CPCU 500 Exam 5 Questions and Answers

CPCU 500 Exam 5 Questions and Answers The risk control measures used to protect people and property from the adverse effects of hostile fires are collectively called Fire safety. Joe owns a small stock brokerage, Zoran Company. He also serves as a director and pension fund fiduciary at Zoran Company. Most of the pension fund at Zoran Company is invested in the company's own stock. When Zoran starts having financial troubles, the price of the stock goes down. Various brokers at Joe's firm want to move much of the Zoran pension fund to a safer investment. However, Joe fails to approve the transfer, because he fears the effect such a move would have on Zoran. As a result, the value of the pension fund drops. Which one of the following fiduciary duties is Joe breaching by focusing solely on the possible financial impact that a change would have on Zoran Company? The duty of loyalty Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:15 Full screen Brainpower Read More Maintaining roof and wall systems, including roof tie-downs, in good repair and providing adequate supports for outside structures is a pre-loss action for Windstorm. Certain types of property losses such as drought, flood, and earthquake are referred to as natural because It is beyond human control. The occupancy class characterized by a large number of people who gather in a space that is relatively unfamiliar to them is Mercantile. Buildings constructed of reinforced concrete have been successful withstanding this disaster, but building all structures in this manner is neither practical nor economical. This statement pertains to which one of the following disasters? Tornado A post-loss action for a flood cause of loss is Clearing drains of debris. Motley Manufacturing is considering locating one of its facilities in northern California, but is concerned about the possibility of loss due to which one of the following natural hazards, which has one of the highest loss exposures for this phenomenon in this part of the country? Earthquake Some buildings have modest economic value but still have high replacement costs. One prime reason for this might be because of Construction styles that are large or ornate. The risk management professional for a large multi-location super market chain in the New England area observed that all of the buildings have a flat roof. His concern is primarily due to the possible loss resulting from Weight of snow, sleet, and ice. A risk manager and safety engineer need to consider which one of the following interdependent elements when evaluating the premises condition? Construction, occupancy, protection, and external exposures Location is a key pre-loss activity to control earthquake damage because Structures situated on stable earth can absorb most earthquake shock waves. Which one of the following valuation standards is most appropriate for valuing products that are relatively indistinguishable from one another, such as agricultural products, oil, or precious metals? Market value Which one of the following statements is true regarding sources of risk affecting property exposures? Risk control techniques can usually manage the likelihood and consequences of human risk sources to some extent. An organization implements a new procedure that requires employees who travel to take different flights rather than traveling together. This is an example of which one of the following risk control techniques for this human resource risk? Separation