CA Ethical & Legal Compliance

Question 1

Why is ethical compliance important in the insurance industry?

Accepted Answer

Ensures fair treatment and trust

Answer

Maximizes insurer profits

Answer

Reduces the need for regulations

Answer

Encourages fraud

Question 2

Which law protects consumers from unfair insurance practices?

Accepted Answer

Consumer Protection Act

Answer

Monopoly Law

Answer

Property Tax Act

Answer

Corporate Profits Act

Question 3

What is the consequence of violating insurance regulations?

Accepted Answer

Fines and legal consequences

Answer

Increased market share

Answer

More customer trust

Answer

No penalties at all

Question 4

Which practice is considered unethical in claims processing?

Accepted Answer

Denying valid claims without justification

Answer

Investigating suspicious claims

Answer

Reviewing policy terms

Answer

Providing clear claim explanations

Question 5

What is the role of an insurance compliance officer?

Accepted Answer

Ensure compliance with laws and regulations

Answer

Increase insurance premiums arbitrarily

Answer

Ignore fraud cases

Answer

Avoid monitoring business activities

Question 6

Why is transparency essential in the insurance industry?

Accepted Answer

Builds trust and reduces disputes

Answer

Encourages misinformation

Answer

Allows hidden fees

Answer

Eliminates customer inquiries