ETHICS 311: ETHICAL DECISION MAKING IN
RISK AND INSURANCE QUESTIONS WITH
CORRECT ANSWERS 2026-2027
Morals - CORRECT ANSWER -Making distinction between right and wrong
Laws - CORRECT ANSWER -Legal tenants
Ethics - CORRECT ANSWER -
Knowing what to do when a situation presents more than one "right" answer
Supporting Professionalism - CORRECT ANSWER -1. High Ethical Standards
2. Professional Competence
3. Sense of Altruism
4. Commitment to Continuing Education
5. Participation in an Association or a Society
6. Ability to Think and Act Independently
7. Public recognition as a Professional
High Ethical Standards - CORRECT ANSWER -
Standard of "utmost good faith" to ensure ethical nature of relationship between insureds
and insurers
Professional Competence - CORRECT ANSWER -
Ability to apply knowledge to risk and insurance circumstances is acquired through professi
onal training and job experience
Altriusm - CORRECT ANSWER -Unselfish concern for the welfare of others
, Maintaining High Ethical Standards - CORRECT ANSWER -1. Regulatory Requirements
2. Social Responsibility
3. Economic Outcomes
Regulatory Requirements - CORRECT ANSWER -
Fiduciary Duty = Enhanced level of trust, arising from statutory rules and regulations or be
impacted by rulings and interpretations of the courts
Social Responsibility - CORRECT ANSWER -
Expectations that compel organizations to focus on goals and objectives on long term surviv
al and sustained growth
Economic Outcomes - CORRECT ANSWER -Better reputations -
better recruiting and skilled employees
Ethical Responsibility to Groups - CORRECT ANSWER -1. Insurers
2. Policyholders
3. The Public
Insurers - CORRECT ANSWER -
Provide customers with protection from financial loss by managing risk exposures
2 ways insurers have direct contact with public - CORRECT ANSWER -
1. Purchase of insurance coverage initiates responsibility to the policyholders
2. Policy language creates contractual obligations that are fulfilled when a loss event occurs
and results in a claim
RISK AND INSURANCE QUESTIONS WITH
CORRECT ANSWERS 2026-2027
Morals - CORRECT ANSWER -Making distinction between right and wrong
Laws - CORRECT ANSWER -Legal tenants
Ethics - CORRECT ANSWER -
Knowing what to do when a situation presents more than one "right" answer
Supporting Professionalism - CORRECT ANSWER -1. High Ethical Standards
2. Professional Competence
3. Sense of Altruism
4. Commitment to Continuing Education
5. Participation in an Association or a Society
6. Ability to Think and Act Independently
7. Public recognition as a Professional
High Ethical Standards - CORRECT ANSWER -
Standard of "utmost good faith" to ensure ethical nature of relationship between insureds
and insurers
Professional Competence - CORRECT ANSWER -
Ability to apply knowledge to risk and insurance circumstances is acquired through professi
onal training and job experience
Altriusm - CORRECT ANSWER -Unselfish concern for the welfare of others
, Maintaining High Ethical Standards - CORRECT ANSWER -1. Regulatory Requirements
2. Social Responsibility
3. Economic Outcomes
Regulatory Requirements - CORRECT ANSWER -
Fiduciary Duty = Enhanced level of trust, arising from statutory rules and regulations or be
impacted by rulings and interpretations of the courts
Social Responsibility - CORRECT ANSWER -
Expectations that compel organizations to focus on goals and objectives on long term surviv
al and sustained growth
Economic Outcomes - CORRECT ANSWER -Better reputations -
better recruiting and skilled employees
Ethical Responsibility to Groups - CORRECT ANSWER -1. Insurers
2. Policyholders
3. The Public
Insurers - CORRECT ANSWER -
Provide customers with protection from financial loss by managing risk exposures
2 ways insurers have direct contact with public - CORRECT ANSWER -
1. Purchase of insurance coverage initiates responsibility to the policyholders
2. Policy language creates contractual obligations that are fulfilled when a loss event occurs
and results in a claim
