CPCU 553 exam with correct answers |\ |\ |\ |\ |\
T/F: retirement investment portfolio is example of Asset exposed
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to loss - CORRECT ANSWERS ✔✔True
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EX of Real Property - CORRECT ANSWERS ✔✔- Brick storage shed
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- Underground Pipes/flues
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- detached garage
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EX of Personal Property - CORRECT ANSWERS ✔✔- Sport
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equipment
- silverware
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- fishing boat
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- household appliances
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- Motorhome / automobile
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Compensatory Damages - CORRECT ANSWERS ✔✔- Special |\ |\ |\ |\ |\ |\ |\
Damages |\
-
Liability Loss - CORRECT ANSWERS ✔✔claim for money damages
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bc of injury to another party or their property
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Slander - CORRECT ANSWERS ✔✔Untrue, Oral statement that
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damages someone's reputation |\ |\
,Assets Exposed to Loss due to Health /Disability loss exposure -
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CORRECT ANSWERS ✔✔- Employment Income |\ |\ |\ |\
- Savings
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- Employer provided benefits
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NOT Social Security Income
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Primary risk to financial Assets for a retiree - CORRECT ANSWERS
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✔✔retirement assets will be insufficient
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Financial Consequences of Loss - CORRECT ANSWERS ✔✔-
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Reduction in Value of property |\ |\ |\ |\
- Increased Expense
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- Lost Income
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General Damages - CORRECT ANSWERS ✔✔compensate victim
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for losses with NO measurable expense such as Pain & Suffering
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Special Damages - CORRECT ANSWERS ✔✔Compensatory
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damages awarding money for specific expenses such as medical
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bills and lost wages
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Tort - CORRECT ANSWERS ✔✔Wrongful act/omission other than
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crime or breach of contract that invades a legally protected right
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,Sources of Tort Liability - CORRECT ANSWERS ✔✔1. Negligence
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2. Intentional Torts
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3. Absolute (strict) Liability
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4 Elements of Negligence - CORRECT ANSWERS ✔✔1. duty to act
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2. breach of that duty
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3. injury/damage occurs
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4. injury/damage is a DIRECT cause of the breach of duty (must
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be unbroken chain of events)
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Libel - CORRECT ANSWERS ✔✔written/printed untrue statement
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Trespass - CORRECT ANSWERS ✔✔Unauthorized possession or
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use of land. |\ |\
Contractual Liability - CORRECT ANSWERS ✔✔Leases for |\ |\ |\ |\ |\ |\
homes/apartments and rental agreements
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Statutory Liabilitiy - CORRECT ANSWERS ✔✔arise from
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statutes/laws. Auto Accidents
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Personal Financial Planing Loss Exposure - CORRECT ANSWERS
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✔✔Life, Health, & Retirement |\ |\ |\
Premature death - CORRECT ANSWERS ✔✔dying before life
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expectancy
, Underemployment - CORRECT ANSWERS ✔✔Reduced work hours |\ |\ |\ |\ |\ |\
Most households choose risk management techniques by: -
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CORRECT ANSWERS ✔✔financial criteria |\ |\ |\
Families should apply 1 risk financing technique and 1 risk
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control technique - CORRECT ANSWERS ✔✔TRUE
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Hedging - CORRECT ANSWERS ✔✔money is paid to offset the risk
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associated with another Asset
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Loss Prevention Measure - CORRECT ANSWERS ✔✔Reduces loss
