CPCU 520 Simulated Exam Questions and

CPCU 520 Simulated Exam Questions and Answers (Solved Papers) Which one of the following is a part of the solvency core

principle of exiting the market and receivership? Select one:

• The reported financial results are assessed through the

financial examination process and a determination is made of the insurer's compliance with legal requirements.

• The regulatory authority takes preventative and corrective

measures to reduce the impact of risks identified during on- site regulatory monitoring.

• Insurers are required to maintain reserves and capital at all

times and in such forms so as to provide an adequate margin of safety.

• Solvency is defined and a receivership scheme established

to ensure the payment of insured obligations of insolvent insurers subject to appropriate restrictions and limitations. - Correct Answers ✅D Benjamin has his home insured with Westfork Mutual under an HO-3 policy for $100,000. He is the named insured on the

policy. There are three other residents of the home: Maria,

Benjamin's mother; Daniel, his nephew; and Cian, a family friend. An accidental fire causes damage to the home and to personal property of all four occupants. Benjamin reports the loss to Westfork and Fatima, a claim representative, is assigned the claim. Which one of the following will most likely be Fatima's principal concern when analyzing coverage for the loss?

Select one: 1 / 2

CPCU 520 Simulated Exam Questions and Answers (Solved Papers)

• Whether Maria's, Daniel's, and Cian's property would be

covered

• Whether fire is a covered cause of loss under the H0-3

policy

• Whether the limit of insurance is sufficient to cover the

damage

• Whether any policy exclusions preclude coverage for the

loss - Correct Answers ✅A Premium auditor Ralph became concerned about an increase in hazard from the insured's chemical operations. In an audit Ralph discovered the plant had added a product that could greatly increase the products liability exposure. Due to the misclassification of the current loss exposures, the information discovered by Ralph is most useful to which one of the following insurer functions?

• Risk control
• Marketing and sales
• Claims
• Underwriting - Correct Answers ✅Underwriting

All of the following are principal sources of underwriting

information, EXCEPT:

Select one:

• Financial rating services
• Underwriting authority reports
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