Exam (elaborations)

CPCU 520 PRACTICE EXAM 2025 |GUARANTEED ACCURATE ANSWERS

1 purchase

Course
CPCU 520

Institution
CPCU 520

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. - ACCURATE ANSWERS B. Loss adjustment expenses. Insurer Y is small but has a specialty insurance market for high-val...

[Show more]

Preview 4 out of 37 pages

View example

Uploaded on December 30, 2024
Number of pages 37
Written in 2024/2025
Type Exam (elaborations)
Contains Questions & answers

cpcu 520 practice exam
cpcu 520 practice exam 2025 guaranteed accurate a
the expenses associated with adjusting claims are

Institution CPCU 520
Course CPCU 520

EXAMLINKS Member since 11 months 26 documents sold

$16.49

Add to cart

Save

100% satisfaction guarantee
Immediately available after payment
Both online and in PDF
No strings attached

CPCU 520 PRACTICE EXAM 2025 |
GUARANTEED ACCURATE
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. - ACCURATE ANSWERS✔✔ 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. - ACCURATE ANSWERS✔✔ 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:

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. - ACCURATE ANSWERS✔✔ 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. - ACCURATE ANSWERS✔✔ 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. - ACCURATE
ANSWERS✔✔ 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?
Select one:

, A. Psychographic
B. Behavioristic
C. Geographic
D. Demographic - ACCURATE ANSWERS✔✔ 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 - ACCURATE ANSWERS✔✔ 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.

The benefits of buying summaries with Stuvia:

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

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

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 EXAMLINKS. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $16.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69978 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Seller

Exam (elaborations) ·

Package deal ·

Exam (elaborations)

CPCU 520 PRACTICE EXAM 2025 |GUARANTEED ACCURATE ANSWERS

Document information

Subjects

Written for