CPCU 500 Exam Questions and Answers 100% Verified

CPCU 500 Exam Questions and Answers 100%
Verified

Question:

Economy of Operations


Answer:

increase departmental and organizational efficiency, pre-loss risk mgmt goal



Question:

Toerable uncertainty


Answer:

provide an awareness of potential losses and an assurance of their effective management

keeping the worry of accidental loss at a tolerable level (pre-loss risk mgmt goal)



Question:

Survival


Answer:

resume operations eventually (post loss risk mgmt goal)



Question:

Continuity of operations


Answer:

resume operations quickly (post loss risk mgmt goal)

,Question:

Profitability


Answer:

maintain at least a minimum profit level NO MATTER WHAT accident occurs. Post loss risk

mgmt goals



Question:

Earnings stability


Answer:

maintain a specified earnings level from year to year post loss rm goal



Question:

Minimize the effects of loss on society for moral and good public reasons


Answer:

social responsibility



Question:

maintain the pre-loss growth pattern


Answer:

growth post loss rm goal

, Question:

6 STEPS OF THE RM PROCESS


Answer:

1) IDENTIFY EXPOSURES 2) ANALYZE (MEASURE) LOSS EXPOSURES 3) EVALUATE

ALTERNATIVE RM EXPOSURE TREATMENT TECHNIQUES 4) SELECT THE BEST

COMBINATION OF RM TECHNIQUES 5) IMPLEMENT DECISION 6) MONITOR THE

PROGRAM



Question:

4 methods of loss exposure identification


Answer:

1) Document analysis 2) Compliance review 3) Personal inspections 4) Experts



Question:

Hazard analysis


Answer:

under the experts method of loss exposures identification, reveals potential losses by IDing

conditions that increase expected loss frequency and/or severity



Question:

Probability


Answer:

measures the expected frequency of an event over time in a stable environment