CPCU 500 Practice Exam 1 Study Questions 2024

Autonomous Vehicle Applications (AVA) is a start-up company that develops safety technologies that can be sold to companies that are producing autonomous vehicles. One technology AVA is developing allows an autonomous vehicle to detect, extract, and analyze images; and then to respond to the images. For example, the technology would detect a presence in a crosswalk, extract the image, and a computer would analyze the image. When the image was determined to be a human being, the vehicle would slow down or stop until the crosswalk was clear. This technology, which is designed to capture and analyze images, and to act on the recognition of the image; is called Select one: A. Accelerometer technology. B. Transducer technology. C. Visual acuity. D. Computer vision. - D. Computer vision. Which one of the following statements is true regarding the evolution of risk and risk management? Select one: A. The definitions of risk and risk management have become considerably more focused over the years. B. Risk management now involves only those areas where the organization has some degree of control over the outcome. C. Risk management is increasingly being applied to the risks associated with accidental losses. D. The definition of risk has evolved to include positive as well as negative attributes. - D. The definition of risk has evolved to include positive as well as negative attributes. The traditional definition of risk management reflects the traditional concept of risk as Select one: A. Both positive and negative. B. Strategic. C. Negative. D. Uncontrollable. - C. Negative. In an effort to reduce expenses, increase profitability, and reduce human errors; ABC Insurance Company decided to automate most of its personal lines underwriting function. The company now uses standardized application forms that are submitted electronically to one of the company's regional offices. At each regional office, a computer with a scanner reads the applications. The computer has been programmed with acceptable answers to the questions. If the answers on the application are all acceptable, the policy is automatically issued. Rejected applications are automatically forwarded to a human underwriter who reviews them. The use of this technology has reduced the company's expense ratio by two and a half percent, and reduced the time it takes to issue a policy. ABC Insurance Company's use of computers to evaluate applications electronically is an application of Select one: A. Actuator technology. B. Artificial i - B. Artificial intelligence. Take Your Order (TYO) is a company that specializes in taking product orders for vendors. The manufacturer of a product can run a television or internet ad for a product with a toll-free number. Customer calls for the products are routed to TYO, where one hundred operators are available to receive the calls. Each operator is assigned a cubicle with a computer terminal, video display monitor, and a telephone. TYO experienced high workers compensation claims from its operators, claiming neck strain, eye strain, and wrist pain. In an effort to reduce such injuries, TYO evaluated each operator's work area. The height of chairs and video monitors were adjusted, curved computer keyboards and wrist-rests were provided, and the telephones were replaced with audio headsets. Workers compensation costs dropped significantly. The science of designing work spaces based on interaction between people and the equipment in the work s - A. Ergonomics.. Which one of the following best explains how most smart products potentially improve risk management? Select one: A. They generate big data to which advanced analytics can be applied. B. They measure worker fatigue. C. They assess risks in dangerous areas. D. They scan and inspect structures for unsafe conditions. - A. They generate big data to which advanced analytics can be applied. Which one of the following data capture tools has led to an explosion of risk management innovation by allowing smart products to transmit data to each other and to central hubs? Select one: A. Internet of Things B. Blockchain C. Artificial intelligence D. Cloud computing - A. Internet of Things