CAFM Risk Management 3

Question 1

A telematics system flags a driver with a hard-braking score in the bottom 10% of the fleet. From a risk management perspective, the FIRST step should be:

Accepted Answer

Conduct a coaching session using the telematics data as evidence

Answer

Immediately reassign the driver to non-driving duties

Answer

Increase the vehicle's comprehensive insurance coverage

Answer

Install additional cameras in the vehicle

Question 2

Which risk transfer mechanism allows a fleet to share large, unpredictable losses with other organizations in the same industry?

Accepted Answer

Risk retention group

Answer

Captive insurance company

Answer

Excess liability policy

Answer

Self-insurance fund

Question 3

What is the purpose of an 'experience modification rate' (EMR or X-Mod) in fleet risk management?

Accepted Answer

It adjusts workers' compensation premiums based on actual loss history versus expected losses

Answer

It measures fuel economy relative to fleet average

Answer

It calculates the depreciation rate for fleet vehicles

Answer

It scores driver behavior on a 100-point scale

Question 4

A fleet manager is evaluating whether to implement a dash cam program. Which risk management benefit is MOST directly achieved?

Accepted Answer

Faster and more accurate claims resolution with visual evidence

Answer

Reduced vehicle depreciation rates

Answer

Lower fuel costs through route optimization

Answer

Automatic compliance with FMCSA hours-of-service rules

Question 5

Under a fleet safety program, what does 'near-miss reporting' primarily help the organization accomplish?

Accepted Answer

Identify hazards and correct conditions before they result in an actual loss

Answer

Satisfy OSHA recordkeeping requirements for vehicle incidents

Answer

Calculate driver performance bonuses accurately

Answer

Determine the correct deductible level for auto liability insurance

Question 6

Which factor most directly causes an organization's auto liability insurance premium to increase at renewal?

Accepted Answer

An adverse loss ratio from the prior policy period

Answer

Increasing the number of vehicles in the fleet

Answer

Adding collision coverage to previously liability-only vehicles

Answer

Implementing a new fleet telematics system

Question 7

A driver is involved in a preventable accident while making a personal stop during a business trip. The fleet manager's liability exposure is BEST described as:

Accepted Answer

Potentially full liability under the 'coming and going' rule if the detour was minor

Answer

No liability because the stop was personal

Answer

Liability depends solely on whether the driver was on a company-owned vehicle

Answer

Full liability because the employer is always responsible during business travel