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CPCU 520: Practice Exam Questions and Verified Answers, 100% Score Guarantee Pass (Latest 2025)
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In some states, the courts have ruled that injuries sustained as a result of drive-by shootings are covered under the victim's personal auto policy. This is an example of a - Correct Answers ✅legal hazard The state advisory organization has developed a new homeowners form which increases the personal property limits for guns, silverware, jewelry, and boats. Jancy Insurance Company is considering modifying the form for its own use. Which one of the following members of Jancy's staff would be involved in the research and development of this new form? - Correct Answers ✅corporate underwriter An insurer's marketing department is working with the underwriting department to determine what characteristics of middle market businesses result in the most profitable commercial insurance accounts. Which one of the following methods would be most effective in identifying these characteristics? - Correct Answers ✅predictive analysis Corporate underwriters share research of the market responsibilities with actuarial and marketing departments. Research includes an ongoing evaluation of which one of the
following? - Correct Answers ✅optimal product mix in the book of business Which one of the following best describes how underwriters evaluate personal insurance submissions? - Correct Answers ✅they concentrate on identifying any hazards that may exist Which one of the following will draft a manuscript policy or endorsement that is worded to address the specific needs of the insured? - Correct Answers ✅corporate underwriter Patrick had a large homeowners claim pending when his insurer became insolvent and was placed in receivership. Which one of the following correctly describes how Patrick's claim will be handled if the insurer is unable to be rehabilitated? - Correct Answers ✅Patrick's claim will be covered by the state guaranty fund Gulford Insurance Company (Gulford) is a direct writer of commercial insurance in Pennsylvania. The management team is frustrated by the continued lack of success in the more rural western part of the state. It is difficult to penetrate the market without a local presence, but the cost of assigning agents to this
Goshen Insurance is considering offering a new coverage option for its homeowners policy. It is using risk modeling to help with its marketing decisions for the coverage. Risk modeling should help Goshen Insurance answer all of the following questions, EXCEPT: - Correct Answers ✅which customers will experience a loss? An insurance company must have adequate policyholders' surplus if it wishes to - Correct Answers ✅increase its written premium volume Part of the continuous cycle of data mining is preparing the data to eliminate missing or inaccurate information. This process is called - Correct Answers ✅cleaning Bob's Manufacturing has been in business for one year. Which one of the following is true regarding Bob's year-end financial statements? - Correct Answers ✅The beginning balance on the statement of changes in shareholders' equity will show as $0. Which one of the following departments can help marketing and sales by proving to applicants and insureds that the insurer
understands their business operations and associated hazards and is prepared to help them protect their interests? - Correct Answers ✅risk control Which one of the following is a major purpose of the statement of cash flows? - Correct Answers ✅It is used to assess an organization's need for additional financing. The amount of risk retained by a primary insurer under its reinsurance program is influenced by - Correct Answers ✅reinsurer's requirements for retention To determine why an insurance portfolio is not achieving its goals, the portfolio manager must analyze key indicators and policy characteristics. Which one of the following is a corrective action that an insurer might take after such an analysis is completed? - Correct Answers ✅the insurer might change policy language or create additional endorsements Which one of the following is a rapidly growing value chain support function that provides the backbone that supports an insurer's communications, operations, marketing, underwriting,