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CPCU 500 Exam 1 with Questions and Solutions

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CPCU 500 Exam 1 with Questions and Solutions Many laws and regulations require organizations to implement specific risk control measures. Which one of the following statements is true in this regard? Select one: A. These measures are a means of implementing the risk control techniques of separation, duplication, and diversification. B. The cost of adhering to these legal requirements becomes part of the cost of risk. C. These laws and regulations are amended infrequently and do not require ongoing monitoring. D. Failure to comply with legal requirements can expose an organization to sanction, but not to liability. ANSWER B. The cost of adhering to these legal requirements becomes part of the cost of risk. Restricting the number of key employees who can travel on the same aircraft is an example of which one of the following risk control techniques? Select one: A. Loss reduction B. Duplication C. Separation D. Diversification ANSWER C. Separation

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