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ARM 402 FINAL EXAM AND PRACTICE EXAM
QUESTIONS 2026 BANK CURRENTLY TESTING
COMPLETE ACTUAL VERIFIED EXAM QUESTIONS
WITH DETAILED VERIFIED ANSWERS EXPERT
VERIFIED /ALREADY GRADED A+||NEWEST EXAM!!!
Telematics devices allow organizations to accurately
identify patterns of risk and predict risk for which one of
the following types of loss exposures?
A. Automobile
B. Property
C. Workers compensation
D. Business income - Answer-A
Which one of the following is a major benefit that smart
insurance contracts can provide to insurance customers?
A. Smart contracts can render a risk completely
preventable.
B. Smart contracts can provide broader coverage at a
lower cost.
C. Smart contracts can dramatically increase the speed of
loss payments.
D. Smart contracts can significantly increase the speed of
premium payments. - Answer-C
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Maxwell Company has just invested a large sum in new,
highly-sophisticated computer equipment and building
renovations. Maxwell arranged to lease identical
equipment at another location so that it could use the
equipment in the event of a disaster at its location.
Maxwell's lease of identical equipment at another location
is an example of
A. Duplication.
B. Separation.
C. Loss reduction.
D. Diversification. - Answer-A
Olivia is planning a meeting to explain a new cyber
security procedure. She expects that the meeting will be
impeded by hidden agendas. Which one of the following is
the best way for Olivia to deal with potential hidden
agendas?
A. Olivia should refuse to take questions during her
meeting, and request that any questions be forwarded to
her in writing after the meeting.
B. Olivia should start the meeting by stating that she does
not expect everyone like the new procedure, but they must
accept it.
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C. Olivia should start the meeting by asking participants to
state their concerns or feeling about the procedure.
D. Olivia should hold a separate meeting for those
individuals who she suspects have a hidden agenda. -
Answer-C
Which one of the following is a common problem with
meetings that leaders should try to avoid?
A. Trying to stick to an agenda and avoid interruptions
B. Committing to an end time, as well as a start time
C. Having the wrong people attend
D. Stating the objective in writing before the meeting -
Answer-C
Which one of the following statements about correlation
and covariance is true?
A. Covariance is a scaled version of correlation and
ranges from -1 to +1.
B. The correlation between variables ranges from 0 to +1.
C. Covariance measures the extent to which variables
move together or independently.
D. Correlation measures causality. - Answer-C
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Once a holistic risk management program is created and
put into effect, which one of the following methods can be
used to allow constant and consistent monitoring of the
process?
A. Bow-tie diagram
B. Feedback loop
C. Dashboard reporting
D. SWOT analysis - Answer-B
A risk control technique that reduces the frequency of a
particular loss is
A. Loss prevention.
B. Loss reduction.
C. Diversification.
D. Duplication. - Answer-A
Ivanhoe Corporation purchases stock in a bank and in a
pharmaceutical manufacturer. Because these are
unrelated industries, Ivanhoe hope that any losses in one
stock will be more than offset by profits in another. Ivanhoe
is using which one of the following risk management
techniques?
A. Risk transfer
B. Duplication
ARM 402 FINAL EXAM AND PRACTICE EXAM
QUESTIONS 2026 BANK CURRENTLY TESTING
COMPLETE ACTUAL VERIFIED EXAM QUESTIONS
WITH DETAILED VERIFIED ANSWERS EXPERT
VERIFIED /ALREADY GRADED A+||NEWEST EXAM!!!
Telematics devices allow organizations to accurately
identify patterns of risk and predict risk for which one of
the following types of loss exposures?
A. Automobile
B. Property
C. Workers compensation
D. Business income - Answer-A
Which one of the following is a major benefit that smart
insurance contracts can provide to insurance customers?
A. Smart contracts can render a risk completely
preventable.
B. Smart contracts can provide broader coverage at a
lower cost.
C. Smart contracts can dramatically increase the speed of
loss payments.
D. Smart contracts can significantly increase the speed of
premium payments. - Answer-C
,2|Page
Maxwell Company has just invested a large sum in new,
highly-sophisticated computer equipment and building
renovations. Maxwell arranged to lease identical
equipment at another location so that it could use the
equipment in the event of a disaster at its location.
Maxwell's lease of identical equipment at another location
is an example of
A. Duplication.
B. Separation.
C. Loss reduction.
D. Diversification. - Answer-A
Olivia is planning a meeting to explain a new cyber
security procedure. She expects that the meeting will be
impeded by hidden agendas. Which one of the following is
the best way for Olivia to deal with potential hidden
agendas?
A. Olivia should refuse to take questions during her
meeting, and request that any questions be forwarded to
her in writing after the meeting.
B. Olivia should start the meeting by stating that she does
not expect everyone like the new procedure, but they must
accept it.
,3|Page
C. Olivia should start the meeting by asking participants to
state their concerns or feeling about the procedure.
D. Olivia should hold a separate meeting for those
individuals who she suspects have a hidden agenda. -
Answer-C
Which one of the following is a common problem with
meetings that leaders should try to avoid?
A. Trying to stick to an agenda and avoid interruptions
B. Committing to an end time, as well as a start time
C. Having the wrong people attend
D. Stating the objective in writing before the meeting -
Answer-C
Which one of the following statements about correlation
and covariance is true?
A. Covariance is a scaled version of correlation and
ranges from -1 to +1.
B. The correlation between variables ranges from 0 to +1.
C. Covariance measures the extent to which variables
move together or independently.
D. Correlation measures causality. - Answer-C
, 4|Page
Once a holistic risk management program is created and
put into effect, which one of the following methods can be
used to allow constant and consistent monitoring of the
process?
A. Bow-tie diagram
B. Feedback loop
C. Dashboard reporting
D. SWOT analysis - Answer-B
A risk control technique that reduces the frequency of a
particular loss is
A. Loss prevention.
B. Loss reduction.
C. Diversification.
D. Duplication. - Answer-A
Ivanhoe Corporation purchases stock in a bank and in a
pharmaceutical manufacturer. Because these are
unrelated industries, Ivanhoe hope that any losses in one
stock will be more than offset by profits in another. Ivanhoe
is using which one of the following risk management
techniques?
A. Risk transfer
B. Duplication
