CPCU 520: Practice Exam Questions
And Verified Answers Latest Exam
2025/2026
In some states, the courts have ruled that injuries sustained as a result of drive-by shootings are covered
under the victim's personal auto policy. This is an example of a - CORRECT ANSWER- legal hazard
The state advisory organization has developed a new homeowners form which increases the personal
property limits for guns, silverware, jewelry, and boats. Jancy Insurance Company is considering
modifying the form for its own use. Which one of the following members of Jancy's staff would be
involved in the research and development of this new form? - CORRECT ANSWER- corporate
underwriter
An insurer's marketing department is working with the underwriting department to determine what
characteristics of middle market businesses result in the most profitable commercial insurance
accounts. Which one of the following methods would be most effective in identifying these
characteristics? - CORRECT ANSWER- predictive analysis
Corporate underwriters share research of the market responsibilities with actuarial and marketing
departments. Research includes an ongoing evaluation of which one of the following? - CORRECT
ANSWER- optimal product mix in the book of business
Which one of the following best describes how underwriters evaluate personal insurance submissions? -
CORRECT ANSWER- they concentrate on identifying any hazards that may exist
Which one of the following will draft a manuscript policy or endorsement that is worded to address the
specific needs of the insured? - CORRECT ANSWER- corporate underwriter
Patrick had a large homeowners claim pending when his insurer became insolvent and was placed in
receivership. Which one of the following correctly describes how Patrick's claim will be handled if the
insurer is unable to be rehabilitated? - CORRECT ANSWER- Patrick's claim will be covered by the state
guaranty fund
And Verified Answers Latest Exam
2025/2026
In some states, the courts have ruled that injuries sustained as a result of drive-by shootings are covered
under the victim's personal auto policy. This is an example of a - CORRECT ANSWER- legal hazard
The state advisory organization has developed a new homeowners form which increases the personal
property limits for guns, silverware, jewelry, and boats. Jancy Insurance Company is considering
modifying the form for its own use. Which one of the following members of Jancy's staff would be
involved in the research and development of this new form? - CORRECT ANSWER- corporate
underwriter
An insurer's marketing department is working with the underwriting department to determine what
characteristics of middle market businesses result in the most profitable commercial insurance
accounts. Which one of the following methods would be most effective in identifying these
characteristics? - CORRECT ANSWER- predictive analysis
Corporate underwriters share research of the market responsibilities with actuarial and marketing
departments. Research includes an ongoing evaluation of which one of the following? - CORRECT
ANSWER- optimal product mix in the book of business
Which one of the following best describes how underwriters evaluate personal insurance submissions? -
CORRECT ANSWER- they concentrate on identifying any hazards that may exist
Which one of the following will draft a manuscript policy or endorsement that is worded to address the
specific needs of the insured? - CORRECT ANSWER- corporate underwriter
Patrick had a large homeowners claim pending when his insurer became insolvent and was placed in
receivership. Which one of the following correctly describes how Patrick's claim will be handled if the
insurer is unable to be rehabilitated? - CORRECT ANSWER- Patrick's claim will be covered by the state
guaranty fund
