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CPCU 551 Questions and Correct Answers
Internet of Things (IoT) Ans: a network of objects that transmit
data to computers
Net income Ans: The difference between revenues (such as money
received for goods or services) and expenses (such as money, paid
for merchandise, rent, and insurance)
Business Income worksheet Ans: A worksheet for calculating the
amount of insurance necessary to comply with the coinsurance
condition of business income, insurance forms, for reporting
business income values to the insurer, or for providing
underwriters with information they need to evaluate an
organizations business income loss exposure
Business Income Insurance Ans: Insurance that covers the
reduction in an organizations income when operations are
interrupted by damage to property caused by a covered peril
Business Interruption Ans: Loss of revenue that a business or
another organization sustains because it's operations are
suspended as a result of physical injury to its property
Profit Ans: Net income that results when revenue exceeds
expenses
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Net Loss Ans: Net income that results when expenses exceed
revenues
Net Income Equation Ans: Revenues - Expenses = Net Income
Continuing expenses Ans: Expenses that continue to be incurred
during a business interruption
Non-continuing expenses Ans: Expenses that will not continue
during a business interruption
Extra expenses Ans: Expenses, in addition to ordinary expenses,
that an organization incurs to mitigate the effects of a business
interruption
Shipper Ans: The person or organization, shipping goods, often
the seller of the goods
Consignee Ans: The person or organization that receives property
being transported by a carrier
Common Carriers Ans: Airlines, railroads, or trucking companies
that furnished transportation to any member of the public seeking
their offered services
Contract Carriers Ans: Carriers that furnish transportation
services to shippers with whom they have contracts
© 2025 All rights reserved
CPCU 551 Questions and Correct Answers
Internet of Things (IoT) Ans: a network of objects that transmit
data to computers
Net income Ans: The difference between revenues (such as money
received for goods or services) and expenses (such as money, paid
for merchandise, rent, and insurance)
Business Income worksheet Ans: A worksheet for calculating the
amount of insurance necessary to comply with the coinsurance
condition of business income, insurance forms, for reporting
business income values to the insurer, or for providing
underwriters with information they need to evaluate an
organizations business income loss exposure
Business Income Insurance Ans: Insurance that covers the
reduction in an organizations income when operations are
interrupted by damage to property caused by a covered peril
Business Interruption Ans: Loss of revenue that a business or
another organization sustains because it's operations are
suspended as a result of physical injury to its property
Profit Ans: Net income that results when revenue exceeds
expenses
© 2025 All rights reserved
, 2 | Page
Net Loss Ans: Net income that results when expenses exceed
revenues
Net Income Equation Ans: Revenues - Expenses = Net Income
Continuing expenses Ans: Expenses that continue to be incurred
during a business interruption
Non-continuing expenses Ans: Expenses that will not continue
during a business interruption
Extra expenses Ans: Expenses, in addition to ordinary expenses,
that an organization incurs to mitigate the effects of a business
interruption
Shipper Ans: The person or organization, shipping goods, often
the seller of the goods
Consignee Ans: The person or organization that receives property
being transported by a carrier
Common Carriers Ans: Airlines, railroads, or trucking companies
that furnished transportation to any member of the public seeking
their offered services
Contract Carriers Ans: Carriers that furnish transportation
services to shippers with whom they have contracts
© 2025 All rights reserved
