MQI RISK MANAGEMENT ENTERPRISE
EXAM QUESTIONS AND ANSWERS
/. When are your reserves hit? - Answer-✅Losses in a revenue producing state. Ex.
CDW losses, fraudulent rentals, 91 day DX receivables.
/.How does a reserve loss work? - Answer-✅It is spread across 12 months and hits
your branch one month after the loss occurs.
/.What is the reserve goal? - Answer-✅$25 per car or less. To see where you stand on
the month check accident completion report.
/.How do you manage your reserves? - Answer-✅Proper underwriting, detailed dx's, file
claim, and collect deductible.
/.How to calculate your reserves? - Answer-✅Monthly losses/12 months x 110%/ fleet
size
/.Loss per Unit (LPU) - Answer-✅One month snap shot of your reserves to reduce
(same as reserves) proper trunk to trunks, use damage evaluator, collect deductibles,
file claims with insurance companies
/.Define Uninsured Losses: - Answer-✅Cars in a non-revenue producing state except
conversions. Ex. employee accidents, conversion, undocumented damage, lot damage.
/.What is the goal for Uninsured Losses? - Answer-✅$6 or less per car
/.How to manage uninsured losses. - Answer-✅Proper trunk to trunks, underwriting,
callbacks, promote safe driving.
/.Define primary liability: - Answer-✅Pay minimal
/.Define secondary liability: - Answer-✅Pays after primary
/.Define vicarious liability: - Answer-✅Unlimited liability exposure.
/.Liability Rules by State: - Answer-✅MD- Secondary for replacement rentals, primary
for all others.
VA- Primary for all, but our rental contract gives us the right to recover losses from the
renter.
EXAM QUESTIONS AND ANSWERS
/. When are your reserves hit? - Answer-✅Losses in a revenue producing state. Ex.
CDW losses, fraudulent rentals, 91 day DX receivables.
/.How does a reserve loss work? - Answer-✅It is spread across 12 months and hits
your branch one month after the loss occurs.
/.What is the reserve goal? - Answer-✅$25 per car or less. To see where you stand on
the month check accident completion report.
/.How do you manage your reserves? - Answer-✅Proper underwriting, detailed dx's, file
claim, and collect deductible.
/.How to calculate your reserves? - Answer-✅Monthly losses/12 months x 110%/ fleet
size
/.Loss per Unit (LPU) - Answer-✅One month snap shot of your reserves to reduce
(same as reserves) proper trunk to trunks, use damage evaluator, collect deductibles,
file claims with insurance companies
/.Define Uninsured Losses: - Answer-✅Cars in a non-revenue producing state except
conversions. Ex. employee accidents, conversion, undocumented damage, lot damage.
/.What is the goal for Uninsured Losses? - Answer-✅$6 or less per car
/.How to manage uninsured losses. - Answer-✅Proper trunk to trunks, underwriting,
callbacks, promote safe driving.
/.Define primary liability: - Answer-✅Pay minimal
/.Define secondary liability: - Answer-✅Pays after primary
/.Define vicarious liability: - Answer-✅Unlimited liability exposure.
/.Liability Rules by State: - Answer-✅MD- Secondary for replacement rentals, primary
for all others.
VA- Primary for all, but our rental contract gives us the right to recover losses from the
renter.
