Sally works for Insurance Company in the underwriting department where she implements policy changes. In reviewing a

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Question:

Sally works for Insurance Company in the underwriting department where she implements policy changes. In reviewing a policyholder's address change, Sally realizes that the policyholder deserves a refund because her policy was being improperly rated at the old address. To make the correction according to company procedures and legal requirements, Sally would have to refund the difference in premium for the last ten renewals and would have to calculate interest on each period. She decides to simply make the address change and save the insurer some time and money instead. Sally's decision is clearly unethical under an analysis that is

Select one:

A. Function-based.

B. Situation-based.

C. People-based.

D. Rules-based.

2 Rhonda and her sister Karen both work for Insurance Company in a production-oriented environment. Rhonda is quite capable of issuing 20 or more auto applications a day while Karen struggles to complete fewer than a dozen most days. Twice a year, employees must prove competency, and underwriting reviews are conducted to ensure compliance to standards of at least 15 applications per day. Therefore, twice a year, Rhonda goes to Karen's desk on her lunch hour for two weeks during the review period and issues applications for Karen to ensure that she meets the company standards. Rhonda recently took an ethics course and has begun to wonder whether this arrangement is ethical. Which one of the following statements is true?

Select one:

A. If Rhonda cannot find an ethical canon that specifically addresses her issue, then she can be assured that her conduct is ethical.

B. If Rhonda applies rule-based decision making, then she will consider the situation from Karen's perspective.

C. If Rhonda applies situation-based decision making, then she may realize that in the long-run her employer suffers because its review process is being compromised.

D. If Rhonda applies people-based decision making, then she will have to determine whether any of her supervisors created a rule prohibiting her conduct.

3 Joshua is insured with InsureCo through its agent, Olivia. He has an automobile and a commercial property policy with InsureCo. Joshua's son Harry, who lives at home, is driving the insured vehicle. He loses control and hits a guardrail causing $4,500 damage to the vehicle. Joshua asks Olivia for advice. Olivia knows that InsureCo's guidelines state that one at-fault accident, whether a claim is paid or not, results in an automatic premium increase of twenty-five percent. If Joshua pays for the damage himself the insurer may never know about the accident.

Olivia's decision is to advise InsureCo of the accident. Which one of the following decision-making tools is Olivia most likely using when she makes her decision?

Select one:

A. Situation-based decision making

B. People-based decision making

C. Ethics-based decision making

D. Rules-based decision making