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CPCU 500 Exam Questions- Managing Evolving Risks
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CPCU 500 Exam Questions- Managing Evolving Risks
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CPCU 500 Exam Questions- ManagingEvolving Risks
Which one of the following statements about the use of drones is true? - -
Drones may be equipped with cameras that relay data in real-time
-Which one of the following uses infrared light to detect nearby objects? - -
Lidar
-AMRM Insurance Company sells insurance in Virginia, North Carolina, South
Carolina, and Georgia. The company has compiled a policyowner data base
that can be used to send text messages when hurricanes approach. The
company provides early warnings, storm updates from the National Weather
Service, and hurricane safety measures. The company credits the system
with reduced hurricane claims. The use of the texting system is an example
of - -Preventive analytics
-Clear-Rite Company specializes in the clean-up of hazardous chemical
spills. Workers performing clean-up operations must use safety suits to
prevent exposure to the chemicals. The suits include pulse and respiration
monitors, body temperature sensors, and chemical sensors. The monitors
and sensors report data to a mobile operations center which is deployed to
each clean-up site. The pulse and respiration monitors and the sensors that
are part of the protective gear are called - -Wearable technologies
-The traditional definition of risk management reflects the traditional
concept of risk as - -Negative
-WOTF is true regarding the evolution of risk and risk management? - -The
definition of risk has evolved to included +/- attributes
-Many auto manufacturers have automated a portion of their assembly lines
by introducing a smart product. The smart product performs repetitive tasks,
such as making the same weld on each vehicle frame as it passes the smart
product. These smart products, which can be fixed or mobile, reduce
repetitive motion injuries that humans might suffer. They can also be used to
perform dangerous tasks and in heavy-lifting jobs. These smart products are
called - -Robots
-Which one of the following is described as a distributed database that
serves as a collectively shared ledger? - -Blockchain
-Autonomous Vehicle Applications (AVA) is a start-up company that develops
safety technologies that can be sold to companies that are producing
,autonomous vehicles. One technology AVA is developing allows an
autonomous vehicle to detect, extract, and analyze images; and then to
respond to the images. For example, the technology would detect a presence
in a crosswalk, extract the image, and a computer would analyze the image.
When the image was determined to be a human being, the vehicle would
slow down or stop until the crosswalk was clear. This technology, which is
designed to capture and analyze images, and to act on the recognition of the
image; is called - -Computer vision
-Catastrophes such as recent earthquakes and the 2011 tsunami in Japan
pointed out a need for many organizations to evaluate and manage their - -
Supply-chain risk
-Which one of the following best explains how most smart products
potentially improve risk management? - -They generate big data to which
advanced analytics can be applied
-Take Your Order (TYO) is a company that specializes in taking product
orders for vendors. The manufacturer of a product can run a television or
internet ad for a product with a toll-free number. Customer calls for the
products are routed to TYO, where one hundred operators are available to
receive the calls. Each operator is assigned a cubicle with a computer
terminal, video display monitor, and a telephone. TYO experienced high
workers compensation claims from its operators, claiming neck strain, eye
strain, and wrist pain. In an effort to reduce such injuries, TYO evaluated
each operator's work area. The height of chairs and video monitors were
adjusted, curved computer keyboards and wrist-rests were provided, and the
telephones were replaced with audio headsets. Workers compensation costs
dropped significantly. The science of designing work spaces based on
interaction between people and the equipment in the work s - -Ergonomics
-Don is the Risk Manager for Rafferty Corporation. One of his peers, Sally,
asks him one day, "How do you define risk?" When Don replies, which one of
the following statements is accurate? - -Risk has different meanings within
the risk management and insurance communities.
