CPCU ETHICS 2025 CERTIFIED STUDY EXAM QUESTIONS
WITH CORRECT AND VERIFIED ANSWERS ||AWARDED A+||
Managers and leaders of companies must learn to make these decisions
on a daily basis with the understanding that even if there are - ANSWER-
short-term costs, there are long-term profits based on good ethical
behavior.
living ethically - ANSWER-establishes you as a fair and just person and as
an individual to be trusted as a member of the community and as an
insurance professional
Your reputation - ANSWER-one of your most valuable assets in growing
your customer base as a producer.
It also establishes you as a valuable employee asset within your company,
a peer to be trusted and relied upon and employee who exemplifies the
ethical standards set forth in the company's value statement
If each entity in this grouping (the producers, employees, managers; the
companies, and the industry) act according to the accepted ethical
standards and guidelines established - ANSWER-then the industry and all
the players that operate within it will be successful.
3 primary categories of unethical practices - ANSWER-1st: If a company
acts in an unethical manner, it erodes the trust that its customers had in it,
and once this trust is eroded, the company's reputation is severely
damaged.
2nd: unethical companies attract unethical employees. The net result is that
the company may never be able to right itself and reestablish its reputation.
3rd: the complete breakdown in trust between the employees and the
company
Ethical treatment of valued customers should include all of the following,
EXCEPT: - ANSWER-dealing in cash only
,CorrectEthical treatment of valued customers should include honest
advertising, consistent product availability, accurate and fair pricing, clear
instructions for product use, easy availability of friendly customer service,
and prompt recall of products found to be defective or harmful
Managers who do not have a well-defined ethical value system have not
developed the consistent pattern of thinking required to act decisively and
with __________ when faced with an ethical dilemma. - ANSWER-
confidence
A manager with a well-defined and developed ethical value system tends to
make decisions _______________. - ANSWER-based on the best interest
of the consumer
Ethical treatment of valued customers should include all of the following,
EXCEPT: - ANSWER-cutting special deals
The law usually treats receipt of premium by an appointed broker as
______________. - ANSWER-binding the carrier to that risk if the carrier
itself had received it
Reestablishing a company's reputation - ANSWER-starts with managers
and leaders who redefine the company's value statement and then put in
place the means to inform, educate, and encourage employees to
implement those values internally within the organization and externally
with the company's customers
Secondly, company leaders and managers must take a proactive approach
to identifying and rectifying any leftover traces of unethical behavior with
the organization.
Thirdly, once core practices that may result in unethical behavior are
identified, companies must develop both the processes and education
required to displace those unethical behaviors
Fourth, once a company has made the strides required to clean itself up
internally and to gain back some of the trust of its employees, it needs to
turn its attention to repairing its reputation with both its customers and with
the community that surrounds it.
Fifth, specific programs should be developed to reintroduce products and
services designed to appeal to its customers.
, Our public responsibility requires - ANSWER-that we be aware of and
abide by the law and regulations
For businesses - ANSWER-consistently demonstrating honesty and
integrity is essential
Your decisions and your actions - ANSWER-reflect your ethical standards
It's up to you - ANSWER-to make sure that your decisions are determined
by your ethical standards and not by the momentary conditions presenting
conflicting challenges. This requires preparation and dedication
Requirements - ANSWER-taking responsibility for your actions, and
discipline
Taking responsibility means: - ANSWER-sometimes you have to take an
action even when it's the harder thing to do, keeping promises whether or
not it's convenient
You have to make the decision - ANSWER-to do what is right before you
have the opportunity to compromise
The question isn't - ANSWER-"What's my chance of getting caught?" The
question is, "Am I an honest person?"
Tips that can help avoid some of the traps that can lead you to unethical
behavior - ANSWER-1. Become a student of your business. Know the rules
and regulations. Be especially cognizant of specific state regulations and
laws.
2. Know your company well by becoming fully knowledgeable of its
mission, vision, and corporate values statements.
3. Make it a point to learn about the company's rules and regulations
regarding relationships with other producers or brokers, or the company's
policy toward taking gifts or entertainment.
4. Make certain that you don't let commissions and incentive packages
drive you to treat your customers in an unethical manner.
The key is to educate yourself about your business, your products, your
company, and your customer, and to always use your ability to reason
critically to drive the decisions that you make.
