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CPCU 500: Becoming a Leader in Risk Management and Insurance Exam | Questions and Verified Answers| 100% Correct| Grade A (Latest 2023/ 2024 Update)$10.99
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CPCU 500: Becoming a Leader in Risk Management and Insurance Exam | Questions and Verified Answers| 100% Correct| Grade A (Latest 2023/ 2024 Update)
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Course
CPCU 500
Institution
CPCU 500
CPCU 500,Becoming a Leader in Risk Management and Insurance Exam | Questions and Verified Answers| 100% Correct| Grade A (Latest 2023/ 2024 Update)
Q: Which one of the following is an element of a loss exposure?
Choose one answer.
A. The verification of risk
B. A cause of loss
C. The ...
CPCU 500: Becoming a Leader in Risk Management and Insurance Exam | Questions and Verified Answers| 1 00% Correct| Grade A (L atest 2023/ 2024 Update) Q: Which one of the following is an element of a loss exposure? Choose one answer. A. The verification of risk B. A cause of loss C. The probability of a loss D. The occurrence of a loss Answer: B. A cause of loss Q: The statement "There is a 5 percent chance that John will be injured in an automobile accident while driving to work tomorrow." is an example of Choose one answer. A. Quantifying risk. B. Verifying risk. C. Quantifying loss exposures. D. Indentifying hazards. Answer: A. Quantifying risk. Q: Dave owns a computer store. He stores backup media copies of confidential records off site in case there is a fire at the computer store. The risk control technique Dave is using to protect the confidential records is Choose one answer. A. Diversification. B. Duplication. C. Avoidance. D. Separation. Answer: B. Duplication. Q: Which one of the following statements regarding monitoring the results of a risk management program is true? Choose one answer. A. A results standard focuses on the quality and quantity of the risk management activities undertaken by the organization. B. Risk management professionals generally prefer performance standards that are solely dependent on the organization's loss record. C. Activities standards are necessary to obtain a complete picture of the success or failure of a risk management program. D. When performance substantially exceeds the standard, the risk management professional knows that the standard has been appropriately set. Answer: C. Activities standards are necessary to obtain a complete picture of the success or failure of a risk management program. Q: Delmond Manufacturing is opening a new manufacturing facility in a building that it purchased from a competitor. Using the information below, which one of the following represents the cost of risk of opening the new facility? New building cost $60.0 million Safety system upgrades $6.0 million Insurance premiums $1.5 million Retained losses $3.0 million Risk management department budget at the site $1.0 million Choose one answer. A. $7.0 million B. $10.0 million C. $11.5 million D. $71.5 million Answer: C. $11.5 million Q: Achieving any post -loss goal involves expending risk management resources, which may conflict with the pre -loss goal of Choose one answer. A. Economy of operations. B. Earnings stability. C. Social responsibility. D. Tolerable uncertainty. Answer: A. Economy of operations. Q: Another term for cause of loss is Choose one answer. A. Negative outcome. B. Exposure. C. Peril. D. Hazard. Answer: C. Peril Q: Which one of the following financial consequences of loss can be established with a high degree of certainty fairly soon after the loss occurs? Choose one answer. A. The value of a pollution loss B. The value of a building that has been damaged by fire C. The value of business lost while the building damaged by fire is being restored D. The value of liability claims related to a defective product Answer: B. The value of a building that has been damaged by fire Q: Which one of the following statements is correct with respect to the expected cost of losses or gains? Choose one answer. A. The expected cost of gains or losses includes only the direct costs associated with a particular risk. B. Calculating the expected cost of losses or gains for pure risks is more complex than for speculative risks. C. Industrial accidents can illustrate the various costs that need to be accounted for in determining cost of losses. D. The expected cost of losses is equal to the uninsured portion of any bodily injury or property damage. Answer: C. Industrial accidents can illustrate the various costs that need to be accounted for in determining cost of losses. Q: An example of an intangible asset that an individual may possess is Choose one answer. A. An investment portfolio. B. A unique skill set. C. Money that is owed to them. D. A rental property. Answer: B. A unique skill set. Q: During the past year, International Toys has undertaken four capital projects. The company has renovated and refurbished one of its aging warehouse buildings. It has purchased the most recent version of its current order processing computer software. It ha s added two trucks to its fleet of delivery vehicles. Lastly, it has purchased a new production machine that will allow it to launch a new product line. Which one of the following company projects is the most speculative risk? Choose one answer. A. The warehouse refurbishment B. The software upgrade C. The two new trucks D. The new production machine Answer: D. The new production machine Q: Which one of the following is measurable and quantifies risk? Choose one answer. A. Uncertainty B. Possibility
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