CPCU 551 TEST PAPER COLLECTION 2026
ACCURATE ANSWERS ALREADY PASSED
⩥Net income. Answer: 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. Answer: 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. Answer: 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. Answer: 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. Answer: Net income that results when revenues exceed
expenses.
, ⩥Net loss. Answer: Net income that results when expenses exceed
revenues.
⩥Continuing expenses. Answer: Expenses that continue to be incurred
during a business interruption.
⩥Noncontinuing expenses. Answer: Expenses that will not continue
during a business interruption.
⩥Extra expenses. Answer: Expenses, in addition to ordinary expenses,
that an organization incurs to mitigate the effects of a business
interruption.
⩥Shipper. Answer: The person or organization shipping goods, often the
seller of the goods.
⩥Consignee. Answer: The person or organization that receives property
being transported by a carrier.
⩥Common carriers. Answer: Airlines, railroads, or trucking companies
that furnish transportation to any member of the public seeking their
offered services.
⩥Contract carriers. Answer: Carriers that furnish transportation services
to shippers with whom they have contracts.
ACCURATE ANSWERS ALREADY PASSED
⩥Net income. Answer: 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. Answer: 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. Answer: 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. Answer: 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. Answer: Net income that results when revenues exceed
expenses.
, ⩥Net loss. Answer: Net income that results when expenses exceed
revenues.
⩥Continuing expenses. Answer: Expenses that continue to be incurred
during a business interruption.
⩥Noncontinuing expenses. Answer: Expenses that will not continue
during a business interruption.
⩥Extra expenses. Answer: Expenses, in addition to ordinary expenses,
that an organization incurs to mitigate the effects of a business
interruption.
⩥Shipper. Answer: The person or organization shipping goods, often the
seller of the goods.
⩥Consignee. Answer: The person or organization that receives property
being transported by a carrier.
⩥Common carriers. Answer: Airlines, railroads, or trucking companies
that furnish transportation to any member of the public seeking their
offered services.
⩥Contract carriers. Answer: Carriers that furnish transportation services
to shippers with whom they have contracts.
