CPCU 500
CPCU 500 PRACTICE EXAM 1 QUESTIONS
AND CORRECT DETAILED ANSWERS
LATEST UPLOAD
1. 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. - ANS ✔ - D. Computer vision.
2. 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. - ANS
✔ - D. The definition of risk has evolved to include positive as well as negative attributes.
3. 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. - ANS ✔ - C. Negative.
4. 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
1|Page
CPCU 500
©®
CPCU 500 PRACTICE EXAM 1 QUESTIONS
AND CORRECT DETAILED ANSWERS
LATEST UPLOAD
1. 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. - ANS ✔ - D. Computer vision.
2. 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. - ANS
✔ - D. The definition of risk has evolved to include positive as well as negative attributes.
3. 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. - ANS ✔ - C. Negative.
4. 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
1|Page
CPCU 500
©®
