Test Prep Test Prep Certifications CGFM Questions & Answers

• Question 61:

  Coverage for losses due to employee dishonesty is _________ type of coverage for crimes in bond issues.

  A. On-Promise

  B. Fidelity

  C. Off-Promise

  D. Forgery

  Correct Answer: B

• Question 62:

  Perils, losses, property, source of liability, and people, Indemnity, Exclusions, Definitions and conditions are:

  A. Insurance declarations

  B. Insuring agreements

  C. Insurance policies

  D. None of these

  Correct Answer: B

• Question 63:

  __________________ generally protects the organization, its employees, governing board members, other board members, and volunteer from third-party claims alleging property damage, bodily injury, and personal injury.

  A. Commercial General Liability (CGL)

  B. Police professional Liability

  C. Excess Liability

  D. All of the above

  Correct Answer: A

• Question 64:

  A way to transfer risks is by joining a pool. Pools like those offered by leagues of municipalities and associations of country commissioners provide an array of services, including:

  A. Safety environment

  B. Contract review

  C. Claims and underwriting services

  D. All of these

  Correct Answer: D

• Question 65:

  There are about 420 self-insurance pools regarding risk transfer, in America, many of which belong to the:

  A. Association of Governmental Risk Pools (AGRIP)

  B. Risk and Insurance Management Society (RIMS)

  C. Insurance management Institute of America

  D. All of these

  Correct Answer: A

• Question 66:

  "Don't risk a lot for a little." This principle should be followed during:

  A. Charging losses

  B. Using insurance deductibles

  C. Small and infrequent losses

  D. Assumption of risk

  Correct Answer: D

• Question 67:

  Risks are not assumed should, if possible, be transferred either by a ______________.

  A. Hold-harmless contract clause

  B. Waiver of subrogation

  C. Both of these

  D. None of these

  Correct Answer: C

• Question 68:

  If a building originally valued at $160,000 appreciates to $300,000 and is insured by an 80% coinsurance clause, then 80% of the value ($320,000) must be insured. If the building is still insured at only $160,000 and a $100,000 loss occurs, the loss would be:

  A. $ 40,000

  B. $50,000

  C. $44,000

  D. $60,000

  Correct Answer: A

• Question 69:

  A building with a replacement value of $1,000,000 has depreciated by 50%. What amount of risk has been unwittingly assumed?

  A. $500,000

  B. $550,000

  C. $600,000

  D. None of these

  Correct Answer: A

• Question 70:

  If a government or nonprofit annually collects $ 2 million, what is the per occurrence deductibles?

  A. 2,200

  B. 2,000

  C. 2,300

  D. None of these

  Correct Answer: B