ARM 402 PRACTICE CERTIFICATION
EVALUATION TEST 2026 FULL QUESTIONS AND
CORRECT ANSWERS ALREADY PASSED
GRADED A+
◉ One characteristic of captive insurance plans is that
A. Losses are rarely funded because of the operation of captives.
B. Administrative requirements are low because of the relationship
between the owner and captive.
C. The severity of losses transferred to captives is generally low to
medium.
D. They typically require no retention. Answer: C
◉ Hold-harmless agreements are
A. Enforceable without legal consideration.
B. Comprised of two parties—the indemnitor and the indemnitee.
C. Highly regulated.
D. Standardized.. Answer: B
◉ A retrospective rating plan
A. Bases pricing on past loss experience.
,B. Is a form of self-insurance.
C. Is considered to be guaranteed-cost insurance.
D. Is insurance that is subject to a rating formula.. Answer: D
◉ Which one of the following is true regarding patents?
A. Patents do not expire.
B. Plant patents are granted on biologically asexually reproducing
plants.
C. Patent applications must show each user's name.
D. International standards apply to patents.. Answer: B
◉ A patent issued for an invention or process that has some
usefulness, does not have to be marketable, but must work is a
A. Process patent.
B. Design patent.
C. Plant patent.
D. Utility patent.. Answer: D
◉ The type of patent most appropriate for an invention or a process
that has some usefulness is a
A. Plant patent.
B. Service patent.
,C. Utility patent.
D. Design patent.. Answer: C
◉ Betty has invented a new device that reduces the time it takes to
backup computer data by 90 percent. She believes this will be of
interest to several major computer and data manufacturers. Betty
should protect her invention with a
A. Servicemark.
B. Copyright.
C. Trademark.
D. Patent.. Answer: D
◉ The duration of a patent right varies depending on the type of
patent. Which one of the following patents last for 14 years from the
date of issuance?
A. Design patent
B. Plant patent
C. Process patent
D. Utility patent. Answer: A
◉ Brooks Irrigation Services has designed plans for a new lawn
sprinkler system. In order to safeguard their document and control
infringement exposures, they have placed the notation © 2012
, Brooks Irrigation Services on their published plans. This is known as
a copyright
A. Restrictive covenant.
B. Laches.
C. Registration.
D. Notice.. Answer: D
◉ Copyrights are generally owned by the person (author) who
created the work, except when the work
A. Has not been registered with the U.S. Copyright Office.
B. Was jointly prepared by two or more authors.
C. Was created in a reproducible medium such as video or audio
tape.
D. Was created in the course of the author's employment.. Answer: D
◉ The product of human intelligence that has economic value
defines
A. Trade secret.
B. Infringement.
C. Copyright.
D. Intellectual property.. Answer: D
EVALUATION TEST 2026 FULL QUESTIONS AND
CORRECT ANSWERS ALREADY PASSED
GRADED A+
◉ One characteristic of captive insurance plans is that
A. Losses are rarely funded because of the operation of captives.
B. Administrative requirements are low because of the relationship
between the owner and captive.
C. The severity of losses transferred to captives is generally low to
medium.
D. They typically require no retention. Answer: C
◉ Hold-harmless agreements are
A. Enforceable without legal consideration.
B. Comprised of two parties—the indemnitor and the indemnitee.
C. Highly regulated.
D. Standardized.. Answer: B
◉ A retrospective rating plan
A. Bases pricing on past loss experience.
,B. Is a form of self-insurance.
C. Is considered to be guaranteed-cost insurance.
D. Is insurance that is subject to a rating formula.. Answer: D
◉ Which one of the following is true regarding patents?
A. Patents do not expire.
B. Plant patents are granted on biologically asexually reproducing
plants.
C. Patent applications must show each user's name.
D. International standards apply to patents.. Answer: B
◉ A patent issued for an invention or process that has some
usefulness, does not have to be marketable, but must work is a
A. Process patent.
B. Design patent.
C. Plant patent.
D. Utility patent.. Answer: D
◉ The type of patent most appropriate for an invention or a process
that has some usefulness is a
A. Plant patent.
B. Service patent.
,C. Utility patent.
D. Design patent.. Answer: C
◉ Betty has invented a new device that reduces the time it takes to
backup computer data by 90 percent. She believes this will be of
interest to several major computer and data manufacturers. Betty
should protect her invention with a
A. Servicemark.
B. Copyright.
C. Trademark.
D. Patent.. Answer: D
◉ The duration of a patent right varies depending on the type of
patent. Which one of the following patents last for 14 years from the
date of issuance?
A. Design patent
B. Plant patent
C. Process patent
D. Utility patent. Answer: A
◉ Brooks Irrigation Services has designed plans for a new lawn
sprinkler system. In order to safeguard their document and control
infringement exposures, they have placed the notation © 2012
, Brooks Irrigation Services on their published plans. This is known as
a copyright
A. Restrictive covenant.
B. Laches.
C. Registration.
D. Notice.. Answer: D
◉ Copyrights are generally owned by the person (author) who
created the work, except when the work
A. Has not been registered with the U.S. Copyright Office.
B. Was jointly prepared by two or more authors.
C. Was created in a reproducible medium such as video or audio
tape.
D. Was created in the course of the author's employment.. Answer: D
◉ The product of human intelligence that has economic value
defines
A. Trade secret.
B. Infringement.
C. Copyright.
D. Intellectual property.. Answer: D
