CPRM QUESTIONS WITH 100% ACCURATE
ANSWERS
5.3 Identify the areas of construction that are most vulnerable to storm damage and describe mitigation
methods used to reduce wind-related loss - Accurate answers ROOF - Hip roof (4 slopes) perform
better than gable (2 slopes). Dormer on gable roof is weakest point of roof line. Gable roofs are more
common/less expensive. -Roof attachments/materials, roof to deck attachment or roof to wall
attachment. Unlike a toe nail (typical connection with nail driven at angle that is easily pulled out)
hurricane clips connect the top plate to trusses or rafters, greatly increasing strength of connections.
Wraps/straps. Structural - anchor bolts structurally connected. Reinforced concrete roof.
SECONDARY WATER RESISTANT (SWR) BARRIER - Prevents water from entering after primary roof
covering has failed.
OPENING PROTECTION - Garage doors - hurricane proof or wind resistant or reinforce with vertical
pracing. Glazed openings - impact glass/hurricane glass. Shutter systems.
3.1 Apply the steps in IDENTIFICATION and Analysis to a client's residential property exposures. -
Accurate answers 1. Residential Homes
a) Primary, secondary, seasonal, city split, farm/ranch
b) Condo/Co-op
c) Locations (accessibility - unique locations, Protection Class, subject to natural disasters, multiple
homes on same property (estate homes, ranch, etc)
d) Rental exposures (rented to others, Airbnb, VRBO, etc)
2) Other structures on the premises
a) traditional in nature (garages, barns, pools, pool house, guest house, water features, decks,
hardscape, etc. Valuation of each. Personal and/or business use.
b) Non-traditional in sue (bridges, churches, recreated shops, diners, etc. Valuation of each. Persona
and/or business use.
3) Other structures - AWAY from premises
a) boat dock, dock, steps, etc.
b) location - subject to natural disaster
c) personal and/or business use
4) Other real property
a) garage away from residence (value, location, what is stored, personal/business, security alarms
b) Property on hunting land (type and value of structures, value of PP kept there)
c) Rental properties (# and locations, types and values, biz/personal, frequency of inspection,
maintenance responsibilities.
5) Children at school
a) property for which a lease holds client responsible
b) value of PP located there
6) Airport hangers (location, value, lease agreement)
7) Marina slips (location, subject to natural disaster, value, lease agreement)
, 1.1 Why does the source of a clients wealth need to be considered during the risk management process
- Accurate answers 1) Each source of wealth creates its own unique exposure
2) Source of wealth may influence the client's risk taking nature (capacity and willingness to take on risk)
1.1 What are the sources of wealth? - Accurate answers Equity wealth (owned business), Post-
equity wealth (sale of business), Self-employed, Salaried Wealth, Inherited Wealth, Fortuitous Wealth
(lottery, life settlement)
1.1 Provide characteristics of each source of wealth - Source: EQUITY WEALTH - Accurate answers
Wealth created from an owned private business, often family owned and operated, heavily marketed
with owners often well-known in the community, individual is deeply invested in both time and energy
1.1 Provide characteristics of each source of wealth - Source: POST EQUITY WEALTH - Accurate
answers Wealth created when a business is sold, individual is now independently wealthy, sale
might be newsworthy, typically begins to look to start another business (entrepreneurial DNA)
1.1 Provide characteristics of each source of wealth - Source: SELF EMPLOYED - Accurate answers
Less than 20% of workforce but 67% of millionaires; 75% consider themselves entrepreneurs; 25% are
professionals (doctors, dentists, accountants)
1.1 Provide characteristics of each source of wealth - Source: SALARIED WEALTH - Accurate answers
C-suite or senior manager, wealth accumulated over time from salary, bonus, stock, equity; may not see
themselves as wealthy
1.1 Provide characteristics of each source of wealth - Source: INHERITED WEALTH - Accurate answers
Less than 12% of ultrahigh net worth attain wealth from inheritance (limited sales opportunity); often
comes with strings attached; may involve trusts and/or other family protections
1.1 Provide characteristics of each source of wealth - Source: FORTUITOUS WEALTH - Accurate answers
Wealthy by accident or chance; may not be as careful in retaining wealth (easy come/easy go mentality);
lottery winner, celebrity, life/injury settlement, pro athlete, whistleblower
1.1 Identify exposures associated with each source of wealth - Source: EQUITY WEALTH - Accurate
answers High profile, crossover between biz and personal, family-owned (multi-generational, gifting,
sharing, joint assets), involved in charities or foundations.
1.1 Identify exposures associated with each source of wealth - Source: POST-EQUITY WEALTH -
Accurate answers Kidnap, ransom and extortion due to public knowledge of wealth, estate planning
is more complicated, serve on boards/charitable activities, exotic travel, expensive/risky toys
1.1 Identify exposures associated with each source of wealth - Source: SELF-EMPLOYED - Accurate
answers May have home office with clients coming on premises, business exposures (BPP, GL, WC,
EPLI), Use of social media makes them recognizable
1.1 Identify exposures associated with each source of wealth - Source: SALARIED - Accurate answers
High profile which potentially increases severity of any liability loss; serve on non-profit or for-profit
boards
ANSWERS
5.3 Identify the areas of construction that are most vulnerable to storm damage and describe mitigation
methods used to reduce wind-related loss - Accurate answers ROOF - Hip roof (4 slopes) perform
better than gable (2 slopes). Dormer on gable roof is weakest point of roof line. Gable roofs are more
common/less expensive. -Roof attachments/materials, roof to deck attachment or roof to wall
attachment. Unlike a toe nail (typical connection with nail driven at angle that is easily pulled out)
hurricane clips connect the top plate to trusses or rafters, greatly increasing strength of connections.
