CPCU 500 Exam Questions and Answers Grade A+
Which one of the following statements about the use of drones is true?
A. The reliance on humans to operate drones severely limits their application for commercial
uses.
B. Drones may be equipped with cameras that relay data in real-time.
C. The use of drones is limited to military applications.
D. Space and weight limitations prevent drones from being equipped with sensors and cameras.
- Answer-B. Drones may be equipped with cameras that relay data in real-time.
The science of designing work spaces based on the health concerns of those who will operate in
the work space is called: - Answer-Ergonomics
Last year, three Metro City firemen died responding to a fire at a chemical plant, when they
were overcome by toxic fumes. In response, Metro City is purchasing advanced first responder
gear. It includes special flame retardant suits with chemical and explosive fume sensors, air
quality sensors, and heat sensors. Responders will also wear special watches that will track a
responder's pulse, respiration, and blood pressure; and helmets that include video cameras. All
of these sensors will feed data to a computer in real-time. The computer will analyze the data
and issue threat levels and evacuation orders, if necessary.
The protective gear Metro City will purchase and the data transmission and analysis capability
illustrate the use of: - Answer-Smart products
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: - Answer-Computer vision
Which one of the following is a positive risk for a start-up business?
,A. Inability to obtain raw materials
B. Distribution inefficiencies
C. Attracting investor interest
D. Fire damaging the production facility - Answer-C. Attracting investor interest
Risk managers today differ from traditional risk managers in which one of the following ways?
A. They attempt to minimize threats and optimize opportunities.
B. They generally look backward for risk factors.
C. They attempt to identify a loss's predominant cause.
D. They struggle with data that is too large to capture, store, and analyze. - Answer-A. They
attempt to minimize threats and optimize opportunities.
Catastrophes such as recent earthquakes and the 2011 tsunami in Japan pointed out a need for
many organizations to evaluate and manage their: - Answer-Supply-chain risk
Risks from accidental loss, including the possibility of loss or no loss: - Answer-hazard risk
Which one of the following uses infrared light to detect nearby objects?
A. Robots
B. Wearables
C. Lidar
D. Drones - Answer-C. Lidar
AMRM Insurance Company sells insurance in Virginia, North Carolina, South Carolina, and
Georgia. The company has compiled a policyowner data base that can be used to send text
messages when hurricanes approach. The company provides early warnings, storm updates
from the National Weather Service, and hurricane safety measures. The company credits the
system with reduced hurricane claims.
The use of the texting system is an example of: - Answer-Preventive analytics.
, Which one of the following is an example of a wearable?
A. Unmanned aircraft
B. Heart monitors
C. Helmets that monitor fatigue
D. Robots - Answer-C. Helmets that monitor fatigue
Which one of the following statements is true with regard to preventive analytics?
A. Preventive analytics is backward-looking, basing corrective prescriptions on the organization's
past loss history.
B. Preventive analytics uses smart products and data analytics to identify root loss causes and
their implications.
C. Preventive analytics involves data collection at discrete points in time, such as 10 AM or 4 PM
each day, and comparison of these values at discrete points in time.
D. Preventative analytics uses human assets to analyze data collected by smart products. -
Answer-B. Preventive analytics uses smart products and data analytics to identify root loss
causes and their implications.
Don is the Risk Manager for Rafferty Corporation. One of his peers, Sally, asks him one day,
"How do you define risk?" When Don replies, which one of the following statements is
accurate?
A. Risk has so many definitions that it has become an almost meaningless term.
B. Risk has consistent meanings within the insurance and risk management communities.
C. Risk can also be used to refer to the insurance provider (the insurer).
Which one of the following statements about the use of drones is true?
A. The reliance on humans to operate drones severely limits their application for commercial
uses.
B. Drones may be equipped with cameras that relay data in real-time.
C. The use of drones is limited to military applications.
D. Space and weight limitations prevent drones from being equipped with sensors and cameras.
- Answer-B. Drones may be equipped with cameras that relay data in real-time.
The science of designing work spaces based on the health concerns of those who will operate in
the work space is called: - Answer-Ergonomics
Last year, three Metro City firemen died responding to a fire at a chemical plant, when they
were overcome by toxic fumes. In response, Metro City is purchasing advanced first responder
gear. It includes special flame retardant suits with chemical and explosive fume sensors, air
quality sensors, and heat sensors. Responders will also wear special watches that will track a
responder's pulse, respiration, and blood pressure; and helmets that include video cameras. All
of these sensors will feed data to a computer in real-time. The computer will analyze the data
and issue threat levels and evacuation orders, if necessary.
The protective gear Metro City will purchase and the data transmission and analysis capability
illustrate the use of: - Answer-Smart products
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: - Answer-Computer vision
Which one of the following is a positive risk for a start-up business?
,A. Inability to obtain raw materials
B. Distribution inefficiencies
C. Attracting investor interest
D. Fire damaging the production facility - Answer-C. Attracting investor interest
Risk managers today differ from traditional risk managers in which one of the following ways?
A. They attempt to minimize threats and optimize opportunities.
B. They generally look backward for risk factors.
C. They attempt to identify a loss's predominant cause.
D. They struggle with data that is too large to capture, store, and analyze. - Answer-A. They
attempt to minimize threats and optimize opportunities.
Catastrophes such as recent earthquakes and the 2011 tsunami in Japan pointed out a need for
many organizations to evaluate and manage their: - Answer-Supply-chain risk
Risks from accidental loss, including the possibility of loss or no loss: - Answer-hazard risk
Which one of the following uses infrared light to detect nearby objects?
A. Robots
B. Wearables
C. Lidar
D. Drones - Answer-C. Lidar
AMRM Insurance Company sells insurance in Virginia, North Carolina, South Carolina, and
Georgia. The company has compiled a policyowner data base that can be used to send text
messages when hurricanes approach. The company provides early warnings, storm updates
from the National Weather Service, and hurricane safety measures. The company credits the
system with reduced hurricane claims.
The use of the texting system is an example of: - Answer-Preventive analytics.
, Which one of the following is an example of a wearable?
A. Unmanned aircraft
B. Heart monitors
C. Helmets that monitor fatigue
D. Robots - Answer-C. Helmets that monitor fatigue
Which one of the following statements is true with regard to preventive analytics?
A. Preventive analytics is backward-looking, basing corrective prescriptions on the organization's
past loss history.
B. Preventive analytics uses smart products and data analytics to identify root loss causes and
their implications.
C. Preventive analytics involves data collection at discrete points in time, such as 10 AM or 4 PM
each day, and comparison of these values at discrete points in time.
D. Preventative analytics uses human assets to analyze data collected by smart products. -
Answer-B. Preventive analytics uses smart products and data analytics to identify root loss
causes and their implications.
Don is the Risk Manager for Rafferty Corporation. One of his peers, Sally, asks him one day,
"How do you define risk?" When Don replies, which one of the following statements is
accurate?
A. Risk has so many definitions that it has become an almost meaningless term.
B. Risk has consistent meanings within the insurance and risk management communities.
C. Risk can also be used to refer to the insurance provider (the insurer).
