Online Access Free CPCU-500 Exam Questions

Blithe Insurance is a large commercial lines insurer that has been in business for over thirty years. Blithe's corporate goals are simply stated and have remained fairly constant over the years:
Maintain a superior financial rating
Respond to customer needs
Operate with a high degree of integrity
Blithe's senior management team develops business strategies on an annual basis to direct the organization toward meeting these goals. Which one of the following strategies would help the organization accomplish its goal of maintaining a superior financial rating?

• A.Acknowledge every claim within twenty-four hours of receiving notification
• B.Achieve an all lines combined ratio of 95% or less
• C.Conduct internal market audits twice a year
• D.Achieve an "exceeded expectations" rating on at least 90% of customer service surveys

James must sell his house quickly to take advantage of a career opportunity and purchase a new house in another state. Which one of the following types of financial risk is James exposed to in this situation?

• A.Interest rate risk
• B.Exchange rate risk
• C.Liquidity risk
• D.Credit risk

Which one of the following quadrants of risk deals with uncertainties associated with the organization's procedures, systems, and policies?

• A.Hazard risk
• B.Strategic risk
• C.Operational risk
• D.Financial risk

Manufacturing Company outsources some component finishing to Company Q. A contract between the two companies says that Company Q will hold harmless and reimburse Manufacturing Company in response to any claim of defect pertaining to the component. In this scenario, Company Q is the

• A.Indentured party
• B.Indemnitor
• C.Surety
• D.Indemnitee

Which one of the following best describes a water damage loss covered under the Commercial Property Causes of Loss Broad Form?

• A.Sprinkler leakage resulting from a fire
• B.Overflow due to back up of sump pump
• C.Mudslide following a rainstorm
• D.Underground water seeping through a foundation