Wraps/straps. Structural - anchor bolts structurally connected. Reinforced concrete roof.
SECONDARY WATER RESISTANT (SWR) BARRIER - Prevents water from entering after primary roof
covering has failed.
OPENING PROTECTION - Garage doors - hurricane proof or wind resistant or reinforce with vertical
pracing. Glazed openings - impact glass/hurricane glass. Shutter systems.
3.1 Apply the steps in IDENTIFICATION and Analysis to a client's residential property exposures. -
Accurate answers 1. Residential Homes
a) Primary, secondary, seasonal, city split, farm/ranch
b) Condo/Co-op
c) Locations (accessibility - unique locations, Protection Class, subject to natural disasters, multiple
homes on same property (estate homes, ranch, etc)
d) Rental exposures (rented to others, Airbnb, VRBO, etc)
2) Other structures on the premises
a) traditional in nature (garages, barns, pools, pool house, guest house, water features, decks,
hardscape, etc. Valuation of each. Personal and/or business use.
b) Non-traditional in sue (bridges, churches, recreated shops, diners, etc. Valuation of each. Persona
and/or business use.
3) Other structures - AWAY from premises
a) boat dock, dock, steps, etc.
b) location - subject to natural disaster
c) personal and/or business use
4) Other real property
a) garage away from residence (value, location, what is stored, personal/business, security alarms
b) Property on hunting land (type and value of structures, value of PP kept there)
c) Rental properties (# and locations, types and values, biz/personal, frequency of inspection,
maintenance responsibilities.
5) Children at school
a) property for which a lease holds client responsible
b) value of PP located there
6) Airport hangers (location, value, lease agreement)
7) Marina slips (location, subject to natural disaster, value, lease agreement)
, 1.1 Why does the source of a clients wealth need to be considered during the risk management process
- Accurate answers 1) Each source of wealth creates its own unique exposure
2) Source of wealth may influence the client's risk taking nature (capacity and willingness to take on risk)
1.1 What are the sources of wealth? - Accurate answers Equity wealth (owned business), Post-
equity wealth (sale of business), Self-employed, Salaried Wealth, Inherited Wealth, Fortuitous Wealth
(lottery, life settlement)
1.1 Provide characteristics of each source of wealth - Source: EQUITY WEALTH - Accurate answers
Wealth created from an owned private business, often family owned and operated, heavily marketed
with owners often well-known in the community, individual is deeply invested in both time and energy
1.1 Provide characteristics of each source of wealth - Source: POST EQUITY WEALTH - Accurate
answers Wealth created when a business is sold, individual is now independently wealthy, sale
might be newsworthy, typically begins to look to start another business (entrepreneurial DNA)
1.1 Provide characteristics of each source of wealth - Source: SELF EMPLOYED - Accurate answers
Less than 20% of workforce but 67% of millionaires; 75% consider themselves entrepreneurs; 25% are
professionals (doctors, dentists, accountants)
1.1 Provide characteristics of each source of wealth - Source: SALARIED WEALTH - Accurate answers
C-suite or senior manager, wealth accumulated over time from salary, bonus, stock, equity; may not see
themselves as wealthy
1.1 Provide characteristics of each source of wealth - Source: INHERITED WEALTH - Accurate answers
Less than 12% of ultrahigh net worth attain wealth from inheritance (limited sales opportunity); often
comes with strings attached; may involve trusts and/or other family protections
1.1 Provide characteristics of each source of wealth - Source: FORTUITOUS WEALTH - Accurate answers
Wealthy by accident or chance; may not be as careful in retaining wealth (easy come/easy go mentality);
lottery winner, celebrity, life/injury settlement, pro athlete, whistleblower
1.1 Identify exposures associated with each source of wealth - Source: EQUITY WEALTH - Accurate
answers High profile, crossover between biz and personal, family-owned (multi-generational, gifting,
sharing, joint assets), involved in charities or foundations.
1.1 Identify exposures associated with each source of wealth - Source: POST-EQUITY WEALTH -
Accurate answers Kidnap, ransom and extortion due to public knowledge of wealth, estate planning
is more complicated, serve on boards/charitable activities, exotic travel, expensive/risky toys
1.1 Identify exposures associated with each source of wealth - Source: SELF-EMPLOYED - Accurate
answers May have home office with clients coming on premises, business exposures (BPP, GL, WC,
EPLI), Use of social media makes them recognizable
1.1 Identify exposures associated with each source of wealth - Source: SALARIED - Accurate answers
High profile which potentially increases severity of any liability loss; serve on non-profit or for-profit
boards
