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CPCU 551 Questions and Correct Answers
Internet of Things (loT) Ans: A network of objects that transmit
data to computers.
Net income Ans: The difference between revenues (such as money
received for goods or services) and expenses (such as money paid
for merchandise, rent, and insurance).
Business income worksheet Ans: A worksheet for calculating the
amount of insurance necessary to comply with the Coinsurance
condition of business income insurance forms, for reporting
business income values to the insurer, or for providing
underwriters with information they need to evaluate an
organization's business income loss exposure.
Business income insurance Ans: Insurance that covers the
reduction in an organization's income when operations are
interrupted by damage to property caused by a covered peril.
Business interruption Ans: Loss of revenue that a business or
another organization sustains because its operations are
suspended as a result of physical injury to its property.
Profit Ans: Net income that results when revenues exceed
expenses.
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Net loss Ans: Net income that results when expenses exceed
revenues.
Continuing expenses Ans: Expenses that continue to be incurred
during a business interruption
Noncontinuing expenses Ans: Expenses that will not continue
during a business interruption.
Extra expenses Ans: Expenses, in addition to ordinary expenses,
that an organization incurs to mitigate the effects of a business
interruption.
Shipper Ans: The person or organization shipping goods, often
the seller of the goods.
Consignee Ans: The person or organization that receives property
being transported by a carrier.
Common carriers Ans: Airlines, railroads, or trucking companies
that furnish transportation to any member of the public seeking
their offered services.
Contract carriers Ans: Carriers that furnish transportation
services to shippers with whom they have contracts.
© 2025 All rights reserved
CPCU 551 Questions and Correct Answers
Internet of Things (loT) Ans: A network of objects that transmit
data to computers.
Net income Ans: The difference between revenues (such as money
received for goods or services) and expenses (such as money paid
for merchandise, rent, and insurance).
Business income worksheet Ans: A worksheet for calculating the
amount of insurance necessary to comply with the Coinsurance
condition of business income insurance forms, for reporting
business income values to the insurer, or for providing
underwriters with information they need to evaluate an
organization's business income loss exposure.
Business income insurance Ans: Insurance that covers the
reduction in an organization's income when operations are
interrupted by damage to property caused by a covered peril.
Business interruption Ans: Loss of revenue that a business or
another organization sustains because its operations are
suspended as a result of physical injury to its property.
Profit Ans: Net income that results when revenues exceed
expenses.
© 2025 All rights reserved
, 2 | Page
Net loss Ans: Net income that results when expenses exceed
revenues.
Continuing expenses Ans: Expenses that continue to be incurred
during a business interruption
Noncontinuing expenses Ans: Expenses that will not continue
during a business interruption.
Extra expenses Ans: Expenses, in addition to ordinary expenses,
that an organization incurs to mitigate the effects of a business
interruption.
Shipper Ans: The person or organization shipping goods, often
the seller of the goods.
Consignee Ans: The person or organization that receives property
being transported by a carrier.
Common carriers Ans: Airlines, railroads, or trucking companies
that furnish transportation to any member of the public seeking
their offered services.
Contract carriers Ans: Carriers that furnish transportation
services to shippers with whom they have contracts.
© 2025 All rights reserved
