CISR PERSONAL LINES MISCELLANEOUS EXAM 2023-2024
ACTUAL EXAM 100 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES |AGRADE
What is the Permitted Incidental Occupancies – Residence Premises HO
04 42 used for? – ANSWER- An other structure with an eligible
incidental “business” exposure typically offices, schools, or studios.
Rationale; The Limit of Liability & Description of Other Structure must
be shown in the Schedule.
Under a standard ISO Homeowners policy, what are the two Coverage C
- Personal Property Special Limits of Liability that apply to property
used primarily for business? – ANSWER- 1 – $2,500.00 for personal
property used primarily for “business” while on the “residence
premises.”
Rationale; 2 – $1,500.00 for personal property used primarily for
“business” while away from the “residence premises”
*The limitations do not apply to property used occasionally for
“business.”
What is the Increased Limits on Business Property HO 04 12
endorsement used for? – ANSWER- To increase the Special Limit of
Liability for “business” (personal) property on the “residence premises”
to a maximum of $10,000.00.
What limit is the Special Limit of Liability automatically set to for
property away from the “residence premises” under the Increased Limits
on Business Property HO 04 12? – ANSWER- 60% of the limit of
property on the “residence premises.”
What does the Increased Limits on Business Property HO 04 12 not
provide coverage on? – ANSWER- 1 – “Business” property that pertains
to a “business” actually conducted on the “residence premises.”
2 – “Business” property in storage or held as a sample or for sale or
delivery after a sale.
What is the Permitted Incidental Occupancies – Residence Premises HO
04 42 endorsement used for? – ANSWER- Applies to personal property
used in the “business” described in the Schedule & removes the
$2,500.00 “business” limit for property on the “residence premises” for
furnishings, supplies, and equipment. Property other than furnishings,
supplies, and equipment is still limited to $2,500.00. Samples, inventory,
and items sold but not delivered are limited.
Under Coverage C – Personal Property, what are the three exclusions
that pertain to “business” property? – ANSWER- 1 – Property in an
apartment regularly rented or held for rental to others by an “insured.”
2 – Business data including such data stored in items such as paper
records, computers, and related equipment.
3 – Credit cards, electronic fund transfer cards or access devices used
solely for deposit, withdrawal or transfer of funds.
What is the Landlord’s Furnishings HO 05 46 endorsement used for? –
ANSWER- To increase the Personal Property Limit to a maximum of
$10,000.00 on property regularly rented or held for rental to others by an
insured.
What does the Coverage E – Personal Liability Insuring Agreement
state? – ANSWER- The insurance company will provide coverage for a
claim against an “insured” for damages because of “bodily injury” or
“property damage” caused by an “occurrence” covered by the policy.
What does the Coverage F – Medical Payments to Others Insuring
Agreement state? – ANSWER- The insurance company will pay
necessary medical expenses incurred within three years from the date of
the accident causing “bodily injury.”
What are the exceptions to the “business” exclusion that give back both
personal liability and medical payments to others coverage for some
“business” activities? – ANSWER- 1 – The rental or holding for rental of
an “insured location” if on an occasional basis if used only as a
residence.
download pdf at https://learnexams.com/search/study?query=
CISR RISK MANAGEMENT EXAM 2023-2024 ACTUAL
EXAM 150 QUESTIOS AND CORECT DETAILED
ANSWERS WITH RATIONALES (VERIFIED ANSWERS)
|AGRADE
Risk Financing – ANSWER- The acquisition of internal and external
funds to pay losses at the most favorable cost.
Risk Financing Techniques – ANSWER- Risk Taking appetite, transfer
options, simple transfer options & loss sensitive transfer options
Risk Administration – ANSWER- the process of planning,
implementing, and monitoring the risk management program
Risk Management Information System – ANSWER- an information
system that supports both the risk team and the organization. This type
of software deploys risk management tools in addition to managing risk
data. RMIS can sometimes serve as a customer relationship module, as
well.
