TRIP Risk Assessment & Mitigation 3

Question 1

When evaluating a motor carrier's risk profile, an underwriter focuses on the 'radius of operation' because it affects:

Accepted Answer

Driver fatigue exposure and jurisdictional legal environments

Answer

Longer radius operations increase driver fatigue risk and expose the carrier to varying state tort environments, both affecting loss potential.

Question 2

A risk manager for a refrigerated carrier wants to reduce spoilage losses. Which control addresses the root cause most directly?

Accepted Answer

Install real-time temperature monitoring with automated alerts

Answer

Real-time temperature monitoring allows immediate corrective action before product is compromised, targeting the cause of spoilage losses.

Question 3

In transportation risk management, 'residual risk' is defined as:

Accepted Answer

The exposure that remains after all mitigation controls are applied

Answer

Residual risk is what remains after risk avoidance, reduction, and transfer measures have been implemented, and must be accepted or further addressed.

Question 4

A transportation company's loss runs show a high frequency of minor backing accidents in its yard. The MOST cost-effective mitigation approach is typically:

Accepted Answer

Installing cameras and implementing a spotter program for yard movements

Answer

Cameras and spotter programs directly reduce backing accident frequency by improving visibility and enforcing safe movement protocols.

Question 5

Which of the following BEST describes risk retention in a transportation context?

Accepted Answer

Paying losses directly from company funds or through a self-insured retention

Answer

Risk retention means a company assumes financial responsibility for its own losses, either formally (SIR) or informally (deductibles, captives).

(TRIP) Transportation Risk and Insurance Professional Practice Test

(TRIP) Transportation Risk and Insurance Professional Practice Test

TRIP Risk Assessment & Mitigation 3