The Institutes Becoming a Leader in Risk Management and Insurance (CPCU-500) Free Practice Test
Question 1
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
Correct Answer: B
Explanation: Only visible for TestSimulate members. You can sign-up / login (it's free).
Question 2
John was injured when a fire started because of faulty work recently completed by a contractor. From the commercial liability standpoint of the contractor, this is an example of
Correct Answer: D
Explanation: Only visible for TestSimulate members. You can sign-up / login (it's free).
Question 3
Jane grew up in New Hampshire. She recently graduated from college, moved into an apartment in Pennsylvania, and started a new job. Jane would like her own personal property and liability insurance protection. Which one of the following Insurance Services Office homeowners forms is most appropriate for Jane?
Correct Answer: D
Explanation: Only visible for TestSimulate members. You can sign-up / login (it's free).
Question 4
Michael began his career in the insurance industry as a claims representative. He is an intelligent and hard- working individual with a goal of advancing his career within the industry. As his manager, which one of the following would you recommend that Michael do to help propel him to be a future insurance industry leader?
Correct Answer: D
Explanation: Only visible for TestSimulate members. You can sign-up / login (it's free).
Question 5
Daniel was asked to give a presentation to employees on the topic of cyber risk. While preparing for the presentation, he thought about the most important thing that he wanted employees to take away from the presentation. Which one of the following steps in the communication process has Daniel completed?
Correct Answer: C
Explanation: Only visible for TestSimulate members. You can sign-up / login (it's free).
Question 6
George is CFO of XYZ Medical and has just learned that the company is about to announce a major breach into its customer database. Two days before the proposed announcement date, George sells a 10,000 share block of his stock in XYZ Medical. After the hacking is announced, the share price falls by 27%. George's actions likely constitute
Correct Answer: D
Explanation: Only visible for TestSimulate members. You can sign-up / login (it's free).