CPCU 500 Exam with Questions and Verified Answers

CPCU 500 Exam with Questions and Verified Answers Leasing is a useful noninsurance risk control transfer because: A. The lessee retains the loss exposures resulting from property destruction. B. The lessee stands to lose the property's rental income in the event of damage to the property. C. Certain loss exposures accompany property ownership but do not accompany its use or occupancy. D. The lessor loses the ability to use the property for the remainder of the lease in the event of damage to the property. ANSWER C. Certain loss exposures accompany property ownership but do not accompany its use or occupancy. Which one of the following is true about the liability involved in contracting services? A. In contracting for services, the party that transfers the risk must be an independent contractor, and the party that accepts the risk must be a subcontractor. B. The responsibility that certain duties be performed safely cannot be delegated to another party, such as the duty of common carriers to carry passengers safely. C. If the party that hired the contractor is negligent in selecting the contractor, the contractor is directly liable for such negligence. D. If the subcontracted work is inherently dangerous to others, the party who hired the contractor is not liable for an injury to a third party caused by the contractor's negligence. ANSWER B. The responsibility that certain duties be performed safely cannot be delegated to another party, such as the duty of common carriers to carry passengers safely.