CPCU Exam 4 Questions and Answers
An advantage of a large deductible plan is that it allows the insured organization to
Benefit from the cash flow available on the retained loss reserves.
A state wants to build a road through an environmentally-sensitive area. The area includes endangered ...
CPCU Exam 4 Questions and Answers
An advantage of a large deductible plan is that it allows the insured organization to -
answer Benefit from the cash flow available on the retained loss reserves.
A state wants to build a road through an environmentally-sensitive area. The area
includes endangered flora and fauna, as well as wetlands. Build-Rite Construction
expressed interest in the project, but is concerned about potential liability. Build-Rite
agrees to build the road if the state assumes all responsibility for any liability arising out
of the construction of the road. A state representative has signed-off on the contract,
agreeing that the state will be responsible for all liability. This transfer of responsibility
for fault illustrates which one of the following forms of noninsurance risk financing
transfer? - answer Broad form
Oscar's custom-built vehicle looks like a sausage sandwich on wheels. He plans to drive
it to special events at schools around the country where it will serve as a mobile
billboard to promote his product. Oscar is surprised to learn that insurers are reluctant to
insure his vehicle because it fails to meet one of the ideal characteristics of an insurable
risk. Which characteristic is Oscar's vehicle least likely to meet? - answer Large
number of similar exposure units
Which one of the following technologies can provide the infrastructure upon which smart
contracts are built and implemented? - answer Blockchain
Advancements in machine learning and artificial intelligence (AI) have helped insurers
do all of the following, EXCEPT: - answer Completely prevent customers' risk
Which one of the following statements is true regarding contracting for services as a
noninsurance risk control transfer? - answer Liability loss exposures associated with
an activity are not transferred easily, especially regarding harm to third parties.
Internet of Things (IoT) devices, sensors, wearables, and telematics devices have had
the greatest impact on which one of the following risk treatment techniques? - answer
Risk modification
Ivanhoe Corporation purchases stock in a bank and in a pharmaceutical manufacturer.
Because these are unrelated industries, Ivanhoe hope that any losses in one stock will
be more than offset by profits in another. Ivanhoe is using which one of the following
risk management techniques? - answer Diversification
Which one of the following statements is correct regarding characteristics of ideally
insurable loss exposures? - answer A common function that insurance provides is a
spreading of risk across a large number of similar exposure units within the same
period.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Pogba119. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.