.
-Enhancement of morale, employee loyalty, and recruitment of top talent who want to be
associated with an organization that espouses high ethical standards.
-Promotion of constructive social change by raising awareness of ethical issues and
articulating means for dealing with ethical dilemmas.
-Promotion of market efficiency by rewarding the most ethical producers for adhering to
the code in the performance of their duties.
✔✔Ethics codes help risk and insurance professionals avoid procedural barriers by: -
✔✔Assisting them in considering all aspects of an ethical dilemma. By carefully
outlining and supporting defined procedures, ethics codes ensure that risk and
insurance professionals thoughtfully and carefully review, evaluate, and analyze all
aspects of a dilemma.
✔✔Which is NOT an example of a physical barrier to ethical decision making? -
✔✔Organizational values have not been articulated.
✔✔Administrative barriers can occur under these conditions: - ✔✔-When tools or
processes for making ethical decisions are not known.
-When the processes are cumbersome or overly complicated.
-When risk and insurance professionals fail to take the appropriate steps or actions
necessary, as outlined in the code of ethics to which they adhere.
✔✔(T/F) In reviewing an insured's financial statements, a claims professional found
several irregularities. If the claims professional reports the irregularities to management,
necessary additional work would delay file closure, causing the claims professional to
fail to meet production goals. This situation is an example of an administrative barrier. -
✔✔True.
✔✔Ethical Guidelines for Insurance Professionals is a compilation of principles for use
in guiding risk and insurance professionals to maintain high ethical standards in all they
