AICM Certified Construction Risk and Insurance
CCRIP Exam
**Question 1.** Which of the following best describes a pure risk in construction?
A) Potential profit from a new market
B) Damage to a building caused by a fire
C) Savings from using a more efficient material
D) Increased productivity through new technology
Answer: B
Explanation: Pure risks involve only the possibility of loss or no loss; they are not associated
with gain. A fire causing damage is a classic pure risk.
**Question 2.** In a Work Breakdown Structure (WBS), the primary purpose of the lowest‑level
elements is to:
A) Define contract deliverables
B) Identify high‑level project phases
C) Facilitate risk identification at detailed levels
D) Assign senior management responsibilities
Answer: C
Explanation: The lowest‑level WBS elements (work packages) allow granular identification and
analysis of risks associated with specific tasks.
**Question 3.** The Delphi technique is most useful for:
A) Real‑time hazard observation on site
B) Gathering expert consensus on uncertain risk probabilities
C) Performing quantitative cost‑benefit analysis
D) Documenting statutory insurance requirements
Answer: B
,AICM Certified Construction Risk and Insurance
CCRIP Exam
Explanation: The Delphi method uses iterative questionnaires to achieve expert consensus, ideal
for estimating probabilities of uncertain risks.
**Question 4.** Which risk category includes “design errors” and “unexpected subsurface
conditions”?
A) Technical risks
B) Organizational risks
C) External risks
D) Financial risks
Answer: A
Explanation: Technical risks relate directly to the engineering and physical aspects of the
project, such as design flaws and site conditions.
**Question 5.** An example of an external risk is:
A) Inadequate crew training
B.1) A change in local building code during construction
C) Faulty concrete mix design
D) Delay in equipment delivery caused by contractor’s procurement error
Answer: B
Explanation: External risks arise from forces outside the project’s direct control, such as
regulatory changes.
**Question 6.** The purpose of a risk register is to:
A) List all subcontractors and their insurance certificates
B) Document identified risks, their analysis, and mitigation actions throughout the project
lifecycle
C) Record daily labor hours for payroll purposes
,AICM Certified Construction Risk and Insurance
CCRIP Exam
D) Provide a schedule of material deliveries
Answer: B
Explanation: A risk register is a living document that tracks risk identification, assessment,
response planning, and status.
**Question 7.** In qualitative risk analysis, a risk matrix typically plots:
A) Probability on the X‑axis and Impact on the Y‑axis
B) Cost on the X‑axis and Schedule on the Y‑axis
C) Severity on the X‑axis and Frequency on the Y‑axis
D) Both A and C are acceptable conventions
Answer: D
Explanation: Qualitative matrices may use probability vs. impact or severity vs. frequency; both
convey risk magnitude.
**Question 8.** Which of the following is a quantitative risk analysis technique?
A) Expert judgment scoring
B) Monte Carlo simulation of project cost
C) SWOT analysis
D) Risk register checklist review
Answer: B
Explanation: Monte Carlo simulation uses probability distributions to quantify potential cost or
schedule outcomes.
**Question 9.** Commercial General Liability (CGL) “Your Work” exclusion typically removes
coverage for:
A) Bodily injury to a third party on the construction site
, AICM Certified Construction Risk and Insurance
CCRIP Exam
B) Property damage caused by the contractor’s work on the insured’s premises
C) Advertising injury claim
D) Damage to the contractor’s own equipment
Answer: B
Explanation: The “Your Work” exclusion eliminates CGL coverage for damages arising from the
insured’s own construction work, requiring separate Builders Risk coverage.
**Question 10.** In a CGL policy, the trigger “occurrence” means:
A) Coverage attaches when the claim is filed
B) Coverage attaches when the insured files a lawsuit
C) Coverage attaches when the damaging event happens, regardless of when the claim is
reported
D) Coverage attaches only after a ten‑day notice period
Answer: C
Explanation: An occurrence trigger provides coverage for events that happen during the policy
period, even if the claim is reported later.
**Question 11.** Which part of a Builders Risk policy typically covers “soft costs” such as loss of
rent?
A) Property coverage A
B) Property coverage B
C) Additional coverage endorsement
D) Exclusion clause
Answer: C
Explanation: Soft‑cost endorsements add coverage for loss of income, financing costs, and other
indirect expenses due to construction delays.