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Frequency by breaking sequence of events leading to a loss
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Social Security - CORRECT ANSWERS ✔✔Social Insurance to
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mitigate financial uncertainty of retirement loss exposure
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For insured, the primary source of generating scenarios for pre-
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loss analysis is - CORRECT ANSWERS ✔✔Past loss experience
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Pre-loss policy analysis almost exclusively relies on - CORRECT
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ANSWERS ✔✔Scenario analysis |\ |\
DICE - CORRECT ANSWERS ✔✔- Declarations
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- Insuring Agreement
|\ |\
T/F: retirement investment portfolio is example of Asset exposed
|\ |\ |\ |\ |\ |\ |\ |\ |\
to loss - CORRECT ANSWERS ✔✔True
|\ |\ |\ |\ |\
EX of Real Property - CORRECT ANSWERS ✔✔- Brick storage shed
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
|\
- Underground Pipes/flues
|\ |\ |\
- detached garage
|\ |\
EX of Personal Property - CORRECT ANSWERS ✔✔- Sport
|\ |\ |\ |\ |\ |\ |\ |\ |\
equipment
- silverware
|\
- fishing boat
|\ |\ |\
- household appliances
|\ |\ |\
- Motorhome / automobile
|\ |\ |\
Compensatory Damages - CORRECT ANSWERS ✔✔- Special |\ |\ |\ |\ |\ |\ |\
Damages |\
-
Liability Loss - CORRECT ANSWERS ✔✔claim for money damages
|\ |\ |\ |\ |\ |\ |\ |\ |\
bc of injury to another party or their property
|\ |\ |\ |\ |\ |\ |\ |\
Slander - CORRECT ANSWERS ✔✔Untrue, Oral statement that
|\ |\ |\ |\ |\ |\ |\ |\
damages someone's reputation |\ |\
,Assets Exposed to Loss due to Health /Disability loss exposure -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔- Employment Income |\ |\ |\ |\
- Savings
|\
- Employer provided benefits
|\ |\ |\ |\
NOT Social Security Income
|\ |\ |\
Primary risk to financial Assets for a retiree - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔retirement assets will be insufficient
|\ |\ |\ |\ |\
Financial Consequences of Loss - CORRECT ANSWERS ✔✔-
|\ |\ |\ |\ |\ |\ |\ |\
Reduction in Value of property |\ |\ |\ |\
- Increased Expense
|\ |\ |\
- Lost Income
|\ |\
General Damages - CORRECT ANSWERS ✔✔compensate victim
|\ |\ |\ |\ |\ |\ |\
for losses with NO measurable expense such as Pain & Suffering
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Special Damages - CORRECT ANSWERS ✔✔Compensatory
|\ |\ |\ |\ |\ |\
damages awarding money for specific expenses such as medical
|\ |\ |\ |\ |\ |\ |\ |\ |\
bills and lost wages
|\ |\ |\
Tort - CORRECT ANSWERS ✔✔Wrongful act/omission other than
|\ |\ |\ |\ |\ |\ |\ |\
crime or breach of contract that invades a legally protected right
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
,Sources of Tort Liability - CORRECT ANSWERS ✔✔1. Negligence
|\ |\ |\ |\ |\ |\ |\ |\
2. Intentional Torts
|\ |\ |\
3. Absolute (strict) Liability
|\ |\ |\
4 Elements of Negligence - CORRECT ANSWERS ✔✔1. duty to act
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
2. breach of that duty
|\ |\ |\ |\
3. injury/damage occurs
|\ |\ |\
4. injury/damage is a DIRECT cause of the breach of duty (must
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
be unbroken chain of events)
|\ |\ |\ |\
Libel - CORRECT ANSWERS ✔✔written/printed untrue statement
|\ |\ |\ |\ |\ |\
Trespass - CORRECT ANSWERS ✔✔Unauthorized possession or
|\ |\ |\ |\ |\ |\ |\
use of land. |\ |\
Contractual Liability - CORRECT ANSWERS ✔✔Leases for |\ |\ |\ |\ |\ |\
homes/apartments and rental agreements
|\ |\ |\ |\
Statutory Liabilitiy - CORRECT ANSWERS ✔✔arise from
|\ |\ |\ |\ |\ |\
statutes/laws. Auto Accidents
|\ |\ |\
Personal Financial Planing Loss Exposure - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔Life, Health, & Retirement |\ |\ |\
Premature death - CORRECT ANSWERS ✔✔dying before life
|\ |\ |\ |\ |\ |\ |\ |\
expectancy
, Underemployment - CORRECT ANSWERS ✔✔Reduced work hours |\ |\ |\ |\ |\ |\
Most households choose risk management techniques by: -
|\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔financial criteria |\ |\ |\
Families should apply 1 risk financing technique and 1 risk
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
control technique - CORRECT ANSWERS ✔✔TRUE
|\ |\ |\ |\ |\
Hedging - CORRECT ANSWERS ✔✔money is paid to offset the risk
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
associated with another Asset
|\ |\ |\ |\
Loss Prevention Measure - CORRECT ANSWERS ✔✔Reduces loss
|\ |\ |\ |\ |\ |\ |\ |\
Frequency by breaking sequence of events leading to a loss
|\ |\ |\ |\ |\ |\ |\ |\ |\
Social Security - CORRECT ANSWERS ✔✔Social Insurance to
|\ |\ |\ |\ |\ |\ |\ |\
mitigate financial uncertainty of retirement loss exposure
|\ |\ |\ |\ |\ |\
For insured, the primary source of generating scenarios for pre-
|\ |\ |\ |\ |\ |\ |\ |\ |\
loss analysis is - CORRECT ANSWERS ✔✔Past loss experience
|\ |\ |\ |\ |\ |\ |\ |\
Pre-loss policy analysis almost exclusively relies on - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Scenario analysis |\ |\
DICE - CORRECT ANSWERS ✔✔- Declarations
|\ |\ |\ |\ |\
- Insuring Agreement
|\ |\
