CPCU 500
CPCU 500 PRACTICE EXAM - ASSIGNMENT 2 QUESTIONS AND
CORRECT DETAILED ANSWERS NEWEST!!!
1. In insurance terminology, trucks, trailers, buses, fire engines, and ambulances designed for road
use are examples of which one of the following categories of motor vehicles? - ANSWER ✔ -
Auto
2. Property insurance policies generally refer to the contents of a commercial building as - ANSWER
✔ - Business personal property
3. When a person or business borrows money to buy a home or a building, - ANSWER ✔ - the
borrower is called a mortgagor
4. Liability entries on an organization's balance sheet are particularly useful to the risk professional
for identifying - ANSWER ✔ - Obligations such as mortgage payments
5. To be effective, inspections should be accompanied - ANSWER ✔ - by discussions with front-line
personnel who can identify nonobvious loss exposures.
6. Which one of the following statements is true regarding the use of checklists and questionnaires
to identify loss exposures? - ANSWER ✔ - The questionnaires developed by insurers, called
insurance surveys, relate mainly to loss exposures for which commercial insurance is generally
available.
7. . Monitoring and maintaining compliance through compliance reviews can - ANSWER ✔ -
prevent significant losses that the organization would otherwise incur.
8. Property insurance policies use the term "personal property" to refer to the - ANSWER ✔ -
Contents of a building.
1|Page
CPCU 500
©®
CPCU 500 PRACTICE EXAM - ASSIGNMENT 2 QUESTIONS AND
CORRECT DETAILED ANSWERS NEWEST!!!
1. In insurance terminology, trucks, trailers, buses, fire engines, and ambulances designed for road
use are examples of which one of the following categories of motor vehicles? - ANSWER ✔ -
Auto
2. Property insurance policies generally refer to the contents of a commercial building as - ANSWER
✔ - Business personal property
3. When a person or business borrows money to buy a home or a building, - ANSWER ✔ - the
borrower is called a mortgagor
4. Liability entries on an organization's balance sheet are particularly useful to the risk professional
for identifying - ANSWER ✔ - Obligations such as mortgage payments
5. To be effective, inspections should be accompanied - ANSWER ✔ - by discussions with front-line
personnel who can identify nonobvious loss exposures.
6. Which one of the following statements is true regarding the use of checklists and questionnaires
to identify loss exposures? - ANSWER ✔ - The questionnaires developed by insurers, called
insurance surveys, relate mainly to loss exposures for which commercial insurance is generally
available.
7. . Monitoring and maintaining compliance through compliance reviews can - ANSWER ✔ -
prevent significant losses that the organization would otherwise incur.
8. Property insurance policies use the term "personal property" to refer to the - ANSWER ✔ -
Contents of a building.
1|Page
CPCU 500
©®
