CPCU 500 Exam Questions and Answers 2023- Managing Evolving Risks 100% Correct
Which one of the following statements about the use of drones is true?
Drones may be equipped with cameras that relay data in real-time
Which one of the following uses infrared light to detect nearby objects?
Lidar...
CPCU 500 Exam Questions and Answers 2023- Managing
Evolving Risks 100% Correct
Which one of the following statements about the use of drones is true?
Drones may be equipped with cameras that relay data in real-time
Which one of the following uses infrared light to detect nearby objects?
Lidar
AMRM Insurance Company sells insurance in Virginia, North Carolina, South
Carolina, and Georgia. The company has compiled a policyowner data base that
can be used to send text messages when hurricanes approach. The company
provides early warnings, storm updates from the National Weather Service, and
hurricane safety measures. The company credits the system with reduced
hurricane claims. The use of the texting system is an example of
Preventive analytics
Clear-Rite Company specializes in the clean-up of hazardous chemical spills.
Workers performing clean-up operations must use safety suits to prevent
exposure to the chemicals. The suits include pulse and respiration monitors,
body temperature sensors, and chemical sensors. The monitors and sensors
report data to a mobile operations center which is deployed to each clean-up site.
The pulse and respiration monitors and the sensors that are part of the protective
gear are called
Wearable technologies
The traditional definition of risk management reflects the traditional concept of
risk as
Negative
WOTF is true regarding the evolution of risk and risk management?
The definition of risk has evolved to included +/- attributes
Many auto manufacturers have automated a portion of their assembly lines by
introducing a smart product. The smart product performs repetitive tasks, such
as making the same weld on each vehicle frame as it passes the smart product.
These smart products, which can be fixed or mobile, reduce repetitive motion
injuries that humans might suffer. They can also be used to perform dangerous
tasks and in heavy-lifting jobs. These smart products are called
Robots
Which one of the following is described as a distributed database that serves as a
collectively shared ledger?
Blockchain
Autonomous Vehicle Applications (AVA) is a start-up company that develops
safety technologies that can be sold to companies that are producing
autonomous vehicles. One technology AVA is developing allows an autonomous
vehicle to detect, extract, and analyze images; and then to respond to the images.
For example, the technology would detect a presence in a crosswalk, extract the
image, and a computer would analyze the image. When the image was determined
to be a human being, the vehicle would slow down or stop until the crosswalk
,was clear. This technology, which is designed to capture and analyze images,
and to act on the recognition of the image; is called
Computer vision
Catastrophes such as recent earthquakes and the 2011 tsunami in Japan pointed
out a need for many organizations to evaluate and manage their
Supply-chain risk
Which one of the following best explains how most smart products potentially
improve risk management?
They generate big data to which advanced analytics can be applied
Take Your Order (TYO) is a company that specializes in taking product orders for
vendors. The manufacturer of a product can run a television or internet ad for a
product with a toll-free number. Customer calls for the products are routed to
TYO, where one hundred operators are available to receive the calls. Each
operator is assigned a cubicle with a computer terminal, video display monitor,
and a telephone. TYO experienced high workers compensation claims from its
operators, claiming neck strain, eye strain, and wrist pain. In an effort to reduce
such injuries, TYO evaluated each operator's work area. The height of chairs and
video monitors were adjusted, curved computer keyboards and wrist-rests were
provided, and the telephones were replaced with audio headsets. Workers
compensation costs dropped significantly. The science of designing work spaces
based on interaction between people and the equipment in the work space is
called
Ergonomics
Don is the Risk Manager for Rafferty Corporation. One of his peers, Sally, asks
him one day, "How do you define risk?" When Don replies, which one of the
following statements is accurate?
Risk has different meanings within the risk management and insurance communities.
In an effort to reduce expenses, increase profitability, and reduce human errors;
ABC Insurance Company decided to automate most of its personal lines
underwriting function. The company now uses standardized application forms
that are submitted electronically to one of the company's regional offices. At each
regional office, a computer with a scanner reads the applications. The computer
has been programmed with acceptable answers to the questions. If the answers
on the application are all acceptable, the policy is automatically issued. Rejected
applications are automatically forwarded to a human underwriter who reviews
them. The use of this technology has reduced the company's expense ratio by
two and a half percent, and reduced the time it takes to issue a policy. ABC
Insurance Company's use of computers to evaluate applications electronically is
an application of
Artificial intelligence
A municipal water plant installed water flow sensors and water pressure sensors
on the water pipes leaving the plant. The sensors make sure water is flowing
properly and that there are no leaks or clogs which could produce a loss. These
types of sensors are
Mechanical sensors
,Which one of the following is a tool that can be used by fraud investigators to
compare documents and analyze notes?