WITH CORRECT AND VERIFIED ANSWERS ||AWARDED A+||
Managers and leaders of companies must learn to make these decisions
on a daily basis with the understanding that even if there are - ANSWER-
short-term costs, there are long-term profits based on good ethical
behavior.
living ethically - ANSWER-establishes you as a fair and just person and as
an individual to be trusted as a member of the community and as an
insurance professional
Your reputation - ANSWER-one of your most valuable assets in growing
your customer base as a producer.
It also establishes you as a valuable employee asset within your company,
a peer to be trusted and relied upon and employee who exemplifies the
ethical standards set forth in the company's value statement
If each entity in this grouping (the producers, employees, managers; the
companies, and the industry) act according to the accepted ethical
standards and guidelines established - ANSWER-then the industry and all
the players that operate within it will be successful.
3 primary categories of unethical practices - ANSWER-1st: If a company
acts in an unethical manner, it erodes the trust that its customers had in it,
and once this trust is eroded, the company's reputation is severely
damaged.
2nd: unethical companies attract unethical employees. The net result is that
the company may never be able to right itself and reestablish its reputation.
3rd: the complete breakdown in trust between the employees and the
company
Ethical treatment of valued customers should include all of the following,
EXCEPT: - ANSWER-dealing in cash only
,CorrectEthical treatment of valued customers should include honest
advertising, consistent product availability, accurate and fair pricing, clear
instructions for product use, easy availability of friendly customer service,
and prompt recall of products found to be defective or harmful
Managers who do not have a well-defined ethical value system have not
developed the consistent pattern of thinking required to act decisively and
with __________ when faced with an ethical dilemma. - ANSWER-
confidence
A manager with a well-defined and developed ethical value system tends to
make decisions _______________. - ANSWER-based on the best interest
of the consumer
Ethical treatment of valued customers should include all of the following,
EXCEPT: - ANSWER-cutting special deals
The law usually treats receipt of premium by an appointed broker as
______________. - ANSWER-binding the carrier to that risk if the carrier
itself had received it
Reestablishing a company's reputation - ANSWER-starts with managers
and leaders who redefine the company's value statement and then put in
place the means to inform, educate, and encourage employees to
implement those values internally within the organization and externally
with the company's customers
Secondly, company leaders and managers must take a proactive approach
to identifying and rectifying any leftover traces of unethical behavior with
the organization.
Thirdly, once core practices that may result in unethical behavior are
identified, companies must develop both the processes and education
required to displace those unethical behaviors
Fourth, once a company has made the strides required to clean itself up
internally and to gain back some of the trust of its employees, it needs to
turn its attention to repairing its reputation with both its customers and with
the community that surrounds it.
Fifth, specific programs should be developed to reintroduce products and
services designed to appeal to its customers.
, Our public responsibility requires - ANSWER-that we be aware of and
abide by the law and regulations
For businesses - ANSWER-consistently demonstrating honesty and
integrity is essential
Your decisions and your actions - ANSWER-reflect your ethical standards
It's up to you - ANSWER-to make sure that your decisions are determined
by your ethical standards and not by the momentary conditions presenting
conflicting challenges. This requires preparation and dedication
Requirements - ANSWER-taking responsibility for your actions, and
discipline
Taking responsibility means: - ANSWER-sometimes you have to take an
action even when it's the harder thing to do, keeping promises whether or
not it's convenient
You have to make the decision - ANSWER-to do what is right before you
have the opportunity to compromise
The question isn't - ANSWER-"What's my chance of getting caught?" The
question is, "Am I an honest person?"
Tips that can help avoid some of the traps that can lead you to unethical
behavior - ANSWER-1. Become a student of your business. Know the rules
and regulations. Be especially cognizant of specific state regulations and
laws.
2. Know your company well by becoming fully knowledgeable of its
mission, vision, and corporate values statements.
3. Make it a point to learn about the company's rules and regulations
regarding relationships with other producers or brokers, or the company's
policy toward taking gifts or entertainment.
4. Make certain that you don't let commissions and incentive packages
drive you to treat your customers in an unethical manner.
The key is to educate yourself about your business, your products, your
company, and your customer, and to always use your ability to reason
critically to drive the decisions that you make.
