CPCU Ethics Practice Questions
2025/2026 Exam All Answers and
Illustrations Given
Sadie, a new claims adjuster, was on the job just two months when she
recognized an ethical issue. She knew from her training that ethics concern
making often difficult decisions
Select one:
A. Between two or more right answers.
B. Based on legal obligations.
C. Between right and wrong.
D. Based on professional standards. - 🧠 ANSWER ✔✔A. Between two or
more right answers.
,Greater North American Insurance Company encounters a recurring claims
situation in which it can choose to pay out either of two different amounts
for any given situation, depending on the interpretation of the claim. There
are no regulations that directly address the issue. The policy they choose to
formulate will be primarily based on which one of the following?
Select one:
A. Principles
B. Ethics
C. Laws
D. Morals - 🧠 ANSWER ✔✔B. Ethics
Which one of the following situations primarily represents a moral, as
opposed to legal or ethical, failure?
Select one:
A. An agent continues to sell insurance coverage despite having her
license suspended.
B. An applicant misrepresents previous work experience to land a position.
,C. An insurer inflates the pricing for a certain product line for which they
have little competition.
D. An insurer unfairly discriminates against applicants who live in certain
ZIP codes. - 🧠 ANSWER ✔✔B. An applicant misrepresents previous work
experience to land a position.
The sales team at Local Insurance Company receives periodic training on
insurance laws and regulations. Which one of the following statements is
correct regarding what the sales team needs to realize?
Select one:
A. Regulatory control over the business of insurance is primarily intended
to protect shareholders.
B. Laws specify right and wrong behavior and are important to orderly
behavior.
C. Laws on their own are enough to dictate moral behavior.
D. Laws exist outside the scope of ethical decision making. - 🧠 ANSWER
✔✔B. Laws specify right and wrong behavior and are important to orderly
behavior.
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STATEMENT. ALL RIGHTS RESERVED
3
, Suzie is a trainer at an insurer who is conducting a class on ethics. Which
one of the following statements is correct concerning what she needs to
impress upon her students?
Select one:
A. A purely moral response to a situation cannot be inappropriate.
B. Ethics are an individual's personal beliefs about right and wrong.
C. Ethics are general codes of expected behavior that are derived from
laws.
D. Ethics entail knowing what to do when a situation presents more than
one "right" answer. - 🧠 ANSWER ✔✔D. Ethics entail knowing what to do
when a situation presents more than one "right" answer.
Laura, a claims processor for Great American Insurance Company, notices
that a claim in her queue involves a personal friend. While the claim itself is
legitimate, the suggested settlement amount appears to be higher than
similar claims in Laura's experience. Her decision on whether to refer her
friend's claim for further investigation or to pay the stated amount primarily
involves which one of the following?
Select one:
2025/2026 Exam All Answers and
Illustrations Given
Sadie, a new claims adjuster, was on the job just two months when she
recognized an ethical issue. She knew from her training that ethics concern
making often difficult decisions
Select one:
A. Between two or more right answers.
B. Based on legal obligations.
C. Between right and wrong.
D. Based on professional standards. - 🧠 ANSWER ✔✔A. Between two or
more right answers.
,Greater North American Insurance Company encounters a recurring claims
situation in which it can choose to pay out either of two different amounts
for any given situation, depending on the interpretation of the claim. There
are no regulations that directly address the issue. The policy they choose to
formulate will be primarily based on which one of the following?
Select one:
A. Principles
B. Ethics
C. Laws
D. Morals - 🧠 ANSWER ✔✔B. Ethics
Which one of the following situations primarily represents a moral, as
opposed to legal or ethical, failure?
Select one:
A. An agent continues to sell insurance coverage despite having her
license suspended.
B. An applicant misrepresents previous work experience to land a position.
,C. An insurer inflates the pricing for a certain product line for which they
have little competition.
D. An insurer unfairly discriminates against applicants who live in certain
ZIP codes. - 🧠 ANSWER ✔✔B. An applicant misrepresents previous work
experience to land a position.
The sales team at Local Insurance Company receives periodic training on
insurance laws and regulations. Which one of the following statements is
correct regarding what the sales team needs to realize?
Select one:
A. Regulatory control over the business of insurance is primarily intended
to protect shareholders.
B. Laws specify right and wrong behavior and are important to orderly
behavior.
C. Laws on their own are enough to dictate moral behavior.
D. Laws exist outside the scope of ethical decision making. - 🧠 ANSWER
✔✔B. Laws specify right and wrong behavior and are important to orderly
behavior.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, Suzie is a trainer at an insurer who is conducting a class on ethics. Which
one of the following statements is correct concerning what she needs to
impress upon her students?
Select one:
A. A purely moral response to a situation cannot be inappropriate.
B. Ethics are an individual's personal beliefs about right and wrong.
C. Ethics are general codes of expected behavior that are derived from
laws.
D. Ethics entail knowing what to do when a situation presents more than
one "right" answer. - 🧠 ANSWER ✔✔D. Ethics entail knowing what to do
when a situation presents more than one "right" answer.
Laura, a claims processor for Great American Insurance Company, notices
that a claim in her queue involves a personal friend. While the claim itself is
legitimate, the suggested settlement amount appears to be higher than
similar claims in Laura's experience. Her decision on whether to refer her
friend's claim for further investigation or to pay the stated amount primarily
involves which one of the following?
Select one:
