CPCU 500 - independent subject foundations cheat sheet

Read the actual coverage, limits, exclusions and duties.

Insurance transfers specified financial consequences, not the physical hazard itself.

Claims calculations require an explicit deductible and limit convention.

Reinsurance does not automatically release the original insurer from its policyholder obligation.

Expected loss is an average under a stated model, not a maximum.

VaR does not bound losses or fully describe the tail.

Funding and market liquidity can deteriorate together.

Validate models and monitor assumptions, data and intended use.

A business model connects customer value, delivery, resources, costs and revenue; its assumptions require evidence.

Porter's generic strategies require a clear basis for competitive advantage.

Expected value weights outcomes by probability but ignores risk attitude.

Suitability, acceptability and feasibility structure strategy evaluation.

Implementation fails when culture, structure and resources are misaligned.

Turnover uses average employees; absenteeism uses possible working days.

Job description = duties; person specification = candidate attributes.

Herzberg separates hygiene factors from motivators; pay alone is hygiene.

Leadership style should be matched to task, workforce skill and time pressure.

Redundancy and dismissal have different legal and motivational implications.