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CPCU-500 Becoming a Leader in Risk Management and Insurance is now Stable and With Pass Result | Test Your Knowledge for Free

CPCU-500 Practice Questions

Becoming a Leader in Risk Management and Insurance

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Total Questions : 58

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Question # 11

Under the Commercial General Liability Coverage Form written on an occurrence basis, the insuring agreement imposes several conditions on the insurer’s duty to pay damages. Which one of the following is such a condition?

Options:

A.  

Damages must result from bodily injury or property damage as defined by common law.

B.  

The bodily injury or property damage must be discovered during the policy period, regardless of when the occurrence took place.

C.  

The insured must have been held negligent in causing the bodily injury or property damage to require a duty to defend from the insurer.

D.  

The occurrence must take place in the coverage territory as defined in the policy.

Discussion 0
Question # 12

John was injured when a fire started because of faulty work recently completed by a contractor. From the commercial liability standpoint of the contractor, this is an example of

Options:

A.  

Products liability

B.  

Employers liability

C.  

Completed operations liability

D.  

Premises and operations liability

Discussion 0
Question # 13

Company 1 sells Company 2 a piece of farm equipment. The sales contract specifies that Company 2 buys the equipment in an “as is” condition, with no promises made regarding the durability or performance of the equipment. This language in the warranty is known as

Options:

A.  

An exculpatory clause.

B.  

A limitation of liability.

C.  

A disclaimer of warranties.

D.  

A disavowal.

Discussion 0
Question # 14

A law firm has operated out of an old farmhouse for many years. The building and business personal property are insured under a Building and Personal Property Coverage Form with replacement cost coverage. A lightning strike damaged part of the building. Because of the age of the building, ordinances required that several of the damaged windows be replaced with larger more expensive windows as a means of egress. Which one of the following Building and Personal Property Coverage Form additional coverages would provide coverage in addition to the policy limit to help pay for this added expense?

Options:

A.  

Improvements and Betterments

B.  

Debris Removal

C.  

Increased Cost of Construction

D.  

Preservation of Property

Discussion 0
Question # 15

George is CFO of XYZ Medical and has just learned that the company is about to announce a major breach into its customer database. Two days before the proposed announcement date, George sells a 10,000 share block of his stock in XYZ Medical. After the hacking is announced, the share price falls by 27%. George’s actions likely constitute

Options:

A.  

Business judgment.

B.  

Insider trading.

C.  

Outside trading.

D.  

Reasonable care.

Discussion 0
Question # 16

Daniel was asked to give a presentation to employees on the topic of cyber risk. While preparing for the presentation, he thought about the most important thing that he wanted employees to take away from the presentation. Which one of the following steps in the communication process has Daniel completed?

Options:

A.  

Set a clear communication objective

B.  

Identify potential problems

C.  

Analyze your audience

D.  

Ask for feedback

Discussion 0
Question # 17

Omicron Technologies Inc. designs robotic assembly systems for use in manufacturing operations. It decides to acquire a controlling interest in two other local companies. One of the companies is a toy manufacturer, and the other is a small chain of hardware stores. Which one of the following corporate strategies is Omicron pursuing?

Options:

A.  

Unrelated diversification

B.  

Related diversification

C.  

Turnaround strategy

D.  

Vertical integration

Discussion 0
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