Ethics 311: Ethical Decision Making in Risk and Insurance LATEST UPDATED 2025/2026 Exam Questions With SURE VERIFIED SOLUTIONS 100% GRADED AT A+ SCORE!!

Ethics 311: Ethical Decision Making in Risk and Insurance LATEST UPDATED 2025/2026 Exam Questions With SURE VERIFIED SOLUTIONS 100% GRADED AT A+ SCORE!! 1. Morals - ANSWER Making distinction between right and wrong 2. Laws - ANSWER Legal tenants 3. Contract Law - ANSWER Governs the formation and performance of the insurance contract 4. Tort Law - ANSWER Applies the determining wrongdoer's negligence or responsibility when an accident or other harmful event occurs 5. Situation Based Decision Making - ANSWER Analyzes the potential outcomes of possible decisions given the circumstances (group needs over individual needs) -"ends based"- 6. People Based Decision Making - ANSWER Considers personal circumstances involved in any decision end calls for a degree of empathy, including ability to consider a decision and its outcome from someone else's perspective 7. Ethics - ANSWER Knowing what to do when a situation presents more than one "right" answer 8. Supporting Professionalism - 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 9. High Ethical Standards - ANSWER Standard of "utmost good faith" to ensure ethical nature of relationship between insureds and insurers 10. Professional Competence - ANSWER Ability to apply knowledge to risk and insurance circumstances is acquired through professional training and job experience 11. Altriusm - ANSWER Unselfish concern for the welfare of others 12. Maintaining High Ethical Standards - ANSWER 1. Regulatory Requirements 2. Social Responsibility 3. Economic Outcomes 13. Regulatory Requirements - ANSWER Fiduciary Duty = Enhanced level of trust, arising from statutory rules and regulations or be impacted by rulings and interpretations of the courts 14. Social Responsibility - ANSWER Expectations that compel organizations to focus on goals and objectives on long term survival and sustained growth 15. Economic Outcomes - ANSWER Better reputations - better recruiting and skilled employees 16. Ethical Responsibility to Groups - ANSWER 1. Insurers 2. Policyholders 3. The Public 17. Insurers - ANSWER Provide customers with protection from financial loss by managing risk exposures 18. 2 ways insurers have direct contact with public - 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 19. Policyholders - ANSWER -Parties to the insurance contract, giving them specific rights and duties -Consumers of the insurance product, paying premiums when acquiring coverage -Beneficiaries when payments are made to them under the first party coverage of the insurance contract -Protected through liability insurance contracts when they become legally liable for a 3rd party claimant 20. The Public - ANSWER Indemnification = Process of restoring an individual/organization to a pre-loss financial condition -Responsibility begins with development of a policy wording to prevent moral and morale hazard 21. Moral Hazard - ANSWER Increases likelihood person will intentionally cause or exaggerate a loss 22. Morale Hazard - ANSWER Carelessness or indifference that increases the frequency or severity of loss 23. An Approach to Resolving Ethical Dilemmas - ANSWER 1. Identifying the Stakeholders 2. Determine the Motivation for Actions Taken 3. Relevant Ethical Issues 24. Identifying the Stakeholders - ANSWER Accurate information must be obtained, requiring scrutiny of the information for reliability and relevancy 25. Determine the Motivation for Actions Taken - ANSWER -Truth (universal basis of morality) vs. Loyalty (fidelity to a person, thing, or concept and exists independently of concerns related to morality) -Individual vs. Community -Long term vs. Short term -Justice vs. Mercy 26. Ethical Perspectives - ANSWER 1. Rules Based Decision Making 2. Situation Based Decision Making 3. People Based Making 27. Rules Based Decision Making - ANSWER Takes into account whether any established rules or laws govern an action or decision -What SHOULD be done- 28. Ethical Decision Making Tools - ANSWER 1. Code of Ethics 2. Flowcharts and Checklists 29. Barriers to Ethical Decision Making - ANSWER 1. Physical Barriers 2. Procedural Barriers 3. Administrative Barriers 30. Code of Ethics - ANSWER Includes statement of organization's values creating basis for culture 31. Physical Barriers - ANSWER Prevents a professional from developing factual information about the ethical dilemma through restraints/restriction to access, or stumbling blocks to uncovering truth about the situation or people associated 32. Procedural Barriers - ANSWER Arise when processes for resolving conflicts hinder the identification, careful consideration, or resolution of ethical dilemmas or when no systematic