CAFM Risk Management 2

Question 1

Which document formally transfers liability for a fleet vehicle to a third-party vendor performing off-site maintenance?

Accepted Answer

Hold harmless agreement

Answer

A hold harmless agreement contractually shifts liability to the vendor while the vehicle is in their care, custody, and control.

Question 2

A fleet manager discovers that 15% of drivers have undisclosed moving violations from the past year. The BEST corrective action is to:

Accepted Answer

Implement a motor vehicle record (MVR) monitoring program with automatic alerts

Answer

Continuous MVR monitoring catches violations as they occur, enabling timely intervention rather than annual surprises.

Question 3

In fleet risk management, 'frequency' and 'severity' are used to:

Accepted Answer

Prioritize which risks to address first using a risk matrix

Answer

A risk matrix plots frequency (likelihood) against severity (impact) to help fleet managers allocate resources to the highest-priority risks.

Question 4

Which type of fleet insurance coverage pays for damage to the fleet vehicle regardless of who is at fault in an accident?

Accepted Answer

Collision coverage

Answer

Collision coverage pays for physical damage to the insured vehicle from an accident, regardless of fault.

Question 5

A fleet manager wants to reduce the financial impact of high-frequency, low-severity claims. The MOST cost-effective strategy is typically to:

Accepted Answer

Self-insure or retain those losses with a higher deductible

Answer

High-frequency, low-severity losses are predictable and often cost less to self-retain than to pay premiums for insuring them.

CAFM - Certified Automotive Fleet Manager Practice Test