Text mining
Last year, three Metro City firemen died responding to a fire at a chemical plant,
when they were overcome by toxic fumes. In response, Metro City is purchasing
advanced first responder gear. It includes special flame retardant suits with
chemical and explosive fume sensors, air quality sensors, and heat sensors.
Responders will also wear special watches that will track a responder's pulse,
respiration, and blood pressure; and helmets that include video cameras. All of
these sensors will feed data to a computer in real-time. The computer will analyze
the data and issue threat levels and evacuation orders, if necessary. The
protective gear Metro City will purchase and the data transmission and analysis
capability illustrate the use of
Smart products
Precision Electronic Components manufactures circuit boards, microchips, and
other electronic products. Given the precision necessary for their products, the
manufacturing environment must be controlled. Temperature, humidity, static
electricity and other factors must be monitored. After losing several batches of
products due to human monitoring failures and imprecise adjustments, the
company moved to a system of sensors. The sensors monitor and regulate
temperature, humidity, static electricity, and other factors. The sensors transmit
data to and from each other, and the manufacturing environment is continuously
adjusted to assure production is successful. The network of sensors transmitting
data and the autonomous corrective actions without human interaction is called
The Internet of Things
Mutual Fund Company (MFC) offers a wide array of mutual fund options to
investors. Each mutual fund has a different fund objective and set of investment
guidelines that apply to the fund. While MFC gives considerable freedom to its
fund portfolio managers, they are required to abide by the fund's investment
guidelines. To monitor compliance, MFC developed a computer algorithm. The
computer algorithm continuously monitors each fund's compliance with
investment guidelines. If a fund manager violates the investment guidelines, the
computer immediately notifies MFC's internal control director, and corrective
action is taken. MFC's use of the computer algorithm to monitor investment
compliance and to provide notification when corrective action is necessary
illustrates use of
Artificial intelligence
Data Entry Company (DEC) offers customers data entry services. A customer can
hire DEC to enter survey data to be analyzed. Many DEC employees spend long
hours entering data on a computer. DEC has experienced neck strain and wrist
pain complaints from their employees, increasing the company's workers
compensation costs. DEC investigated the complaints of its data-entry
employees. DEC adopted curved keyboards for data entry, wrist-rests for those
entering data, and uniform chair heights and display monitor heights to reduce
neck strain claims. The science of designing work spaces based on the health
concerns of those who will operate in the work space is called
, Ergonomics
WOTF is an ex of wearable?
Helmets that monitor fatigue
The National Ocianic (NOA) Monitors tsunami risk. Using the tsunami detection
buyous (smart prod) illustrates
CAT management
WOTF data capture tools has led to an explosion of risk management innovation
by allowing smart products to transmit data?
Internet of Things
The diff between risk tech & insuretech is
Risk tech goes beyond insuretech by expanding its focus to making risk financing more
efficient & preventing & mitigating losses in a variety of indv.
Risk managers today differ from traditional risk managers in WOTF ways?
They attempt to min threats & optimize opportunities
In addition to metal detectors, many airports have installed a 2nd type of
scanning tech 4 checked baggage & cargo to detect explosives based on air
samples. Which sensor used for risk assemt and control?
Biochemical sensors (home diagnosis tests, wearable fitness monitors, diabetes tests)
William is a risk manager for Green Mountain Trucking. He has always analyzed
auto loss frequency and severity rates for the fleet. William would like to collect
data on vehicle speeds, braking patterns, and distance traveled and compare that
with the loss history. Which one of the following would help William capture and
analyze this data?
Vehicle Telematics
Southwest Interstate Railroad (SIR) is concerned about the number derailments in
recent years. It's not cost effective to use human assets to inspect tracks,
bridges, and trestles. Instead, SIR has started to use drones. A drone can fly low
over tracks and above/below bridges and trestles. The drones record video that is
transmitted to corporate headquarters where it is simultaneously scanned for
derailment hazards. In the past six months, the drones detected a track blockage
caused by a rock slide and damage to tracks in a remote area cause by an
earthquake. SIR dispatched work crews to make the tracks once again passable,
and no derailments occurred. SIR's use of drones, video, real-term video
scanning, and computer analysis illustrates which one of the following?
Preventive Analytics
WOTF is true about preventive analytics
Uses smart products and data analytics to identify root loss causes and their
implicaitions.
The emerging techs applied to risk assessment and control link the physical
domain and virtual domain. Together, these domains linked by the merging techs
create a
Connected ecosystem
In remodeling the primary office location, Phil, who is a partner in his family's
construction business, found asbestos in the attic of the building. He is
concerned not only about the current tear-out exposure but is also aware that
asbestos may have resulted in unidentified harm. In the "quadrants of risk," Phil's
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