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CPCU 500 Practice Exam 4
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CPCU 500 Practice Exam 4
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CPCU 500 Practice Exam 4Which one of the following technologies can provide the infrastructure upon
which smart contracts are built and implemented?
Select one:
A. Wearables
B. Telematics
C. Blockchain
D. Machine learning - -C. Blockchain
-Leasing is a useful noninsurance risk control transfer because
Select one:
A. The lessor loses the ability to use the property for the remainder of the
lease in the event of damage to the property.
B. The lessee stands to lose the property's rental income in the event of
damage to the property.
C. The lessee retains the loss exposures resulting from property destruction.
D. Certain loss exposures accompany property ownership but do not
accompany its use or occupancy. - -D. Certain loss exposures accompany
property ownership but do not accompany its use or occupancy.
-The control technique that disperses a particular asset or activity over
several locations and regularly relies on that asset or activity as a part of an
organization's working resources is which one of the following?
Select one:
A. Risk transfer
B. Duplication
C. Diversification
D. Separation - -D. Separation
-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?
Select one:
A. Pure risk
B. Large number of similar exposure units
C. Definite and measurable
, D. Independent and not catastrophic - -B. Large number of similar exposure
units
-Hold-harmless agreements are
Select one:
A. Comprised of two parties—the indemnitor and the indemnitee.
B. Enforceable without legal consideration.
C. Highly regulated.
D. Standardized. - -A. Comprised of two parties—the indemnitor and the
indemnitee.
-Telematics devices allow organizations to accurately identify patterns of
risk and predict risk for which one of the following types of loss exposures?
Select one:
A. Business income
B. Property
C. Workers compensation
D. Automobile - -D. Automobile
-Emerald Industries has just invested a large sum in new, highly-
sophisticated computer equipment and building renovations. Emerald
installed state-of-the-art smoke detection devices throughout the facility.
Emerald's state-of-the-art smoke detection devices are an example of
Select one:
A. Duplication.
B. Loss prevention.
C. Loss reduction.
D. Avoidance. - -C. Loss reduction.
-Commercial general liability insurance policies written on an occurrence
basis apply to bodily injury and property damage that occurs during the
policy period. This provision supports the principle that insurable loss
exposures must ideally be
Select one:
A. Fortuitous.
B. Definite.
C. Independent.
D. Pure risks. - -B. Definite.
-An organization may use a large deductible plan to achieve the purpose of
which one of the following?
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