CPCU 500 EXAM STUDY GUIDE
QUESTIONS WITH ANSWERS LATEST
UPDATE ALREADY GRADED A+
.Kendall Incorporated is a manufacturer located in Maryland.
Which one of the following would indicate that Kendall
Incorporated is using the risk control technique of diversification
to reduce loss severity?
Select one:
A. Kendall Incorporated maintains a set of spare parts for a few
pieces of key machinery in its factory.
B. Kendall Incorporated produces a wide variety of products to
serve a range of markets.
C. Kendall Incorporated produces its products at two factories
that are located 15 miles apart.
D. Kendall Incorporated has arrangements with more than one
supplier of a key raw material. - correct answer- B.
,Kendall Incorporated produces a wide variety of products to
serve a range of markets.
A building contractor uses lower grade materials than called for
in the specifications for an office building. A year after the
building was completed, a balcony collapses, injuring several
employees and customers and causing damage to the building
and contents. For the building construction company, this is an
example of
Select one:
A. A completed operations liability exposure.
B. A products liability exposure.
C. A premises liability exposure.
D. An operations liability exposure. - correct answer-
A. A completed operations liability exposure.
,A commercial building may contain furniture, machinery and
equipment, raw materials, and finished products. Which one of
the following is the term generally used in property insurance
policies to refer to all these types of property?
Select one:
A. Business personal property
B. Commercial property
C. Stock
D. Inventory - correct answer- A. Business personal
property
A company turnover rate well above company and industry
averages could be a sign of
Select one:
, A. Personnel problems that need to be addressed.
B. Claims-consciousness.
C. Financial problems that need to be addressed.
D. Employee slacking. - correct answer- A. Personnel
problems that need to be addressed.
A completed operations liability loss exposure differs from a
products liability loss exposure in that the completed operations
liability loss exposure
Select one:
A. Is based solely on strict liability rather than negligence or
strict liability.
B. Arises out of the entity's completed work, including defective
parts or materials furnished with the work.
QUESTIONS WITH ANSWERS LATEST
UPDATE ALREADY GRADED A+
.Kendall Incorporated is a manufacturer located in Maryland.
Which one of the following would indicate that Kendall
Incorporated is using the risk control technique of diversification
to reduce loss severity?
Select one:
A. Kendall Incorporated maintains a set of spare parts for a few
pieces of key machinery in its factory.
B. Kendall Incorporated produces a wide variety of products to
serve a range of markets.
C. Kendall Incorporated produces its products at two factories
that are located 15 miles apart.
D. Kendall Incorporated has arrangements with more than one
supplier of a key raw material. - correct answer- B.
,Kendall Incorporated produces a wide variety of products to
serve a range of markets.
A building contractor uses lower grade materials than called for
in the specifications for an office building. A year after the
building was completed, a balcony collapses, injuring several
employees and customers and causing damage to the building
and contents. For the building construction company, this is an
example of
Select one:
A. A completed operations liability exposure.
B. A products liability exposure.
C. A premises liability exposure.
D. An operations liability exposure. - correct answer-
A. A completed operations liability exposure.
,A commercial building may contain furniture, machinery and
equipment, raw materials, and finished products. Which one of
the following is the term generally used in property insurance
policies to refer to all these types of property?
Select one:
A. Business personal property
B. Commercial property
C. Stock
D. Inventory - correct answer- A. Business personal
property
A company turnover rate well above company and industry
averages could be a sign of
Select one:
, A. Personnel problems that need to be addressed.
B. Claims-consciousness.
C. Financial problems that need to be addressed.
D. Employee slacking. - correct answer- A. Personnel
problems that need to be addressed.
A completed operations liability loss exposure differs from a
products liability loss exposure in that the completed operations
liability loss exposure
Select one:
A. Is based solely on strict liability rather than negligence or
strict liability.
B. Arises out of the entity's completed work, including defective
parts or materials furnished with the work.