Four Components of the Total Cost of Risk – ANSWER- Insurance
Costs, Retained losses & ALAE, Risk Management departmental costs
and Outside service fees
Pure Risk – ANSWER- A chance of loss or no loss, but no chance of
gain.
Speculative Risk – ANSWER- Chance of loss or gain, usually associated
with business or financial risk.
Exposure – ANSWER- a situation, practice, or condition that may lead to
an adverse financial consequence; an activity or asset.
Hazard – ANSWER- a condition that may give rise to a loss from a
given peril; physical, moral, or morale characteristics that increases the
likelihood of a loss.
Peril – ANSWER- the cause of loss, such as fire, wind, hail, slip and fall,
etc.
Severity – ANSWER- the dollar amount of a given loss or the aggregate
dollar amount of all losses for a given period.
Accidents are also evaluated according to how severe the ensuing injury
or property damage may be.
Frequency – ANSWER- the number of losses occurring in a given time
period. Accidents are evaluated according to how often they might
occur.
Incident – ANSWER- an event that disrupts normal activities and may
become a loss (also referred to as a near miss)
Accident – ANSWER- an unplanned event definite as to time and place
that results in injury or damage to a person or property
Occurrence – ANSWER- an accident with the limitation of time
removed (an “accident” that is extended over a period of time rather than
a single observable happening)
Loss – ANSWER- a reduction in the value of assets. Not all losses
become claims
Claim – ANSWER- a demand for payment or an obligation to pay as a
result of a loss
Incurred but not reported (IBNR) – ANSWER- a reserve that must be
established for claims that have already occurred but that have not yet
been reported
Which of the following is not one of the components in the definition of
risk? – ANSWER- Chance or probability of loss
Certainty concerning a loss
Possibility of a variation of outcomes from a given set of circumstances
Difference between expected losses and actual losses
Loss Trending – ANSWER- adjusting historical losses to account for
inflationary trends so that the ultimate value is more current or
meaningful. Loss trend factors are multiplied by actual historical losses
to trend the losses
Loss Development – ANSWER- the difference between the value of a
loss as originally reported and its subsequent evaluation at a later date or
at the time of its final disposition
Expected Losses – ANSWER- Loss projections (“loss pics” or “loss
picks”) based on probability distributions and statistics, frequently
developed using actuarial techniques including trending and
development.
Avoidance – ANSWER- eliminating an activity or exposure which
eliminates chance of loss
Prevention – ANSWER- breaks sequence of events that leads to a loss or
that makes the event less likely
Reduction – ANSWER- reducing the severity or financial impact from
unpreventable losses
download pdf at https://learnexams.com/search/study?query=
CISR ELEMENTS OF RISK MANAGEMENT EXAM
2023-2024 ACTUAL EXAM 150 QUESTIOS AND
CORECT DETAILED ANSWERS WITH RATIONALES
(VERIFIED ANSWERS) |AGRADE
An accident with the limitation of time removed; an “accident” extended
over a period of time rather than a single, observable event – ANSWERoccurrence
A condition or characteristic that may create or increase the likelihood or
severity of a loss – ANSWER- hazard
A response to a focus on the frequency with which events occur –
ANSWER- Prevention
The isolation of an exposure from other exposures, perils, or hazards –
ANSWER- Segregation
Creating asset back-ups – ANSWER- Duplication
A response to a focus on the severity of incidents in an effort to
recognize risk and take action to lower losses – ANSWER- Reduction
The shift of function, exposure, or responsibility of certain liabilities to
another party – ANSWER- Transfer
The elimination of risk – ANSWER- Avoidance
The process of spreading exposures or activities over several locations –
ANSWER- Separation
Risk is defined as a condition of either positive or negative _ arising from a given set of circumstances – ANSWER- uncertainty Perceptions of risk depend upon an individual’s job function or area of expertise. – ANSWER- True A risk manager may define risk as the person or property exposed to a potential loss – ANSWER- True Pure risks include threats to property and people, as well as –
ANSWER- Liability
The result of a pure risk is some _ – ANSWER- Measure of Loss Unlike pure risk, presents the opportunity for gain – ANSWERSpeculative Risk
Speculative risk is associated with or _ risk. – ANSWERBusiness, Financial
A situation, practice, or condition that may lead to an insured’s
susceptibility to adverse financial consequences or loss is called a(n) –
ANSWER- exposure
A _ is a cause of loss – ANSWER- peril A(n) _ is a factor that increases the likelihood that a peril will occur.
