Free The Institutes CPCU-500 Exam Questions

The commercial lines unit at ABC Insurance has been given several objectives as a result of senior managements strategic planning discussions. ABC wants to become a leader in professional liability insurance, offering not only specifically tailored insurance products, but also consulting services to assist insureds in reducing their professional liability loss exposures. The goal is to become recognized as a specialist insurer and to be able to charge appropriately higher rates for the coverage. This is an example of which one of the following business-level strategies? 

Foster Plumbing dug a hole in the street to run a water pipe from the main line to a new home. Foster planned to fill in the hole the next day. No barriers were erected, and Joe drove his car into the hole. Joe was injured and his car was destroyed. Joe sued Foster for damages. Fosters liability to Joe arises out of Fosters 

An earthquake destroyed the facilities of the main supplier of mufflers for an auto manufacturer. This is an example of which one of the following types of operational risk for the auto manufacturer? 

It is important for insurance professionals to be able to communicate complicated ideas. Writing in a clear and concise manner is crucial to the professional success and financial health of an insurer. Which one of the following situations could impose a financial burden on an insurance professional due to improper communication skills? 

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?