7/13/25, 11:55
AM
CPCU 520 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
GRADED A++ 2025/2026 GUARANTEED PASS
Terms in this set (136)
It's the interconnected activities in a
business through which a product or
Value Chain service is produced and sold. Used
for analyzing the input activities a
single company performs to
create marketable outputs for
customers and for identifying
ways to maximize its competitive
advantage.
1/
28
,7/13/25, 11:55
AM
Insurance Value Marketing and distribution, underwriting,
Chain Model and claims.
a network of connections between
each of the entities (namely
Supply Chain organizations) that are used
throughout the process of bringing a
product or service to market—from
suppliers to end users. Used for
identifying how reliant a business is
on any point in the supply chain and
any potential weak links that could
disrupt business.
Cost Leadership A business-level strategy through
which a company seeks cost
efficiencies in all operational areas.
involves determining what products
Marketing and customers want and need,
Distribution advertising those products
(communicating their value to
customers), and delivering them to
customers.
The process of selecting insureds,
2/
28
, 7/13/25, 11:55
AM
pricing coverage, determining
Underwriting insurance policy terms and
conditions, and then monitoring the
underwriting decisions made. To help
the insurer write and maintain
profitable business. This requires
selecting insureds whose covered
losses are not likely to exceed the
number of losses the insurer
anticipated when it priced the insureds'
coverage.
Loss Ratio A ratio that measures losses and loss
adjustment expenses against earned
premiums and that reflects the
percentage of premiums being
consumed by losses.
This function is staffed by employees
Claims who are trained to evaluate and
settle claims and to negotiate or
litigate the settlement of claims.
Critical link between an insurer and
its customers.
help prevent losses and reduce
3/
28
AM
CPCU 520 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
GRADED A++ 2025/2026 GUARANTEED PASS
Terms in this set (136)
It's the interconnected activities in a
business through which a product or
Value Chain service is produced and sold. Used
for analyzing the input activities a
single company performs to
create marketable outputs for
customers and for identifying
ways to maximize its competitive
advantage.
1/
28
,7/13/25, 11:55
AM
Insurance Value Marketing and distribution, underwriting,
Chain Model and claims.
a network of connections between
each of the entities (namely
Supply Chain organizations) that are used
throughout the process of bringing a
product or service to market—from
suppliers to end users. Used for
identifying how reliant a business is
on any point in the supply chain and
any potential weak links that could
disrupt business.
Cost Leadership A business-level strategy through
which a company seeks cost
efficiencies in all operational areas.
involves determining what products
Marketing and customers want and need,
Distribution advertising those products
(communicating their value to
customers), and delivering them to
customers.
The process of selecting insureds,
2/
28
, 7/13/25, 11:55
AM
pricing coverage, determining
Underwriting insurance policy terms and
conditions, and then monitoring the
underwriting decisions made. To help
the insurer write and maintain
profitable business. This requires
selecting insureds whose covered
losses are not likely to exceed the
number of losses the insurer
anticipated when it priced the insureds'
coverage.
Loss Ratio A ratio that measures losses and loss
adjustment expenses against earned
premiums and that reflects the
percentage of premiums being
consumed by losses.
This function is staffed by employees
Claims who are trained to evaluate and
settle claims and to negotiate or
litigate the settlement of claims.
Critical link between an insurer and
its customers.
help prevent losses and reduce
3/
28
