ARM 402 FINAL EXAM AND PRACTICE
EXAM QUESTIONS 2026 BANK CURRENTLY
TESTING COMPLETE ACTUAL EXAM
QUESTIONS WITH DETAILED VERIFIED
ANSWERS EXPERTLY VERIFIED
/ALREADY GRADED A+//BRAND NEW!!
Punitive damages are intended to
A) Compensate the defendant for medical expenses
B) Punish the defendant
C) Punish the plaintiff
D) Compensate the injured party for pain and suffering -
....ANSWER...B
An organization wants to create a trademark for its line of
products. Which one of the following risk control measures
for trademarks should the organization use to avoid the
possibility of infringing on someone else's trademark?
A) Notice
B) Restrictive covenants
1
,C) Searches and watches
D) Registration - ....ANSWER...C
Intellectual property is protected through
A) Laches
B) Tort
C) Contract
D) Statutes - ....ANSWER...D
2
,A primary loss prevention measure for contractual liability
is to have most contracts
A) Meet American Bar Association guidelines
B) Be oral rather than written
C) Reviewed by counsel before they are signed
D) Reviewed by management before they are signed -
....ANSWER...C
A state wants to build a road through an environmentally-
sensitive area. The area includes endangered flora and
fauna, as well as wetlands. Build-Rite Construction
expressed interest in the project, but is concerned about
potential liability. Build-Rite agrees to build the road if
the state assumes all responsibility for any liability arising
out of the construction of the road. A state representative
has signed-off on the contract, agreeing that the state will
be responsible for all liability. This transfer of
responsibility for fault illustrates which one of the
following forms of noninsurance risk financing transfer?
A) Broad form
3
, B) Intermediate form
C) Nullification form
D) Limited form - ....ANSWER...A
Regarding options, the strike price is the
A) Specific price at which the holder of an option can
buy or sell the asset associated with the option
B) Agreement that gives the holder the right to sell an
asset a specific price over a period of time
C) Price at which the holder of an option will profit
D) Price at which the seller of the assets will make a profit
- ....ANSWER...A
A release of liability agreement for activities specified in
the contract is
A) An exculpatory agreement
B) A hold harmless agreement
C) A duty
D) A waiver - ....ANSWER...A
4
EXAM QUESTIONS 2026 BANK CURRENTLY
TESTING COMPLETE ACTUAL EXAM
QUESTIONS WITH DETAILED VERIFIED
ANSWERS EXPERTLY VERIFIED
/ALREADY GRADED A+//BRAND NEW!!
Punitive damages are intended to
A) Compensate the defendant for medical expenses
B) Punish the defendant
C) Punish the plaintiff
D) Compensate the injured party for pain and suffering -
....ANSWER...B
An organization wants to create a trademark for its line of
products. Which one of the following risk control measures
for trademarks should the organization use to avoid the
possibility of infringing on someone else's trademark?
A) Notice
B) Restrictive covenants
1
,C) Searches and watches
D) Registration - ....ANSWER...C
Intellectual property is protected through
A) Laches
B) Tort
C) Contract
D) Statutes - ....ANSWER...D
2
,A primary loss prevention measure for contractual liability
is to have most contracts
A) Meet American Bar Association guidelines
B) Be oral rather than written
C) Reviewed by counsel before they are signed
D) Reviewed by management before they are signed -
....ANSWER...C
A state wants to build a road through an environmentally-
sensitive area. The area includes endangered flora and
fauna, as well as wetlands. Build-Rite Construction
expressed interest in the project, but is concerned about
potential liability. Build-Rite agrees to build the road if
the state assumes all responsibility for any liability arising
out of the construction of the road. A state representative
has signed-off on the contract, agreeing that the state will
be responsible for all liability. This transfer of
responsibility for fault illustrates which one of the
following forms of noninsurance risk financing transfer?
A) Broad form
3
, B) Intermediate form
C) Nullification form
D) Limited form - ....ANSWER...A
Regarding options, the strike price is the
A) Specific price at which the holder of an option can
buy or sell the asset associated with the option
B) Agreement that gives the holder the right to sell an
asset a specific price over a period of time
C) Price at which the holder of an option will profit
D) Price at which the seller of the assets will make a profit
- ....ANSWER...A
A release of liability agreement for activities specified in
the contract is
A) An exculpatory agreement
B) A hold harmless agreement
C) A duty
D) A waiver - ....ANSWER...A
4
