CPCU 551 Assignment 1 ,2,3,4 questions & answers graded A+

CPCU 551 Assignment 1 ,2,3,4 questions
& answers graded A+

Which one of the following statements regarding pools is correct?



Select one:

A. Each pool member will pay higher premiums compared with guaranteed cost insurance.

B. Pool members benefit from risk sharing with other pool members.

C. Pools are expensive for members because pools generally purchase reinsurance.

D. Public entities cannot be members of pools.

Question 2ID# 5926843

Points: 1Not flagged - correct answer ✔✔B



Question text

Securing outside materials and maintaining roof tie-downs are risk control measures particularly
important for the peril of



Select one:

A. Explosion.

B. Windstorm.

C. Flood.

D. Earthquake.

Question 3ID# 5856415

Points: 1Not flagged - correct answer ✔✔B

,Question text

The analysis step of the risk management process involves considering the four dimension of a
loss exposure. If any of these dimensions of loss exposure analysis involve empirical
distributions developed from past losses, which one of the following needs to be determined?



Select one:

A. The current loss frequency and severity trended into the future.

B. The points at which losses occur and loss payments are made.

C. The total dollar amount of losses for all occurrences during a specific period.

D. The credibility of the data being used.

Question 4ID# 5821320

Points: 1Not flagged - correct answer ✔✔D



Question text

For property insurance purposes, wall-to-wall carpeting is typically considered to be part of the
building because it



Select one:

A. Tends to depreciate in value along with the building.

B. Is permanently attached to the building.

C. Is easy to value.

D. Is readily visible.

Question 5ID# 5941424

Points: 1Not flagged - correct answer ✔✔B



Question text

The availability of funds to pay for losses is most important to organizations when

,Select one:

A. The organization's retained exposures are low.

B. Asset liquidity is extremely high.

C. The level of uncertainty surrounding losses is low.

D. Operations have been disrupted.

Question 6ID# 5926847

Points: 1Not flagged - correct answer ✔✔D



Question text

Martin enters a warehouse by smashing a basement window and climbing through the opening.
He steals supplies and a box of petty cash and exits the building through the same window. This
is an example of which one of the following types of theft?



Select one:

A. Embezzlement

B. Robbery

C. Burglary

D. Employee dishonesty

Question 7ID# 5856416

Points: 1Not flagged - correct answer ✔✔C



Question text

In loss analysis, the Prouty Approach primarily involves



Select one:

A. Loss credibility.

, B. Loss frequency and severity.

C. Loss timing.

D. Total dollar loss values.

Question 8ID# 5855905

Points: 1Not flagged - correct answer ✔✔B



Question text

Alice bought furniture for her home using store credit. There were no liens attached, and when
Alice could not pay the full amount for the furniture, the store owner sued her. The store owner
was



Select one:

A. A bailor.

B. A lessor.

C. An unsecured creditor.

D. A secured creditor.

Question 9ID# 5862587

Points: 1Not flagged - correct answer ✔✔C



Question text

Jack and Susan own and manage a hotel. They are concerned about their responsibility for the
property of their guests and whether they have an insurable interest in that property and thus
could buy insurance to cover their responsibility. Most courts would hold that they do have an
insurable interest in their guests' property based on which one of the following legal bases?



Select one:

A. Factual expectancy

B. Contractual obligations