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Cpcu 500 Questions And Answers With Verified Solutions 100% Correct!!!
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Cpcu 500 Questions And Answers WithVerified Solutions 100% Correct!!!
Which one of the following best illustrates the benefit of insurance in driving
economic growth?
Select one:
A. Protecting drivers from large lawsuits if they injure someone while driving.
B. Providing a guarantee to mortgage lenders against loss of a home by fire.
C. Transforming what would otherwise be dire circumstances into manegable
scenarios.
D. Making loans of funds collected in premiums before losses are paid. -
ANSWER✔✔ D. Making loans of funds collected in premiums before losses are
paid.
Insurers' response to the liability crisis of a rapid increase in tort litigation and
class-action lawsuits evolved in which one of the following ways?
Select one:
A. Changing liability coverage to a claims-made basis.
B. Raising public awareness of the effect on policyholders.
C. Collaborating with the federal government to share costs of rising claims.
D. Enhancing fraud detection through data analysis. - ANSWER✔✔ A. Changing
liability coverage to a claims-made basis.
Erin is a project manager at Shelton Manufacturing. She is responsible for a major
project that will require the collaboration of many different groups. Erin needs to
motivate everyone from the sales force and support team, to the suppliers,
production lines, and logistics teams to achieve the goal by July 1st. Which one of
the following is key in order for Erin to achieve this collaboration?
,Select one:
A. Advising each group of the method that she wants them to use to complete
their task.
B. Encouraging group members to ignore obstacles and keep moving forward.
C. Putting the desired result at the forefront and making sure that everyone
knows what group success looks like.
D. Setting individuals goals for each stakeholder involved in the project. -
ANSWER✔✔ C. Putting the desired result at the forefront and making sure that
everyone knows what group success looks like.
Which one of the following is an example of a negative perception of insurance
that is not based on reality?
Select one:
A. After taxes and fees, insurers are left with about 1 cent of profit for every dollar
received.
B. Insurance is an expensive product that's rarely used and doesn't provide a
value commensurate to its cost.
C. Insurance did not cover COVID-19 losses because they did not involve property
damage.
D. Insurance is a means of protection, not an investment. - ANSWER✔✔ B.
Insurance is an expensive product that's rarely used and doesn't provide a value
commensurate to its cost.
In order to achieve collaboration, group leaders must
Select one:
A. Remain focused on preventing stakeholders from straying from the common
goal.
B. Focus on the worker's personality rather than results.
,C. Promote competition among members of the group.
D. Remain focused on achieving the goals of their individual groups. -
ANSWER✔✔ A. Remain focused on preventing stakeholders from straying from
the common goal.
Which one of the following has been an insurance industry response to the
Coronavirus pandemic
Select one:
A. Widespread approval of business interruption claims.
B. Issue auto premium rebates to insureds.
C. Exclude "black swan" events from coverage.
D. Revise homeowners insurance to include ride-share coverage. - ANSWER✔✔ B.
Issue auto premium rebates to insureds.
Gaining a holistic perspective requires
Select one:
A. Encouraging individuals to resolve issues within their own work units.
B. Becoming an expert on the work that every stakeholder performs.
C. Designating one individual to be responsible for initiating meetings and
dominating conversations.
D. Developing a thorough understanding of each unit's role and how it supports
or depends on other units and stakeholders. - ANSWER✔✔ D. Developing a
thorough understanding of each unit's role and how it supports or depends on
other units and stakeholders.
Risk can be classified as subjective or objective. Which one of the following
statements is correct with respect to these risk classifications?
, Select one:
A. Individuals' subjective perception of risk in a given set of circumstances is
typically much higher than the objective risk.
B. Subjective risk is risk associated with individuals; objective risk is risk associated
with objects or things.
C. Risk managers focus on objective risk and attempt to avoid allowing subjective
risk to affect their decisions.
D. Subjective risk can exist even where objective risk does not. - ANSWER✔✔ D.
Subjective risk can exist even where objective risk does not.
The fundamental purpose of a risk management framework is to
Select one:
A. Define and eliminate potential losses.
B. Maximize profits for all stakeholders.
C. Integrate risk management throughout the organization.
D. Reduce the cost of risk. - ANSWER✔✔ C. Integrate risk management
throughout the organization.
Risk can be classified as diversifiable or nondiversifiable. Which one of the
following statements is true with respect to this type of risk classification?
Select one:
A. Systemic risks are generally diversifiable.
B. Diversifiable risks tend not to be correlated so they can be managed through
diversification or spread of risk.
C. Inflation, unemployment and natural disasters, such as hurricanes, are
examples of diversifiable risk.
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