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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Monitoring and Modifying Risk Plans | 5% | |
| Topic 2: Risk Management Principles | 15% | - Analyzing Risk Exposures - Developing Risk Management Plans - Selecting Risk Management Techniques |
| Topic 3: Specialty Lines: Auto, Crime, and Surety Bonds | 10% | |
| Topic 4: Introduction to Commercial Insurance | 10% | |
| Topic 5: Commercial Liability Coverages | 15% | - General Liability - Errors and Omissions |
| Topic 6: Insuring Contractors & Construction Risks | 15% | - Contractors' Exposures - Builders Risk Insurance |
| Topic 7: Commercial Property Coverages | 15% | - Business Interruption Insurance - Policy Wordings and Clauses |
| Topic 8: Insuring Manufacturers & Distributors | 15% |
Question 1
A broker is emailed by a prospect looking to cover his three stores that do not hold title to any goods, and can never be held contractually responsible for those goods. What type of stores are these?
A. Bailor
B. Consignment
C. Freight forwarding
D. Manufacturing
Question 2
The owner of a small bookstore arranges to have a reputable courier deliver an expensive set of antique encyclopedias to the store after it closes. The next morning, he notices several encyclopedias are missing from the set. He reports this situation to his broker, who advises that the loss will be covered under his commercial property broad form if he can provide which type of proof?
A. Declaration under oath confirming it was a fidelity loss
B. Sworn statement from the courier that the set was delivered in its entirety
C. Documented evidence showing the encyclopedias were in the owner's care, custody, and control
D. Evidence that the loss occurred as a result of mysterious disappearance
Question 3
An individual who uses public transit rather than buying a car is managing their risk using which risk management technique?
A. Avoiding risk
B. Separating risk
C. Transferring risk
D. Retaining risk
Question 4
When a broker is focusing on a manufacturing facility's housekeeping regimen and safeguards for a prospect, what is he primarily trying to establish?
A. Whether the prospect is profitable
B. How large the facility is
C. How many expenses the facility has
D. Whether the prospect is a morale hazard
Question 5
How can world events, such as climate change and flood, affect insurance?
A. Deductibles need to be removed from policies.
B. Premiums will become less expensive.
C. Excess levels will become mandatory.
D. Insurers need to modify their terms.
Solutions:
| Question 1 Answer: B | Question 2 Answer: B | Question 3 Answer: A | Question 4 Answer: D | Question 5 Answer: D |
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