CPCU Ethics Test Questions and Answers Already Passed

CPCU Ethics Test Questions and Answers Already Passed Ethical behavior is based on reasoned consideration of all issues surrounding a conflict Morality is universal and basic to human relationships Maintaining high ethical standards is best associated with knowledge of law and regulations The Sarbanes-Oxley federal law requires that publicly traded companies identify principal ethics officers, create anonymous hotlines for reporting unethical behavior, and establish codes of ethics. Enforceable components of the CPCU Code of Professional Conduct are the Guidelines and Rules. Lloyd is a commercial property underwriter at Insurance Company (IC). Two years ago, he completed his studies and obtained the CPCU designation. Due to recent changes in workers compensation legislation in one of the states in which IC operates, the insurer has arranged for a one-day seminar to explain the changes and the impact they will have on underwriting and claim settlement. Considering Lloyd's obligations under the Code of Professional Conduct (the Code), which one of the following statements is correct? Choose one answer. A. Lloyd is required to complete any training made available by his employer. B. Because Lloyd has his CPCU, further training is considered unnecessary. C. The Code requires Lloyd to remain current on all changes in insurance legislation. D. Because the seminar is not directly related to Lloyd's job, he is not obliged to attend. D. Because the seminar is not directly related to Lloyd's job, he is not obliged to attend. Ming is the chief actuary at ABC Insurance and a CPCU. Ming has developed a new method for calculating incurred but not reported losses (IBNR). He has tested the method over a number of years and has found it to be much more accurate than the traditional method used by most actuaries. Because the new method gives Ming more confidence in the accuracy of his rate- making data, it allows ABC to charge lower rates than its competitors. This in turn gives ABC a marketing advantage. Which one of the following best describes Ming's obligations under Canon 5 of the Code of Professional Ethics regarding raising the professional standards of the insurance profession? Choose one answer. A. The new IBNR calculation method constitutes a trade secret and Ming is under no obligation to divulge it. B. Because the new method could benefit consumers in terms of lower rates, Ming is required to share it with other insurers. A. The new IBNR calculation method constitutes a trade secret and Ming is under no obligation to divulge it. Elin is a surety producer and a CPCU. She regularly deals with legal and accounting information. She notices that certain financial information provided by a contractor shows a deteriorating financial position. To best comply with