Cpcu 500 exam stuvia - Study guides, Class notes & Summaries

Risk involves the possibility of a negative outcome. Possibility means - ANSWERSThat an outcome may or may not occur. Risk can be classified as subjective or objective. Which one of the following statements is correct with respect to these risk classifications? - ANSWERSSubjective risk can exist even where objective risk does not. The concept of correlation, in the context of why enterprise risk management works, - ANSWERSIs the proposition that correlation increases risk while uncorrelate...

Which 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 - ANSWERSC. 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 ...

The risk of increased competetitio falls into the category of which quadrant of risk - ANSWERSStrategic Risk Failing to respond to changing customer demand and preferences in the design could drop the market share. Which quadrants of risk is this? - ANSWERSStrategic risk, arise from trends in the economy and society If car is stolen and the tracking device can be used to recover the car more quickly. Which RM technique is this? - ANSWERSLoss reduction How traditional RM works - ANSWERSS...

Which one of the following statements about the use of drones is true? - ANSWERDrones may be equipped with cameras that relay data in real-time Which one of the following uses infrared light to detect nearby objects? - ANSWERLidar 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 f...

In the context of risk, the chance of being injured while driving to and from work, loading a truck at work, moving furniture at home, or falling in an icy parking lot at the mall are all examples of A. Possibilities. B. Uncertainties. C. Probabilities. D. Losses. - ANSWERA. Possibilities. The statement, "There is a five percent chance that John will be injured in an automobile accident while driving to work tomorrow," is an example of A. Quantifying risk. B. Verifying risk....

Risk involves the possibility of a negative outcome. Possibility means - ANSWERThat an outcome may or may not occur. Risk can be classified as subjective or objective. Which one of the following statements is correct with respect to these risk classifications? - ANSWERSubjective risk can exist even where objective risk does not. The concept of correlation, in the context of why enterprise risk management works, - ANSWERIs the proposition that correlation increases risk while uncorrelated r...

Describe the 2 elements of risk - ANSWER1.) Uncertainty of outcomes: risk involves uncertainty about the type of outcome, timing o outcome, or both 2.) possibility of a negative outcome: at least of the potential outcomes is negative Whats the difference between possibility and probability? - ANSWERPossibility: outcome may or may not occur Probability: likelihood that an outcome will occur Does Possibility or Probability measure risk? - ANSWERProbability does, possibility DOES NOT ...

In insurance terminology, trucks, trailers, buses, fire engines, and ambulances designed for road use are examples of which one of the following categories of motor vehicles? - ANSWERAuto Property insurance policies generally refer to the contents of a commercial building as - ANSWERBusiness personal property When a person or business borrows money to buy a home or a building, - ANSWERthe borrower is called a mortgagor Liability entries on an organization's balance sheet are particularly use...

Which one of the following statements about the use of drones is true? - ANSWERDrones may be equipped with cameras that relay data in real-time Which one of the following uses infrared light to detect nearby objects? - ANSWERLidar 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 f...