Study 10: Ethics, Education And Excellence Flashcards
A formally adopted statement of applied ethics is also known as what?
A) Code of conduct
B) Mission statement
C) Vision statement
D) Non-disclosure agreement
A) Code of conduct
A code of conduct is a formally adopted statement of applied ethics that has formally declared the operating values and principles of the organization.
What is the definition of utmost good fait?
A) A suggested standard of conduct that insurance professionals should adhere to
B) A superior standard of conduct required by all participants in the insurance contract
C) A moral way to behave
D) A standard by law
B) A superior standard of conduct required by all participants in the insurance contract.
It is a superior standard of conduct required of all participant to insurance contractual obligations. It exacts a high level of honesty and disclosure relating to the risks of insurance.
When working with colleagues and clients, why is it important to ask effective questions?
A) To help with gathering information, asserting a particular perspective, and showing collaboration
B) To help with gathering information, clarifying assumptions, and showing multiple perspectives on a problem
C) Helps to clarify assumptions, engage in active listening, and learn about a process
D) Helps to show multiple perspectives, gather information and learn how to deliver difficult messages
B) To help with gathering information, clarifying assumptions, and showing multiple perspectives on a problem
To communicate effectively, it is essential to be able to ask good questions to gather information, clarify assumptions, and show multiple perspectives on a problem. Good questions lead to better understanding.
Delivering difficult messages is one of the lease pleasant parts of an insurance professional’s job. Which of the following is a strategy for delivering bad news effectively?
A) Be concise
B) Focus on feelings
C) Use innuendo to soften the blow
D) Wait until some time has passed before sharing the news
A) Be concise.
It is important to be concise and factual when delivering difficult messages. Delaying the message, not being forthright with the information, or allowing feelings to dominate the conversation are ways that could potentially make the problem worse.
In the case study on explaining the contract, what was the main problem with how Stanley handheld this situation?
A) He confirmed coverage when he did not have binding authority to do so
B) He didn’t find subscribers before reaching out to Christina about coverage with ACME Insurance
C) He should have looked to other insurers, because Donald has too much property insured with ACME insurance already
D) He misunderstood the terms of the purchase and sale contract.
A) He confirmed coverage when he did not have binding authority to do so.
Stanley did not have the binding authority necessary to confirm coverage on this policy. HE should have read and made sure he understood the terms of his contract with ACME INsurance about binding authority.
In the case study explaining the contract, why didn’t Christina just refuse to insure the building, given that it was outside of ACME Insurance’s risk appetite?
A) An insurer is not allowed to refuse coverage to an already-existing client
B) She understands the value of keeping good relationships with clients and brokers
C) The building was not that risky of an incurable interest
D) It is generally quite easy to get reinsurance coverage for risks like this one
B) She understands the value of keeping good relationships with clients and brokers
By working towards a win-win0win solution, Christina has maintained the relationship with a long-time, profitable client and the broker.
In the case study on identifying exposures, which of the following is NOT an exposure the broker identified for New Hamburg by looking at the flow chart?
A) Supply chain exposure
B) Business interruption exposure
C) Key people exposure (lack of repair staff)
D) KEy people exposure (lack of cross-training on different machines)
C) Key people exposure (lack of repair staff)
Of the exposures identifies, a lack of repair staff was not one of them. One of the co-owners is a licensed millwright and can fix and maintain all of the machines.
Review the flow chart of New Hamburg’s manufacturing process in the case study on identifying exposures. Where does the main bottleneck in production occur?
A) Cutting machine
B) Sanding station
D) Drying room
D) Packaging department
D) Drying room
The drying room has been identified as being too small, which sometimes creates bottlenecks in New Hamburg’s production process, especially during a peak season.
A policy can be voided for misrepresentation of loss history if the:
A) Losses exceed a certain value
B) Broker requests it
C) Underwriter things the policy should be voided
D) Application would not have been accepted had the information been known
D) Application would not have been accepted had the information been known.
If an application would not have been accepted had all the information been known, the policy can be voided for misrepresentation.
What could a broker ask for to determine ownership?
A) Signed affidavit
B) Lawyer’s letter confirming ownership
C) Business licence
D) Proof of business address
C) Business licence
A Business licence is teh correct documentation identifying business owners.
Narrative: Identify five characteristics of ethics in the workplace. (5 marks)
Ethics in the workplace (any five of the following):
1) Attention to clients’ interests
2) Awareness of ethical dilemmas
3) Confidentiality
4) Competency
5) Integrity
6) Quality of Service
7) Proper conduct towards others
Narrative: Identify Situations when a difficult message needs to be shared. (5 marks)
Sharing difficult messages ( Points awarded for other relevant situations )
1) An unanticipated development
2) An unexpected result
3) A failure to achieve a task
4) A change in strategy
5) A surprising disclosure
Narrative: Identify five strategies used to deliver a difficult message. (5 marks)
Strategies used to deliver a difficult message (any five of the following)
1) Being timely
2) Being specific
3) Being honest
4) Focusing on facts, not feelings
5) Staying positive
6) Anticipating reactions
7) Planning for the conversation
8) Framing the conversation
9) Stating the decision
10) Providing context and supporting facts
11) Discussing next steps
