Risk Assessment & Mitigation Flashcards
7 cards from real CRU practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Assessment & Mitigation flashcards as text
A home has a flat roof in a region with heavy annual snowfall. From a risk assessment standpoint, the underwriter's PRIMARY concern is:
Answer: Structural overload from snow and ice accumulation on the flat surface
Flat roofs allow snow and ice to accumulate rather than shed, creating potential structural overload and increased risk of roof collapse or water intrusion from ice damming.
When a residential underwriter applies a 'schedule rating' adjustment, they are:
Answer: Modifying the base premium based on specific physical or operational characteristics of the risk
Schedule rating allows an underwriter to adjust a filed base rate up or down based on the individual characteristics of a risk that deviate from the average risk the rate was designed for.
A residential property has a history of Chinese drywall installation from 2001-2009. The primary risk this presents is:
Answer: Corrosion of electrical wiring and HVAC components from sulfur off-gassing
Chinese drywall from that era emitted hydrogen sulfide gas, which corrodes copper wiring, HVAC coils, and other metal components, creating both safety and significant repair cost exposure.
Which of the following BEST describes the 'replacement cost value' (RCV) method of property valuation?
Answer: The cost to rebuild the property with like kind and quality materials without deducting depreciation
RCV represents the full cost to rebuild a destroyed structure with comparable materials and quality at current prices, without deducting for depreciation.
A homeowner in a hurricane-prone state installs a secondary water resistance (SWR) barrier on their roof. This mitigation primarily reduces losses from:
Answer: Water intrusion when roof covering is damaged or removed by wind
A secondary water resistance barrier (such as a peel-and-stick underlayment) prevents water intrusion into the home when the primary roof covering is compromised by wind, the leading cause of post-hurricane interior damage.
An underwriter discovers that a property had a methamphetamine lab operating in it five years ago. The MOST critical underwriting concern is:
Answer: Residual chemical contamination requiring professional remediation to make the home habitable
Meth lab contamination leaves toxic chemical residues in walls, ventilation systems, and surfaces that require specialized and costly remediation; uninhabitable or insufficiently remediated properties pose major claim and coverage concerns.
A property located in a designated FEMA Special Flood Hazard Area (SFHA) that does NOT carry flood insurance creates which type of residual risk for a mortgage lender?
Answer: Collateral risk if flood damage destroys uninsured property securing the loan
If a property in an SFHA is uninsured and suffers flood damage, the lender's collateral may be destroyed or rendered worthless, creating direct collateral risk on the mortgage loan.