1|Page
CPCU 520 Exam NEWEST VERSION 2025/ 2026 WITH
COMPLETE QUESTIONS AND SOLUTION 100%
VERIFIED ANSWERS WITH RATIONALES A+ GRADED
FREE||NEWEST EXAM!!!
Workers compensation insurance benefits are established
by statute. If legislation or a court decision changes these
benefits, past losses must be adjusted to
Select one:
A. A state specific percentage of benefits level.
B. Mandatory minimum benefit requirements.
C. Current inflation levels.
D. Current benefit levels. - ANSWER-D. Current benefit
levels.
Every insurer has its own set of unique challenges, which
can hinder the complete alignment of information
technology (IT) and business strategies. Which one of the
following statements best describes how an organization
can overcome one of those challenges?
Select one:
A. Have IT staff guide internal and external customers
through the learning curve and encourage acceptance of
IT initiatives.
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B. Tie IT staff's job security to the success with which they
explain and rationalize the development and launch of
new IT projects.
C. Focus primarily on retention and retrofitting of legacy
systems and existing infrastructure rather than updating to
new ones.
D. Ensure that IT personnel see themselves as a separate
unit apart from the insurance part of the organization. -
ANSWER-A. Have IT staff guide internal and external
customers through the learning curve and encourage
acceptance of IT initiatives.
Claims departments use techniques such as network
analysis and clustering to help them
Select one:
A. Acknowledge and assign claims.
B. Resolve claims through alternative dispute resolution.
C. Set fair and adequate reserves.
D. Identify and prevent fraud. - ANSWER-D. Identify and
prevent fraud.
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When an insurer is selecting a market segment to target,
which one of the following is an important factor of the
external environment the insurer should consider?
Select one:
A. Distribution channels
B. Technical resources
C. Product mix
D. Laws and regulations - ANSWER-D. Laws and
regulations
Which one of the following is a limitation of the loss
development method of estimating loss reserves?
Select one:
A. Large one-time events such as catastrophes would
disrupt the historical pattern of development.
B. The loss development method only uses one year of
loss experience.
C. The loss development triangle must be built up month
after month.
D. The loss development method assumes that future
experience will rarely develop the same way it has in the
past. - ANSWER-D. The loss development method
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assumes that future experience will rarely develop the
same way it has in the past.
Which one of the following statements is true regarding
claim department contacts?
Select one:
A. Insurer claim departments perform market conduct
investigations as part of their normal activities.
B. Uniform legislation exists for licensing of insurance
claim adjusters.
C. Consumer complaints are investigated by the state
insurance departments.
D. Attorney representation guarantees a faster claim
settlement. - ANSWER-C. Consumer complaints are
investigated by the state insurance departments.
Which one of the following financial ratios is key for
evaluating insurer solvency?
Select one:
CPCU 520 Exam NEWEST VERSION 2025/ 2026 WITH
COMPLETE QUESTIONS AND SOLUTION 100%
VERIFIED ANSWERS WITH RATIONALES A+ GRADED
FREE||NEWEST EXAM!!!
Workers compensation insurance benefits are established
by statute. If legislation or a court decision changes these
benefits, past losses must be adjusted to
Select one:
A. A state specific percentage of benefits level.
B. Mandatory minimum benefit requirements.
C. Current inflation levels.
D. Current benefit levels. - ANSWER-D. Current benefit
levels.
Every insurer has its own set of unique challenges, which
can hinder the complete alignment of information
technology (IT) and business strategies. Which one of the
following statements best describes how an organization
can overcome one of those challenges?
Select one:
A. Have IT staff guide internal and external customers
through the learning curve and encourage acceptance of
IT initiatives.
,2|Page
B. Tie IT staff's job security to the success with which they
explain and rationalize the development and launch of
new IT projects.
C. Focus primarily on retention and retrofitting of legacy
systems and existing infrastructure rather than updating to
new ones.
D. Ensure that IT personnel see themselves as a separate
unit apart from the insurance part of the organization. -
ANSWER-A. Have IT staff guide internal and external
customers through the learning curve and encourage
acceptance of IT initiatives.
Claims departments use techniques such as network
analysis and clustering to help them
Select one:
A. Acknowledge and assign claims.
B. Resolve claims through alternative dispute resolution.
C. Set fair and adequate reserves.
D. Identify and prevent fraud. - ANSWER-D. Identify and
prevent fraud.
,3|Page
When an insurer is selecting a market segment to target,
which one of the following is an important factor of the
external environment the insurer should consider?
Select one:
A. Distribution channels
B. Technical resources
C. Product mix
D. Laws and regulations - ANSWER-D. Laws and
regulations
Which one of the following is a limitation of the loss
development method of estimating loss reserves?
Select one:
A. Large one-time events such as catastrophes would
disrupt the historical pattern of development.
B. The loss development method only uses one year of
loss experience.
C. The loss development triangle must be built up month
after month.
D. The loss development method assumes that future
experience will rarely develop the same way it has in the
past. - ANSWER-D. The loss development method
, 4|Page
assumes that future experience will rarely develop the
same way it has in the past.
Which one of the following statements is true regarding
claim department contacts?
Select one:
A. Insurer claim departments perform market conduct
investigations as part of their normal activities.
B. Uniform legislation exists for licensing of insurance
claim adjusters.
C. Consumer complaints are investigated by the state
insurance departments.
D. Attorney representation guarantees a faster claim
settlement. - ANSWER-C. Consumer complaints are
investigated by the state insurance departments.
Which one of the following financial ratios is key for
evaluating insurer solvency?
Select one:
