ARM 402 EXAM STUDYGUIDE with complete QUESTIONS
WITH 100% CORRECT VERIFIED ANSWERS LATEST
UPDATE 2026
Conor needs to deliver an important message to his
staff. He has scheduled a meeting in a conference room
with his staff of 10 individuals. Which one of the
following is the best way for Conor to use his body
language to convey confidence in his message and
interest in his staff?
A. Conor should walk around the room standing over
different individuals as he speaks.
B. Conor should sit up and lean slightly toward the
audience.
C. Conor should keep his hands folded on the table to
avoid distracting motions.
D. Conor should sit at the end of the table leaning back
in his chair.
Conor should sit up and lean slightly toward the
audience.
Jepson Manufacturing Company is a U.S.-based
company with operations in Mexico, Canada, Brazil, and
the Netherlands. Jepson purchases a nonadmitted
Page 1 of 207
,policy in the U.S. and policies from admitted insurers in
each of the countries in which it operates. This
collection of admitted and nonadmitted policies used by
multinational businesses is called
A. A facultative insurance program.
B. An enterprise risk management program.
C. A pure excess insurance program.
D. A controlled master program.
A controlled master program.
Ideally insurable loss exposures are subject to losses
that
A. Occur gradually over long periods of time.
B. Are definite in time, cause, and location.
C. Result from unidentifiable causes.
D. Are immeasurable in terms of frequency or severity
Are definite in time, cause, and location
Commercial general liability insurance policies written
on an occurrence basis apply to bodily injury and
property damage that occurs during the policy period.
Page 2 of 207
,This provision supports the principle that insurable loss
exposures must ideally be
A. Fortuitous.
B. Pure risks.
C. Definite.
D. Independent.
Definite
One of the basic forms for an excess liability policy that
is subject to the same provisions as the underlying
liability policy is the
A. Monoline form.
B. Following-form.
C. Self-contained form.
D. Manuscript form.
Following-form.
Self-contained excess liability policies
A. Can create coverage gaps between excess and
underlying layers.
Page 3 of 207
, B. Typically cover in excess of an exhausted underlying
aggregate limit.
C. Contain a deductible specific to the policy.
D. Have the same conditions as the underlying layer.
Can create coverage gaps between excess and
underlying layers.
Kendall Incorporated is a manufacturer based in the
U.S. which has growing international exposures. It does
not own any permanent offices or manufacturing
facilities in foreign countries, but it does have several
employees who travel to these countries on a fairly
regular basis. Kendall Incorporated purchased an
exporters package policy through its U.S.-based insurer
to cover the incidental exposures in these foreign
countries. Which one of the following coverages will
Kendall need to purchase from admitted insurers in the
individual countries?
A. Crime
B. Personal property
C. Compulsory auto liability
D. Foreign voluntary workers compensation
Compulsory auto liability
Page 4 of 207
WITH 100% CORRECT VERIFIED ANSWERS LATEST
UPDATE 2026
Conor needs to deliver an important message to his
staff. He has scheduled a meeting in a conference room
with his staff of 10 individuals. Which one of the
following is the best way for Conor to use his body
language to convey confidence in his message and
interest in his staff?
A. Conor should walk around the room standing over
different individuals as he speaks.
B. Conor should sit up and lean slightly toward the
audience.
C. Conor should keep his hands folded on the table to
avoid distracting motions.
D. Conor should sit at the end of the table leaning back
in his chair.
Conor should sit up and lean slightly toward the
audience.
Jepson Manufacturing Company is a U.S.-based
company with operations in Mexico, Canada, Brazil, and
the Netherlands. Jepson purchases a nonadmitted
Page 1 of 207
,policy in the U.S. and policies from admitted insurers in
each of the countries in which it operates. This
collection of admitted and nonadmitted policies used by
multinational businesses is called
A. A facultative insurance program.
B. An enterprise risk management program.
C. A pure excess insurance program.
D. A controlled master program.
A controlled master program.
Ideally insurable loss exposures are subject to losses
that
A. Occur gradually over long periods of time.
B. Are definite in time, cause, and location.
C. Result from unidentifiable causes.
D. Are immeasurable in terms of frequency or severity
Are definite in time, cause, and location
Commercial general liability insurance policies written
on an occurrence basis apply to bodily injury and
property damage that occurs during the policy period.
Page 2 of 207
,This provision supports the principle that insurable loss
exposures must ideally be
A. Fortuitous.
B. Pure risks.
C. Definite.
D. Independent.
Definite
One of the basic forms for an excess liability policy that
is subject to the same provisions as the underlying
liability policy is the
A. Monoline form.
B. Following-form.
C. Self-contained form.
D. Manuscript form.
Following-form.
Self-contained excess liability policies
A. Can create coverage gaps between excess and
underlying layers.
Page 3 of 207
, B. Typically cover in excess of an exhausted underlying
aggregate limit.
C. Contain a deductible specific to the policy.
D. Have the same conditions as the underlying layer.
Can create coverage gaps between excess and
underlying layers.
Kendall Incorporated is a manufacturer based in the
U.S. which has growing international exposures. It does
not own any permanent offices or manufacturing
facilities in foreign countries, but it does have several
employees who travel to these countries on a fairly
regular basis. Kendall Incorporated purchased an
exporters package policy through its U.S.-based insurer
to cover the incidental exposures in these foreign
countries. Which one of the following coverages will
Kendall need to purchase from admitted insurers in the
individual countries?
A. Crime
B. Personal property
C. Compulsory auto liability
D. Foreign voluntary workers compensation
Compulsory auto liability
Page 4 of 207
