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

Risk identification and analysis must precede any risk financing decision so that coverage is properly structured to match actual exposures.

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

Comprehensive coverage pays for non-collision losses including theft, vandalism, fire, and weather damage to the insured vehicle.

Question 3

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

Accepted Answer

Accident rate per million miles driven

Answer

Accidents per million miles normalizes for fleet size and utilization, enabling valid comparisons across organizations of different sizes.

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

Indemnification clauses contractually assign financial responsibility for claims, losses, and legal expenses to the appropriate party.

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

Rear-end collisions are primarily caused by following too closely or inattention, both directly addressed by following-distance training and telematics monitoring.

CAFM - Certified Automotive Fleet Manager Practice Test

CAFM - Certified Automotive Fleet Manager Practice Test

CAFM Risk Management 4