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ARM 401 Segment C – Questions With Answers (Accurate)
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ARM 401 Segment C – Questions With Answers (Accurate)
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ARM 401 Segment C – Questions With Answers(Accurate)
Insurance Company monitors key indicators of underwriting effectiveness.
Some indicators they monitor include: percentage of business quoted that was
written, application processing time, premium volume handled by
underwriters, skill level of underwriters, and benchmarking between different
underwriting offices. The indicators of underwriting performance Insurance
Company uses are called Right Ans - Control indicators.
Which one of the following statements about blockchain is true? Right Ans
- Blockchain stores a record of transactions across a network of servers.
Which one of the following is an example of a report that would most likely
contain both quantitative and qualitative data? Right Ans - A customer
satisfaction survey
Chuck is Vice President of Claims for Insurance Company. The company has
37 adjusters in the field, and needs to hire four new adjusters. Chuck is
curious about the relationship between prior experience of the adjuster and
policyowner complaints. He collected data on the number of complaints for
each adjuster on staff over time. Then he used a statistical technique to
analyze the relationship between adjuster experience and complaints, and the
trend of the relationship over time. The statistical analysis confirmed that that
there were significantly fewer complaints with more experienced adjusters,
and that the relationship grew stronger with more years of experience. The
technique Chuck used to relate indicators to outcomes is called Right Ans -
Regression analysis.
Which one of the following statements is true regarding operational risk?
Right Ans - Operational risk is integrated in every activity of an organization.
A risk manager's goal when using a social network is Right Ans - To reach
as many end users as possible with the minimum amount of effort.
avoidance Right Ans - reduces the possibility of an action occurring to zero
, loss prevention Right Ans - used when avoidance is impossible or
undesirable
loss reduction Right Ans - plan to restore injured or physically limited if
risk can't be avoided
intellectual property Right Ans - the product of human intelligence that has
economic value
errors and omissions Right Ans - negligent acts (errors) committed by a
person conducting insurance business that give rise to legal liability for
damages; a failure to act (omission) that creates legal liability.
Specific risk control measures to prevent, deter, or mitigate cyber risk
include... Right Ans - - physical controls
- procedural controls
- personnel controls
- managerial controls
- investigation and prosecution of cyber crimes
- post cyber incident rapid recovery program
physical controls include... Right Ans - locked doors, central security
alarms, etc.
procedural controls include... Right Ans - performing task in secure ways
personnel controls help prevent employees from doing things such as
Right Ans - falling for phishing schemes
Risk financing measures for cyber risk include... Right Ans - - insurance
- noninsurance risk transfer
- retention
The foundation of third-party cyber liability loss exposures is based on these
concepts: Right Ans - - customer and trading partner liability
- liability for customer data resulting from invasion of privacy and breach of
contract
- network security liability including liability for damage to a third party
network resulting from a data breach
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