Cpcu 500 Top Graded Compiled Package Deal Questions and CORRECT Answers

1-1. Describe the expenses that constitute an organization's cost of risk regardless of whether losses are retained or transferred. - These expenses form part of the cost of risk regardless of whether losses are retained or transferred: - Administrative expenses: include the cost of internal a...

Insurable Interest - An interest in the subject of an insurance policy that is not unduly remote and that would cause the interested party to suffer financial loss if an insured event occurred. Factual expectancy - A situation in which a party experiences an economic advantage if an insured e...

Which one of the following statements about the use of drones is true? A. The reliance on humans to operate drones severely limits their application for commercial uses. B. Drones may be equipped with cameras that relay data in real-time. C. The use of drones is limited to military applications...

Economy of Operations - increase departmental and organizational efficiency, pre-loss risk mgmt goal Toerable uncertainty - provide an awareness of potential losses and an assurance of their effective management keeping the worry of accidental loss at a tolerable level (pre-loss risk mgmt goa...

For public entities such as cities, counties and public utilities, which one of the following is normally the most important post-loss risk management goal? Choose one answer. A. Growth B. Profitability C. Continuity of operations D. Earnings stability - C. Continuity of operations Whic...

probability - the likelihood that an outcome or event will occur pure risk - a chance of loss or no loss, but no chance of gain speculative risk - a chance of loss, no loss or gain credit risk - the risk that customers or other creditors will fail to make promised payments as they come due sub...

Key questions in determining insurable interest - 1. What is insurable interest 2. When must insurable interest exist 3. Why require insurable interest 4. What is the legal basis of insurable interest 5. What happens when insurable interest overlap Problems associated with maintain insurance to...