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NR. 17 Which one of the following statements is correct about the enterprise-wide risk management process?

NR. 18 Gaining a holistic perspective is an important step in fostering collaboration. Gaining a holistic perspective requires

NR. 19 Gulford’s is a large retail store chain with locations throughout the U.S. The operations are divided into three different profit centers. Each center has a separate executive-level position and management team. The profit centers are based on type of product and include apparel, electronics, and grocery. Which one of the following types of organizational structure has Gulford selected?

NR. 20 George is CFO of XYZ Medical and has just learned that the company is about to announce a major breach into its customer database. Two days before the proposed announcement date, George sells a 10,000 share block of his stock in XYZ Medical. After the hacking is announced, the share price falls by 27%. George’s actions likely constitute

NR. 21 Risks that arise from property, liability, or personnel loss exposures and are generally the subject of insurance are known as

NR. 22 Which one of the following best describes a water damage loss covered under the Commercial Property Causes of Loss Broad Form?

NR. 23 Directors and Officers liability loss exposures arise out of directors’ and officers’ legal responsibilities and duties. Of the major responsibilities of corporate directors and officers listed below, which one of the following is the most important in analyzing D&O liability loss exposures? The duty to

NR. 24 The commercial lines unit at ABC Insurance has been given several objectives as a result of senior management’s 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?

NR. 25 Manufacturing Company outsources some component finishing to Company Q. A contract between the two companies says that Company Q will hold harmless and reimburse Manufacturing Company in response to any claim of defect pertaining to the component. In this scenario, Company Q is the

NR. 26 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. Foster’s liability to Joe arises out of Foster’s

NR. 27 In order for an insurer to cover a bodily injury or property damage claim under Section II Liability of the ISO Businessowners Policy, all of the following conditions must be met, EXCEPT:

NR. 28 John works for J & J Plumbing. One day while driving a company truck from one customer’s house to another customer, he went through a stop sign and struck another vehicle. John only suffered a minor injury, but the driver of the other vehicle was seriously injured and the car was totaled. Which one of the following J
& J Plumbing commercial liability coverages would cover the other driver’s medical expenses and the damage to the vehicle?

NR. 29 An individual who purchases an apartment building to rent to tenants faces both pure risk and speculative risk.
Which one of the following is a pure risk?

NR. 30 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. Foster’s liability to Joe arises out of Foster’s

NR. 31 Courtland Incorporated owns a $1 million office building which it insures under a Building and Personal Property Coverage Form with an 80 percent coinsurance provision. In an effort to reduce the premium, and assuming that it would never have a total loss, Courtland Incorporated decided to insure the building for
$600,000. Ignoring any deductible that may apply, how much would the BPP insurer pay if the building suffered a covered loss of $100,000?

NR. 32 Thomas is the commercial lines underwriter for Shelton Manufacturing. Critical thinking helped him suggest that the insured consider a blanket business personal property limit for its three locations. This critical thinking will help Thomas to

NR. 33 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?

NR. 34 Which one of the following quadrants of risk deals with uncertainties associated with the organization’s procedures, systems, and policies?

NR. 35 Improving assessment and underwriting for concentrations of risk, recalibrating predictive models to add more weight to recent events, and advocating for building code updates to enhance property resiliency are some of the insurance industry’s responses to which one of the following major challenges?