CPCU 500 LATEST EXAMS STUDY GUIDE
QUESTIONS AND ANSWERS SURE A+
✔✔Types of Transfer - ✔✔1. Insurance
2. Alternative risk transfer (ART)
✔✔Advantages of transfer - ✔✔1. Reduces the financial uncertainty of losses
2. Reduces variability in cash flows
3. Provides ancillary Services
4. Avoids adverse employee and public relations
✔✔Factors when choosing a risk financing measure - ✔✔1. Compatibility with risk
financing goals
2. Loss exposure characteristics
3. Organization specific characteristics
✔✔Risk Financing Measures - ✔✔1. Guaranteed cost insurance
2. Self Insurance
3. Large Deductible Plan
4. Captive Insurer
5. Finite Risk Insurance Plan
6. Pool
7. Retrospective Rating Plan
, 8. Hold Harmless Agreement
9. Capital market Solutions
✔✔Special Types of Group Captives - ✔✔1. Risk Retention Group (RRG)
2. Rent a captive
3. Protected Cell Company (PCC)
✔✔Risk Control Techniques - ✔✔1. Avoidance
2. Loss Prevention
3. Loss Reduction
4. Separation
5. Duplication
6. Diversification
✔✔Risk Control Goals - ✔✔1. Implement Effective and Efficient Risk Control Measures
2. Comply With Legal Requirements
3. Promote Life Safety
4. Ensure Business Continuity
✔✔Steps in the Business Continuity Process - ✔✔1. Identify the organizations critical
processes
2. Identify the threats to those processes
3. Analyze the effects of the threats on those processes
4. Create a business continuity strategy
5. Create a business continuity plan
6. Monitor and revise the business continuity process
✔✔Guidelines for designing effective business continuity plan - ✔✔1. Design a plan that
is clear and capable of being easily read and understood during a crisis
2. Distribute copies of the plan to all relevant parties
3. Train all relevant parties in crisis procedures
✔✔Most business continuity plans contain - ✔✔1. The strategy to follow during a crisis
2. Information about individuals' roles and duties during a crisis
3. Steps for preventing further loss and / or damage
4. An emergency response plan that addresses life and safety issues
5. A crisis management plan for addressing communication and reputation issues
6. A business recovery and restoration plan for losses to property, processes and
products
7. Access to stress management and counseling
✔✔Methods of Loss Exposure Identification - ✔✔1. Document Analysis
2. Compliance Review
3. Personal Inspections
4. Experts
QUESTIONS AND ANSWERS SURE A+
✔✔Types of Transfer - ✔✔1. Insurance
2. Alternative risk transfer (ART)
✔✔Advantages of transfer - ✔✔1. Reduces the financial uncertainty of losses
2. Reduces variability in cash flows
3. Provides ancillary Services
4. Avoids adverse employee and public relations
✔✔Factors when choosing a risk financing measure - ✔✔1. Compatibility with risk
financing goals
2. Loss exposure characteristics
3. Organization specific characteristics
✔✔Risk Financing Measures - ✔✔1. Guaranteed cost insurance
2. Self Insurance
3. Large Deductible Plan
4. Captive Insurer
5. Finite Risk Insurance Plan
6. Pool
7. Retrospective Rating Plan
, 8. Hold Harmless Agreement
9. Capital market Solutions
✔✔Special Types of Group Captives - ✔✔1. Risk Retention Group (RRG)
2. Rent a captive
3. Protected Cell Company (PCC)
✔✔Risk Control Techniques - ✔✔1. Avoidance
2. Loss Prevention
3. Loss Reduction
4. Separation
5. Duplication
6. Diversification
✔✔Risk Control Goals - ✔✔1. Implement Effective and Efficient Risk Control Measures
2. Comply With Legal Requirements
3. Promote Life Safety
4. Ensure Business Continuity
✔✔Steps in the Business Continuity Process - ✔✔1. Identify the organizations critical
processes
2. Identify the threats to those processes
3. Analyze the effects of the threats on those processes
4. Create a business continuity strategy
5. Create a business continuity plan
6. Monitor and revise the business continuity process
✔✔Guidelines for designing effective business continuity plan - ✔✔1. Design a plan that
is clear and capable of being easily read and understood during a crisis
2. Distribute copies of the plan to all relevant parties
3. Train all relevant parties in crisis procedures
✔✔Most business continuity plans contain - ✔✔1. The strategy to follow during a crisis
2. Information about individuals' roles and duties during a crisis
3. Steps for preventing further loss and / or damage
4. An emergency response plan that addresses life and safety issues
5. A crisis management plan for addressing communication and reputation issues
6. A business recovery and restoration plan for losses to property, processes and
products
7. Access to stress management and counseling
✔✔Methods of Loss Exposure Identification - ✔✔1. Document Analysis
2. Compliance Review
3. Personal Inspections
4. Experts