CCRIP Exam
**Question 1.** Which of the following best describes a pure risk in construction?
A) Potential profit from a new market
B) Damage to a building caused by a fire
C) Savings from using a more efficient material
D) Increased productivity through new technology
Answer: B
Explanation: Pure risks involve only the possibility of loss or no loss; they are not associated
with gain. A fire causing damage is a classic pure risk.
**Question 2.** In a Work Breakdown Structure (WBS), the primary purpose of the lowest‑level
elements is to:
A) Define contract deliverables
B) Identify high‑level project phases
C) Facilitate risk identification at detailed levels
D) Assign senior management responsibilities
Answer: C
Explanation: The lowest‑level WBS elements (work packages) allow granular identification and
analysis of risks associated with specific tasks.
**Question 3.** The Delphi technique is most useful for:
A) Real‑time hazard observation on site
B) Gathering expert consensus on uncertain risk probabilities
C) Performing quantitative cost‑benefit analysis
D) Documenting statutory insurance requirements
Answer: B
,AICM Certified Construction Risk and Insurance
CCRIP Exam
Explanation: The Delphi method uses iterative questionnaires to achieve expert consensus, ideal
for estimating probabilities of uncertain risks.
**Question 4.** Which risk category includes “design errors” and “unexpected subsurface
conditions”?
A) Technical risks
B) Organizational risks
C) External risks
D) Financial risks
Answer: A
Explanation: Technical risks relate directly to the engineering and physical aspects of the
project, such as design flaws and site conditions.
**Question 5.** An example of an external risk is:
A) Inadequate crew training
B.1) A change in local building code during construction
C) Faulty concrete mix design
D) Delay in equipment delivery caused by contractor’s procurement error
Answer: B
Explanation: External risks arise from forces outside the project’s direct control, such as
regulatory changes.
**Question 6.** The purpose of a risk register is to:
A) List all subcontractors and their insurance certificates
B) Document identified risks, their analysis, and mitigation actions throughout the project
lifecycle
C) Record daily labor hours for payroll purposes
,AICM Certified Construction Risk and Insurance
CCRIP Exam
D) Provide a schedule of material deliveries
Answer: B
Explanation: A risk register is a living document that tracks risk identification, assessment,
response planning, and status.
**Question 7.** In qualitative risk analysis, a risk matrix typically plots:
A) Probability on the X‑axis and Impact on the Y‑axis
B) Cost on the X‑axis and Schedule on the Y‑axis
C) Severity on the X‑axis and Frequency on the Y‑axis
D) Both A and C are acceptable conventions
Answer: D
Explanation: Qualitative matrices may use probability vs. impact or severity vs. frequency; both
convey risk magnitude.
**Question 8.** Which of the following is a quantitative risk analysis technique?
A) Expert judgment scoring
B) Monte Carlo simulation of project cost
C) SWOT analysis
D) Risk register checklist review
Answer: B
Explanation: Monte Carlo simulation uses probability distributions to quantify potential cost or
schedule outcomes.
**Question 9.** Commercial General Liability (CGL) “Your Work” exclusion typically removes
coverage for:
A) Bodily injury to a third party on the construction site
, AICM Certified Construction Risk and Insurance
CCRIP Exam
B) Property damage caused by the contractor’s work on the insured’s premises
C) Advertising injury claim
D) Damage to the contractor’s own equipment
Answer: B
Explanation: The “Your Work” exclusion eliminates CGL coverage for damages arising from the
insured’s own construction work, requiring separate Builders Risk coverage.
**Question 10.** In a CGL policy, the trigger “occurrence” means:
A) Coverage attaches when the claim is filed
B) Coverage attaches when the insured files a lawsuit
C) Coverage attaches when the damaging event happens, regardless of when the claim is
reported
D) Coverage attaches only after a ten‑day notice period
Answer: C
Explanation: An occurrence trigger provides coverage for events that happen during the policy
period, even if the claim is reported later.
**Question 11.** Which part of a Builders Risk policy typically covers “soft costs” such as loss of
rent?
A) Property coverage A
B) Property coverage B
C) Additional coverage endorsement
D) Exclusion clause
Answer: C
Explanation: Soft‑cost endorsements add coverage for loss of income, financing costs, and other
indirect expenses due to construction delays.