- ANSWER- hazard
A(n) _ is an event that may lead to a loss or a claim, or an event that may cause a business interruption – ANSWER- Incident A(n) is always an unexpected and unintentional event that tends
to result in damage or injury. – ANSWER- Accident
An “accident” that occurs over an extended period of time is called a(n)
– ANSWER- occurrence
The number of claims that occur or that an insurer expects to occur
within a given period of time is labeled – ANSWER- frequency
The dollar amount inflicted by a given loss or catastrophe, or the
aggregate dollar amount of all losses for a given period of time, is
defined by the word __ – ANSWER- severity
download pdf at https://learnexams.com/search/study?query=
CISR AGENCY OPERATIONS EXAM 2023-2024
ACTUAL EXAM 300 QUESTIOS AND CORECT
DETAILED ANSWERS WITH RATIONALES (VERIFIED
ANSWERS) |AGRADE
A client calls you to ask for a re-quote on an insurance policy. The client
is frustrated and feels like he pays too much for the coverage he has.
Listening to him, you avoid thinking about what you want to say next
until your customer is done speaking. Refraining from concentrating on
what you want to say next is an example of taking steps towards
improving your speaking skills.
False
1 MULTIPLE CHOICE OPTION
Sylvia is an insurance agent and wants to broaden her network. If done
correctly, it would be beneficial for Sylvia to market her business
through various social media platforms.
True
1 MULTIPLE CHOICE OPTION
Select the example below that illustrates non-verbal communication.
Staring-down your colleague after he spoils a surprise office party
2 MULTIPLE CHOICE OPTIONS
When proofing communication, there is a three-step process that should
be followed. Identify the example below that is NOT part of this
process.
Alicia opens her email and begins to compose her message.
3 MULTIPLE CHOICE OPTIONS
Each of the following are examples that should be included in an
insurance agency’s social media or internet use policy, EXCEPT:
Allotted usage time
3 MULTIPLE CHOICE OPTIONS
Select the example that best showcases an effort to improve non-verbal
communication.
Making physical contact
3 MULTIPLE CHOICE OPTIONS
During a video call, Murphy finds what the speaker is saying to be very
funny. To show his support, Murphy drops in a GIF or an animated
image of a cartoon character laughing and clapping. This an example of
which of the four main forms of communication?
Visual
3 MULTIPLE CHOICE OPTIONS
The following are items that need to be accomplished to bring in new
business, EXCEPT:
Submit endorsement request
3 MULTIPLE CHOICE OPTIONS
Iris wants to grow her insurance agency by writing new business. She
seeks to do so by looking at her existing client base and promoting
products that are related or complementary to the existing coverage they
have, or that other departments within the agency offer. This is an
example of securing new business through:
Account rounding
3 MULTIPLE CHOICE OPTIONS
The quality of the product and pricing you will have available to present
to the prospect is dependent on the quality of your submission and the
markets selected. Each of the following are examples of when insurance
company underwriters are more receptive, EXCEPT:
A misrepresentation is made on the application.
3 MULTIPLE CHOICE OPTIONS
Sydney is reviewing the business auto application on one of her
accounts. Since it is missing some information the underwriter will need
to determine renewal coverage and pricing, Sydney should contact:
Bob Smith, the named insured
3 MULTIPLE CHOICE OPTIONS
When it comes to proposals to customers, it is safe to assume that the
more complex the account, the more personalized, detailed, and specific
the proposal ends up being.
True
1 MULTIPLE CHOICE OPTION
Credit scoring is widely used as a part of the underwriting process.
True
1 MULTIPLE CHOICE OPTION
The renewal process should begin 30 days from policy expiration date.
False
1 MULTIPLE CHOICE OPTION