-In an effort to reduce expenses, increase profitability, and reduce human
errors; ABC Insurance Company decided to automate most of its personal
lines underwriting function. The company now uses standardized application
forms that are submitted electronically to one of the company's regional
offices. At each regional office, a computer with a scanner reads the
applications. The computer has been programmed with acceptable answers
to the questions. If the answers on the application are all acceptable, the
policy is automatically issued. Rejected applications are automatically
forwarded to a human underwriter who reviews them. The use of this
technology has reduced the company's expense ratio by two and a half
,percent, and reduced the time it takes to issue a policy. ABC Insurance
Company's use of computers to evaluate applications electronically is an
application of - -Artificial intelligence
-A municipal water plant installed water flow sensors and water pressure
sensors on the water pipes leaving the plant. The sensors make sure water is
flowing properly and that there are no leaks or clogs which could produce a
loss. These types of sensors are - -Mechanical sensors
-Which one of the following is a tool that can be used by fraud investigators
to compare documents and analyze notes? - -Text mining
-Last year, three Metro City firemen died responding to a fire at a chemical
plant, when they were overcome by toxic fumes. In response, Metro City is
purchasing advanced first responder gear. It includes special flame retardant
suits with chemical and explosive fume sensors, air quality sensors, and heat
sensors. Responders will also wear special watches that will track a
responder's pulse, respiration, and blood pressure; and helmets that include
video cameras. All of these sensors will feed data to a computer in real-time.
The computer will analyze the data and issue threat levels and evacuation
orders, if necessary. The protective gear Metro City will purchase and the
data transmission and analysis capability illustrate the use of - -Smart
products
-Precision Electronic Components manufactures circuit boards, microchips,
and other electronic products. Given the precision necessary for their
products, the manufacturing environment must be controlled. Temperature,
humidity, static electricity and other factors must be monitored. After losing
several batches of products due to human monitoring failures and imprecise
adjustments, the company moved to a system of sensors. The sensors
monitor and regulate temperature, humidity, static electricity, and other
factors. The sensors transmit data to and from each other, and the
manufacturing environment is continuously adjusted to assure production is
successful. The network of sensors transmitting data and the autonomous
corrective actions without human interaction is called - -The Internet of
Things
-Mutual Fund Company (MFC) offers a wide array of mutual fund options to
investors. Each mutual fund has a different fund objective and set of
investment guidelines that apply to the fund. While MFC gives considerable
freedom to its fund portfolio managers, they are required to abide by the
fund's investment guidelines. To monitor compliance, MFC developed a
computer algorithm. The computer algorithm continuously monitors each
fund's compliance with investment guidelines. If a fund manager violates the
investment guidelines, the computer immediately notifies MFC's internal
control director, and corrective action is taken. MFC's use of the computer
, algorithm to monitor investment compliance and to provide notification when
corrective action is necessary illustrates use of - -Artificial intelligence
-Data Entry Company (DEC) offers customers data entry services. A
customer can hire DEC to enter survey data to be analyzed. Many DEC
employees spend long hours entering data on a computer. DEC has
experienced neck strain and wrist pain complaints from their employees,
increasing the company's workers compensation costs. DEC investigated the
complaints of its data-entry employees. DEC adopted curved keyboards for
data entry, wrist-rests for those entering data, and uniform chair heights and
display monitor heights to reduce neck strain claims. The science of
designing work spaces based on the health concerns of those who will
operate in the work space is called - -Ergonomics
-WOTF is an ex of wearable? - -Helmets that monitor fatigue
-The National Ocianic (NOA) Monitors tsunami risk. Using the tsunami
detection buyous (smart prod) illustrates - -CAT management
-WOTF data capture tools has led to an explosion of risk management
innovation by allowing smart products to transmit data? - -Internet of Things
-The diff between risk tech & insuretech is - -Risk tech goes beyond
insuretech by expanding its focus to making risk financing more efficient &
preventing & mitigating losses in a variety of indv.
-Risk managers today differ from traditional risk managers in WOTF ways? -
-They attempt to min threats & optimize opportunities
-In addition to metal detectors, many airports have installed a 2nd type of
scanning tech 4 checked baggage & cargo to detect explosives based on air
samples. Which sensor used for risk assemt and control? - -Biochemical
sensors (home diagnosis tests, wearable fitness monitors, diabetes tests)
-William is a risk manager for Green Mountain Trucking. He has always
analyzed auto loss frequency and severity rates for the fleet. William would
like to collect data on vehicle speeds, braking patterns, and distance
traveled and compare that with the loss history. Which one of the following
would help William capture and analyze this data? - -Vehicle Telematics
-Southwest Interstate Railroad (SIR) is concerned about the number
derailments in recent years. It's not cost effective to use human assets to
inspect tracks, bridges, and trestles. Instead, SIR has started to use drones.
A drone can fly low over tracks and above/below bridges and trestles. The
drones record video that is transmitted to corporate headquarters where it is
simultaneously scanned for derailment hazards. In the past six months, the
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