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Cpcu 500 Practice Exam Questions And Answers With Verified Solutions Already Passed!!!
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Cpcu 500 Practice Exam Questions And Answers With Verified Solutions Already Passed!!!
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Cpcu 500 Practice Exam Questions AndAnswers With Verified Solutions Already
Passed!!!
Risk is... - ANSWER✔✔ Uncertainty of Outcomes
Recalibrating predictive models to give more weight to recent events is the
insurance industry's response to which one of the following evolving risks? -
ANSWER✔✔ Climate Change
Lori and Denise work in the same region at Taunton Insurance. They were working
on individual projects with different objectives but realized that they could help
each other out by sharing information and resources. Which one of the following
is the act of working together to achieve individual objectives rather than a
shared objective? - ANSWER✔✔ Cooperation
The use of risk quadrants to identify and categorize risk provides a framework
for... - ANSWER✔✔ Holistic Risk Identification
Hardware Store has been able to control its prices and inventory since it has no
competitors. A new highway currently being constructed is going to allow
increased competition for Hardware Store. According to the quadrants of risk, this
risk of increased competition falls into the category of... - ANSWER✔✔ Strategic
Risk
Regarding diversifiable and nondiversifiable risk, which one of the following
statements is accurate? - ANSWER✔✔ Systemic risks are generally non-
diversifiable
, 1. Company X hired a safety consultant to complete a walkthrough of their
operations and advise them of any unsafe conditions or out-of-compliance
procedures.
2. Company Y considered purchasing a new type of battery for their phones, but
the board rejected the idea due to the increased risk of product liability claims.
3. Company Z conducted a quantitative risk assessment examining the likelihood
and consequences of the major risks to their company. - ANSWER✔✔ Company X
- Identify risks
Company Z - Analyze Risks
Company Y - Treat Risks
George has received an inheritance and is deciding what to do with the money.
He has limited his options to four choices: donate all the money to his favorite
charity, use the entire inheritance to buy a yacht, invest the inheritance in a small
rental property, or use the entire amount to purchase T-bills. Which one of the
following statements is true regarding the risk involved in George's options? -
ANSWER✔✔ The rental property presents both pure and speculative risk;
property value may increase, and the building could burn down.
An integral part of the risk management process is defining risk criteria. These
criteria should be aligned with an organization's (select all that apply): -
ANSWER✔✔ Risk management policy and objectives
Sixth National Bank stores all of its financial records in an electronic data base.
Sixth National customers are able to access their accounts on-line with a user
identification number and a password. Last weekend, a computer hacker was able
to breach the firewall of the electronic database and gain access to customer
account data. This operational risk for Sixth National Bank is - ANSWER✔✔ a
systems risk
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