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CPCU 500 - Full Practice Exam (100+questions) with verified solutions
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CPCU 500 - Full Practice Exam (100+questions)with verified solutions
In |order |to |achieve |collaboration, |group |leaders |must
A. |Remain |focused |on |achieving |the |goals |of |their |individual |groups.
B. |Focus |on |the |worker's |personality |rather |than |results.
C. |Remain |focused |on |preventing |stakeholders |from |straying |from |the |common |goal.
D. |Promote |competition |among |members |of |the |group. |- |correct |answer |-C. |Remain |focused |on |
preventing |stakeholders |from |straying |from |the |common |goal.
Which |of |the |following |risk |management |program |goals |is |an |essential |goal |for |all |public |entities?
A. |Survival
B. |Continuity |of |operations
C. |Growth
D. |Earning |stability |- |correct |answer |-B. |Continuity |of |operations
Which |one |of |the |following |is |described |as |a |distributed |database |that |serves |as |a |collectively |shared |
ledger?
A. |Telematics
B. |Big |data
C. |Blockchain
D. |The |Internet |of |Things |- |correct |answer |-C. |Blockchain
The |original |cost |of |a |property |is |known |as |the
,A. |Replacement |cost.
B. |Historical |cost.
C. |Market |value.
D. |Tax-appraised |value. |- |correct |answer |-B. |Historical |cost.
Which |one |of |the |following |statements |is |true |if |earnings |at |risk |are |$200,000 |with |90% |confidence?
A. |Earnings |at |risk |are |projected |to |be |$180,000.
B. |Earnings |at |risk |are |projected |to |be |less |than |$200,000 |10% |of |the |time.
C. |Earnings |at |risk |are |projected |to |be |$200,000 |90% |of |the |time.
D. |Earnings |at |risk |are |projected |to |be |greater |than |$200,000 |10% |of |the |time. |- |correct |answer |-B. |
Earnings |at |risk |are |projected |to |be |less |than |$200,000 |10% |of |the |time.
Which |one |of |the |following |statements |is |true |regarding |event |tree |analysis?
A. |Event |tree |analysis |can |be |used |to |select |the |most |effective |strategy |to |achieve |a |goal.
B. |Event |tree |analysis |provides |only |quantitative |information.
C. |Event |tree |analysis |provides |only |qualitative |information.
D. |Event |tree |analysis |typically |provides |only |two |options, |success |or |failure. |- |correct |answer |-D. |
Event |tree |analysis |typically |provides |only |two |options, |success |or |failure.
Regression |analysis |assumes |that
A. |The |variable |being |forecast |varies |predictably |with |another |variable.
B. |Dependent |variables |are |unaffected |by |independent |variables.
C. |For |any |given |past |year, |the |projected |trend |value |will |be |the |same |as |the |actual |outcome.
D. |The |linear |regression |line |is |more |accurate |the |further |it |gets |from |the |actual |data |values |used. |- |
correct |answer |-A. |The |variable |being |forecast |varies |predictably |with |another |variable.
,Taylor |owns |Paoli |Hardware, |a |mid-sized |hardware |store |with |25 |employees. |Paoli |Hardware |has |won
|best |local |hardware |store |3 |years |in |a |row. |Taylor |would |like |to |expand |operations |and |has |
undertaken |a |SWOT |analysis.
His |most |dedicated |customers |are |generally |over |40 |years |old |and |engaged |in |small |house |projects, |
but |his |biggest |revenue |generator |continues |to |be |the |sale |of |lumber. |He |would |like |to |obtain |more |
commercial |customers |and |increase |lumber |sales.
One |of |the |major |complaints |Taylor |hears |from |his |customers |is |the |difficulty |finding |local |
contractors. |So, |he |is |considering |hiring |a |general |contractor |at |the |store |who |would |also |make |house
|calls |to |assist |customers. |This |will |allow |him |to |bill |for |labor |and |increase |the |sale |of |his |products, |
but |he |is |concerned |it |may |increase |his |insurance |claims |and |premiums.
One |of |the |younger |store |employees |suggested |they |create |a |website |to |expand |sales |to |on-line |
purcha |- |correct |answer |-d. |Technological |advancements
The |level |of |confidence |an |organization |places |in |the |organization's |risk |management |culture, |
practices, |and |procedures |is |called
A. |Risk |tolerance.
B. |Tolerable |uncertainty.
C. |Risk |assurance.
D. |Probable |maximum |loss. |- |correct |answer |-C. |Risk |assurance.
The |process |of |comparing |the |key |risk |indicators |of |an |organization |with |those |of |other |organizations |
in |the |same |industry |is |known |as
A. |Hedging.
B. |Benchmarking.
C. |Trend |analysis.
D. |Root |cause |analysis. |- |correct |answer |-B. |Benchmarking.
An |organization |has |had |a |high |percentage |of |repetitive |stress |injuries |to |workers |in |a |particular |
phase |of |their |production |process. |The |risk |manager |has |been |asked |to |analyze |these |injuries |from |a |
system |safety |analysis |perspective. |Which |one |of |the |following |techniques |should |the |risk |manager |
use |to |investigate |these |accidents?
, A. |Failure |mode |and |effects |analysis
B. |Job |safety |analysis
C. |Future |states |analysis
D. |Strategy |analysis |- |correct |answer |-B. |Job |safety |analysis
An |organization |can |use |securitization |to |exchange
A. |Cash |for |income-producing |assets.
B. |Debt |for |income-producing |assets.
C. |Income-producing |assets |for |cash.
D. |Liabilities |for |mortgage |receivables. |- |correct |answer |-C. |Income-producing |assets |for |cash
Which |one |of |the |following |best |explains |how |most |smart |products |potentially |improve |risk |
management?
A. |They |assess |risks |in |dangerous |areas.
B. |They |generate |big |data |to |which |advanced |analytics |can |be |applied.
C. |They |scan |and |inspect |structures |for |unsafe |conditions.
D. |They |measure |worker |fatigue. |- |correct |answer |-B. |They |generate |big |data |to |which |advanced |
analytics |can |be |applied.
Tania |works |in |the |fraud |unit |for |Greatview |Insurance. |There |is |a |claimant |who |appears |to |be |
involved |in |multiple |cases |of |insurance |fraud. |Tania |decides |to |use |social |media |to |obtain |information
|that |may |be |used |to |develop |a |profile |of |the |claimant. |Tania's |use |of |social |media |is |an |example |of |
which |one |of |the |following |types |of |data?
A. |Unstructured |external
B. |Unstructured |internal
C. |Structured |internal
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