CPCU 500 Exam & Practice Exam
CPCU 500 Exam 1 & Practice Exam
Questions and Answers Practice
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A source of a rapidly growing quantity of external data is
Select one:
A. Industry loss data.
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CPCU 500 Exam & Practice Exam
B. Risk management and insurance professionals.
C. Computers.
D. The Internet of Things. –
Correct Answer :D. The Internet of Things.
A predictive approach to data analytics involves
Select one:
A. Providing a computer program to gather information from the Internet.
B. Providing a method to be used repeatedly to provide information.
C. Providing information to solve a particular problem.
D. Providing sensors that predict accidents. –
Correct Answer :B. Providing a method to be used repeatedly to provide information.
For insurers to utilize pooling most effectively and present catastrophic losses, the insured
exposure units need to be
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CPCU 500 Exam & Practice Exam
Select one:
A. Independent.
B. Adjacent.
C. Different.
D. Correlated. –
Correct Answer :A. Independent.
Commercial general liability insurance policies written on an occurrence basis apply to bodily
injury and property damage that occurs during the policy period. This provision supports the
principle that insurable loss exposures must ideally be
Select one:
A. Fortuitous.
B. Pure risks.
C. Independent.
D. Definite. –
Correct Answer :D. Definite.
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CPCU 500 Exam & Practice Exam
Ideally insurable loss exposures are subject to losses that
Select one:
A. Are definite in time, cause, and location.
B. Result from unidentifiable causes.
C. Occur gradually over long periods of time.
D. Are immeasurable in terms of frequency or severity. –
Correct Answer :A. Are definite in time, cause, and location.
Which one of the following is an example of a fortuitous loss?
Select one:
A. An unknown vandal spray-paints graffiti on the insured's garage.
B. An insured demolishes a deck that has been allowed to rot.
C. The value of an insured's home decreases due to a lack of maintenance.
D. Insureds intentionally set a fire and burn their house down. –
Correct Answer :A. An unknown vandal spray-paints graffiti on the insured's garage.