CAFM Risk Management 4

Question 1

When developing a fleet risk management program, which step should occur BEFORE purchasing insurance?

Accepted Answer

Identifying, analyzing, and evaluating all fleet exposures

Answer

Selecting an insurance broker

Answer

Negotiating deductible levels with underwriters

Answer

Reviewing prior-year premium invoices

Question 2

A fleet vehicle is stolen and later recovered with significant damage. Which coverage would pay for repairs to the organization's vehicle?

Accepted Answer

Comprehensive coverage

Answer

Liability coverage

Answer

Collision coverage

Answer

Uninsured motorist property damage

Question 3

Which metric is MOST useful for benchmarking fleet safety performance against industry peers?

Accepted Answer

Accident rate per million miles driven

Answer

Total fuel cost per vehicle

Answer

Average vehicle age in the fleet

Answer

Preventive maintenance compliance percentage

Question 4

What is the primary purpose of an indemnification clause in a fleet vendor contract?

Accepted Answer

To allocate responsibility for losses and legal costs between the fleet and the vendor

Answer

To specify payment terms for fleet services

Answer

To define the vehicle maintenance schedule

Answer

To establish fuel reimbursement rates

Question 5

A fleet manager notices that rear-end collisions represent 40% of all accidents in the fleet. The risk control tactic MOST likely to reduce this specific type of loss is:

Accepted Answer

Mandating following-distance training and monitoring via telematics

Answer

Implementing a no-personal-use vehicle policy

Answer

Increasing comprehensive insurance deductibles

Answer

Restricting vehicle access to drivers over age 25

Question 6

Which document should a fleet manager require from every contractor who operates company vehicles on behalf of the organization?

Accepted Answer

Certificate of liability insurance naming the company as an additional insured

Answer

Personal auto insurance declarations page

Answer

Vehicle registration copy

Answer

DMV driving record printout

Question 7

Under the Americans with Disabilities Act (ADA), what obligation does a fleet manager have when a driver requests an accommodation due to a medical condition?

Accepted Answer

Engage in an interactive process to determine whether a reasonable accommodation exists that allows the driver to safely perform essential functions

Answer

No obligation if the driver cannot meet all essential job functions

Answer

Immediately reassign the driver to administrative duties

Answer

Require the driver to obtain private disability insurance before returning to duty