100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
CPCU 520 Practice Exam 1 Questions With Verified Answers $11.49   Add to cart

Exam (elaborations)

CPCU 520 Practice Exam 1 Questions With Verified Answers

 5 views  0 purchase
  • Course
  • CPCU 520
  • Institution
  • CPCU 520

CPCU 520 Practice Exam 1 Questions With Verified Answers The expenses associated with adjusting claims are referred to as Select one: A. Prospective loss costs. B. Loss adjustment expenses. C. Claims costs. D. Operating expenses. - answerB. Loss adjustment expenses. Insurer Y is small but h...

[Show more]

Preview 3 out of 25  pages

  • September 29, 2024
  • 25
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • CPCU 520
  • CPCU 520
avatar-seller
Brainbarter
©BRAINBARTER 2024/2025




CPCU 520 Practice Exam 1 Questions With
Verified Answers


The expenses associated with adjusting claims are referred to as
Select one:


A. Prospective loss costs.
B. Loss adjustment expenses.
C. Claims costs.

D. Operating expenses. - answer✔B. Loss adjustment expenses.
Insurer Y is small but has a specialty insurance market for high-value vehicles. In competing
with a larger insurer with a broader market, Insurer Y is likely to have which one of the
following advantages?
Select one:


A. Insurer Y would have more capital surplus available than a larger insurer would have.
B. Insurer Y can be more nimble, allowing it to respond quickly to an emerging trend or change.
C. Because Insurer Y has a niche market, a larger insurer would not be able to compete on price
due to state rate regulation.
D. Insurer Y is better able to invest in research and product development due to a more narrow
market focus. - answer✔B. Insurer Y can be more nimble, allowing it to respond quickly to an
emerging trend or change.
Which one of the following statements is correct?
Select one:

, ©BRAINBARTER 2024/2025


A. Some of the five ideal characteristics of rates conflict with others, and compromises are often
necessary.
B. Rates are based on what consumers would be willing to pay for insurance coverage, which
can be difficult to determine.
C. A rate can be adequate or it can be competitive, but it cannot be both adequate and
competitive at the same time.
D. From the insurer's perspective, the primary goal of ratemaking is to implement the highest
rates that regulators will allow so as to maximize insurer profits. - answer✔A. Some of the five
ideal characteristics of rates conflict with others, and compromises are often necessary.
To be successful, the differentiation business-level strategy must
Select one:


A. Produce short-term profits while phasing out a product line or existing market.
B. Seek efficiency in all areas of operation to build a competitive advantage.
C. Accurately determine customers' preferences to develop products perceived as distinctive.

D. Focus on one group of customers and offer a low-price product or service. - answer✔C.
Accurately determine customers' preferences to develop products perceived as distinctive.
Which one of the following statements is correct with respect to SWOT analysis?
Select one:


A. Identifying internal strengths and weaknesses involves considering financial, physical,
human, and organizational assets.
B. Managers use SWOT analysis to predict the future state of their companies.
C. SWOT analysis considers a company's internal environment rather than the external
environment.
D. Customers are generally not considered in a SWOT analysis because the focus is on the assets
an organization owns. - answer✔A. Identifying internal strengths and weaknesses involves
considering financial, physical, human, and organizational assets.
Samuelson Insurance has developed special programs to market personal insurance to members
of college alumni and professional associations. This is an example of which one of the
following types of market segmentation?

, ©BRAINBARTER 2024/2025


Select one:


A. Psychographic
B. Behavioristic
C. Geographic

D. Demographic - answer✔D. Demographic
All of the following are challenges that an insurer may face that can hinder a complete alignment
of information technology (IT) and business strategies, EXCEPT:
Select one:


A. Changing IT or business metrics
B. An overly complex IT infrastructure
C. IT professionals assured of their job security

D. IT operating as a separate unit - answer✔C. IT professionals assured of their job security
An applicant for commercial property insurance is found unacceptable by an underwriter due to
the nature of its operations and the construction of the building it occupies. If the applicant
installs an automatic fire-extinguishing sprinkler system, the underwriter will approve the
application. This type of underwriting modification is known as
Select one:


A. Changing insurance rates, rating plans, or policy limits.
B. Requiring risk control measures.
C. Using facultative reinsurance.

D. Amending the policy terms and conditions. - answer✔B. Requiring risk control measures
Which one of the following insurer performance goals is the most difficult to evaluate?
Select one:


A. Meeting social responsibilities

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Brainbarter. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $11.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

75323 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$11.49
  • (0)
  Add to cart