NIGP CPPO CERTIFICATION EXAM
QUESTIONS WITH COMPLETE 100%
VERIFIED SOLUTIONS 2024/2025, EXAMS
OF INSURANCE ECONOMICS
return on investment or ROI Correct Answer A calculation used in
business to determine whether a proposed investment is a wise
business decision and how well it will repay the investor. It is
calculated as the ratio of the amount gained or loss relative to the
basis. The analysis takes the form of a dynamic model or
statistical model.
estoppel Correct Answer A legal principal that prevents a person
from asserting a position that is inconsistent with his or her prior
conduct, if injustice would thereby result to a person who has
changed position in justifiable reliance upon that conduct. For
example, a landlord informs a tenant that there was construction
or a lapse in utility services. If the tenant relies on this statement
in choosing to remain on the premises, the landlord could be
barred under the principle from collecting full rent.
performance based contract Correct Answer A results-oriented
contracting method that focuses on the outputs, quality or
outcomes that may tie at least a portion of a contractor's payment,
contractor extensions, or contract renewals to the achievement of
specific, measurable performance standards and requirements.
These contract may include monetary and non-monetary
incentives as well as specific remedies.
fiduciary duty Correct Answer An individual's obligation to serve
the best interests of selected stakeholders, especially those of
their employer.
,sampling Correct Answer A technique used to avoid examination
of each item in a population, yet will still be able to determine
whether the entire population shall be accepted as complying with
the acceptable quality level or stated requirements.
value analysis Correct Answer An organized effort directed at
analyzing the functions of a product or service including
specifications, standards, practices, and procedures with intent to
satisfy the required function at the lowest possible cost without
impacting functional need and suitability.
drayage Correct Answer A charge for hauling something between
various locations by a transportation company.
income statement Correct Answer A financial report that shows
an organization's profitability over a period of time - months,
quarter, or year.
legacy system Correct Answer An outdated computer system
that remains in use despite the availability or more current
technology. It usually is an archaic data management platform
that may contain proprietary custom designed software such as
an old database management system running on mainframes.
May run financial's, payroll, human resources, purchasing, supply
management, inventory control and other business processes.
The name given to a "home grown" technology system.
SWOT analysis Correct Answer Utilized as a strategic planning
tool to improve organizational effectiveness. Developed by Alfred
Humphrey for business analysis.
benchmarking Correct Answer The act of measuring a process,
service, or product against the characteristics of the recognized
leaders in the given area of review. A study, review, or process
whereby a procurement organization identifies world-class
, organizations with which to compare its practices, policies and
performance outcomes. an organization's performance is judged
against selected criteria from other organizations deemed "bets in
class".
Make-or-Buy Analysis Correct Answer milestoneDetermines the
cost effectiveness of producing goods or services in-house vs.
procuring them from outside the organization.
partial payments Correct Answer payments that permit the
contractor to invoice at intervals to coincide with the delivery and
acceptance of incremental supplies or services.
Cost Plus Fixed Fee Correct Answer a contract whereby the
contractor is reimbursed for its actual incurred cost for material,
labor and other agreed to incidentals, plus a fixed sum
established in the contract.
Qualified Products List (QPL) Correct Answer A list of products
that have been examined, tested, and have satisfied all applicable
qualification requirements
cost-benefit analysis Correct Answer a comparative evaluation of
the trade off between the cost of a good or service and the value
or benefit to be obtained to choose among alternatives
expedite Correct Answer the effort to assure delivery of goods
purchased in accordance with a time schedule. An attempt to rush
or improve a delivery date.
Law of Agency Correct Answer the legal relationship formed
between two people when one person agrees to perform work for
another person.
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