CPCU 520 PRACTICE EXAM 1 2024 WITH 100% CORRECT 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. - correct 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. - correct answer B. Insurer Y can be more nimble, allowing it to respond quickly to an emerging trend or change.