CPCU 553 exam with correct answers

CPCU 553 exam with correct answers |\ |\ |\ |\ |\




T/F: retirement investment portfolio is example of Asset exposed
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to loss - CORRECT ANSWERS ✔✔True
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EX of Real Property - CORRECT ANSWERS ✔✔- Brick storage shed
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- Underground Pipes/flues
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- detached garage
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EX of Personal Property - CORRECT ANSWERS ✔✔- Sport
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equipment
- silverware
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- fishing boat
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- household appliances
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- Motorhome / automobile
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Compensatory Damages - CORRECT ANSWERS ✔✔- Special |\ |\ |\ |\ |\ |\ |\


Damages |\




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Liability Loss - CORRECT ANSWERS ✔✔claim for money damages
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bc of injury to another party or their property
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Slander - CORRECT ANSWERS ✔✔Untrue, Oral statement that
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damages someone's reputation |\ |\

,Assets Exposed to Loss due to Health /Disability loss exposure -
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CORRECT ANSWERS ✔✔- Employment Income |\ |\ |\ |\




- Savings
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- Employer provided benefits
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NOT Social Security Income
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Primary risk to financial Assets for a retiree - CORRECT ANSWERS
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✔✔retirement assets will be insufficient
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Financial Consequences of Loss - CORRECT ANSWERS ✔✔-
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Reduction in Value of property |\ |\ |\ |\




- Increased Expense
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- Lost Income
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General Damages - CORRECT ANSWERS ✔✔compensate victim
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for losses with NO measurable expense such as Pain & Suffering
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Special Damages - CORRECT ANSWERS ✔✔Compensatory
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damages awarding money for specific expenses such as medical
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bills and lost wages
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Tort - CORRECT ANSWERS ✔✔Wrongful act/omission other than
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crime or breach of contract that invades a legally protected right
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,Sources of Tort Liability - CORRECT ANSWERS ✔✔1. Negligence
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2. Intentional Torts
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3. Absolute (strict) Liability
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4 Elements of Negligence - CORRECT ANSWERS ✔✔1. duty to act
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2. breach of that duty
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3. injury/damage occurs
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4. injury/damage is a DIRECT cause of the breach of duty (must
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be unbroken chain of events)
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Libel - CORRECT ANSWERS ✔✔written/printed untrue statement
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Trespass - CORRECT ANSWERS ✔✔Unauthorized possession or
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use of land. |\ |\




Contractual Liability - CORRECT ANSWERS ✔✔Leases for |\ |\ |\ |\ |\ |\


homes/apartments and rental agreements
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Statutory Liabilitiy - CORRECT ANSWERS ✔✔arise from
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statutes/laws. Auto Accidents
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Personal Financial Planing Loss Exposure - CORRECT ANSWERS
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✔✔Life, Health, & Retirement |\ |\ |\




Premature death - CORRECT ANSWERS ✔✔dying before life
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expectancy

, Underemployment - CORRECT ANSWERS ✔✔Reduced work hours |\ |\ |\ |\ |\ |\




Most households choose risk management techniques by: -
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CORRECT ANSWERS ✔✔financial criteria |\ |\ |\




Families should apply 1 risk financing technique and 1 risk
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control technique - CORRECT ANSWERS ✔✔TRUE
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Hedging - CORRECT ANSWERS ✔✔money is paid to offset the risk
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associated with another Asset
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Loss Prevention Measure - CORRECT ANSWERS ✔✔Reduces loss
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Frequency by breaking sequence of events leading to a loss
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Social Security - CORRECT ANSWERS ✔✔Social Insurance to
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mitigate financial uncertainty of retirement loss exposure
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For insured, the primary source of generating scenarios for pre-
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loss analysis is - CORRECT ANSWERS ✔✔Past loss experience
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Pre-loss policy analysis almost exclusively relies on - CORRECT
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ANSWERS ✔✔Scenario analysis |\ |\




DICE - CORRECT ANSWERS ✔✔- Declarations
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- Insuring Agreement
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