GPCU 500 EXAM AND PRACTICE EXAM NEWEST

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GPCU 500 EXAM AND PRACTICE EXAM NEWEST

ACTUAL EXAM 450 QUESTIONS AND CORREC

DETAILED ANSWERS (VERIFIED ANSWERS

|ALREADY GRADED A+

Emerald Industries has just invested a large sum in new, highly- sophisticated computer equipment and building renovations. Emerald installed state-of-the-art smoke detection devices throughout the facility.Emerald's state-of-the-art smoke detection devices are an example of

• Loss prevention.
• Avoidance.
• Loss reduction.
• Duplication. - ANSWER- C. Loss reduction.

Taylor owns Paoli Hardware, a mid-sized hardware store with 25 employees. Paoli Hardware has won best local hardware store 3 years in a row. Taylor would like to expand operations and has undertaken a SWOT analysis.His most dedicated customers are generally over 40 years old and engaged in small house projects, but his biggest revenue generator continues to be the sale of lumber. He would like to obtain more commercial customers and increase lumber sales. One of the major complaints Taylor hears from his customers is the difficulty finding local contractors. So, he is considering hiring a general contractor at the store who would also make house calls to assist customers. This will 1 / 4

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allow him to bill for labor and increase the sale of his products, but he is concerned it may increase his insurance claims and premiums. One of the younger store employees suggested they create a website to expand sales to on-line purchas - ANSWER- c. Increase in competition

Home Appliance Company has decided to change its production method. Previously, small teams of workers assembled washers, dryers, and dishwashers. Under the new production method, an assembly-line will be used, with some functions performed by robotics. Before making the change, Home Appliance Company has created a team of experts from company personnel to identify all of the risks inherent in the new production method and to recommend measures to address these risks.

The team will assemble in a facilitated workshop and follow these steps:

Divide the production method into components Review each component to identify risk Identify causes and potential outcomes for each risk Develop a solution for each risk.This team approach is risk identification is called a

• Hazard and operability (HAZOP) study.
• Delphi technique.
• SWOT (strengths, weaknesses, opportunities, threats) analysis.
• Facilitated workshop. - ANSWER- A. Hazard and operability

(HAZOP) study.

Jean is a director on the board of an apparel promotional company.Towards the company, Jean owes a duty of 2 / 4

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• Profitability.
• Divided loyalty.
• Undivided time.
• Undivided loyalty. - ANSWER- D. Undivided loyalty.

Which one of the following is a major benefit that smart insurance contracts can provide to insurance customers?

• Smart contracts can render a risk completely preventable.
• Smart contracts can significantly increase the speed of premium

payments.

• Smart contracts can provide broader coverage at a lower cost.
• Smart contracts can dramatically increase the speed of loss payments.
• ANSWER- D. Smart contracts can dramatically increase the speed of

loss payments.

Brendan is a new risk manager at a Shelton Manufacturing in North Carolina. Because the company has never experienced any consequences from a hurricane, the previous risk manager never really analyzed the risks associated with such an event. Brendan feels that a hurricane could trigger multiple far-reaching consequences and that the risk requires a thorough analysis. Due to Shelton Manufacturing's lack of historical data Brendan has decided to use a structured process that incorporates expert opinions into the probability estimations. Which one of the following types of risk assessment is Brendan using?

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• Predictive technique
• Risk management technique
• Risk control technique
• Qualitative analysis - ANSWER- A. Predictive technique

After being promoted to a supervisory position, Henry decided that he needed to work on becoming an active listener. All of the following are

elements of active listening, EXCEPT:

• Suspension of judgement
• Attention
• Response
• Introduction of new ideas - ANSWER- D. Introduction of new ideas

One category of operational risk includes procedures and practices organizations use to conduct their business activities. This category is

• Technological risk.
• Systems risk.
• Business complexity risk.
• Process risk. - ANSWER- D. Process risk.

Vandenberg Company retains workers compensation medical expenses.The risk manager ran a regression using workers compensation medical

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