CPCU 500 Chapter 1 Questions & Answers

CPCU 500 Chapter 1 Questions & Answers The rise of big data and predictive analytics will Select one: A. Reduce the frequency of losses but not the severity of losses. B. Eliminate the frequency and severity of losses. C. Increase the frequency and severity of losses. D. Reduce the frequency and severity of losses, but won't eliminate them. D. Reduce the frequency and severity of losses, but won't eliminate them. 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. Transforming what would otherwise be dire circumstances into manageable scenarios. C. Providing a guarantee to mortgage lenders against loss of a home by fire. D. Making loans of funds collected in premiums before losses are paid. D. Making loans of funds collected in premiums before losses are paid. Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:15 Full screen Brainpower Read More 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. Collaborating with the federal government to share costs of rising claims. B. Enhancing fraud detection through data analysis. C. Raising public awareness of the effect on policyholders. D. Changing liability coverage to a claims-made basis. D. Changing liability coverage to a claims-made basis. Which one of the following is an example of a negative perception of insurance that is not based on reality? Select one: A. Insurance did not cover COVID-19 losses because they did not involve property damage. B. After taxes and fees, insurers are left with about 1 cent of profit for every dollar received. C. Insurance is an expensive product that's rarely used and doesn't provide a value commensurate to its cost. D. Insurance is a means of protection, not an investment. C. Insurance is an expensive product that's rarely used and doesn't provide a value commensurate to its cost. Which one of the following has been an insurance industry response to the Coronavirus pandemic Select one: A. Issue auto premium rebates to insureds. B. Widespread approval of business interruption claims. C. Exclude "black swan" events from coverage. D. Revise homeowners insurance to include ride-share coverage. A. Issue auto premium rebates to insureds. The proliferation of insurtech and risktech in every area of insurer operations is generating a wealth of predictive information than can help insurers more accurately assess risk, predict fraud, identify efficiencies, and set strategy. But which one of the following is required to make sure the data is gathered and applied in the appropriate context? Select one: A. Qualitative analysis B. General knowledge C. Human perspective D. Data science C. Human perspective Big data and predictive analytics Select one: A. Will not the frequency or severity of losses. B. Will reduce the severity of losses, but not the frequency. C. Will reduce the frequency and severity of losses. D. Will reduce the frequency of losses, but not the severity. C. Will reduce the frequency and severity of losses. Which one of the following is a good strategy for anyone to develop interest in the insurance industry? Select one: A. Concentrate on one sector of company operations. B. Leverage personal interests into areas of expertise. C. Work with a manager who can help assure data is gathered and applied in the appropriate context. D. Learn more about data analytics. B. Leverage personal interests into areas of expertise. Bethany is a new customer service representative for a large insurer. She is taking courses outside of her employment in data analytics and data science to help her understand different ways to analyze risks and expand her insurance knowledge. She believes this will help her in her long-term career goals. What is a reason her manager would support and encourage her to continue to pursue educational opportunities in data science? Select one: A. Employees who seek education outside their employer usually leave the company for a different type of job. B. Individuals who can work with data and effectively collaborate with data science teams are critical components in every insurer function. C. Employees who understand data science terminology make the best sales people. D. Individuals who work with people outside of their employers show better teamwork skills. B. Individuals who can work with data and effectively collaborate with data science teams are critical components in every insurer function. Which one of the following statements is true about the insurance industry? Select one: A. While technology is playing an expanding role in the insurance industry, the industry requires a broad spectrum of talent. B. The insurance industry will have fewer positions available because more young professionals are moving into that industry. C. Insurers focus on hiring claims, underwriting and sales positions. D. Most insurance jobs are, or soon will be, automated. A. While technology is playing an expanding role in the insurance industry, the industry requires a broad spectrum of talent.