CAFM Risk Management 2 — Questions and Answers
Question 1: Which document formally transfers liability for a fleet vehicle to a third-party vendor performing off-site maintenance?
- Certificate of insurance
- Hold harmless agreement (Correct answer)
- Vehicle title transfer
- Maintenance work order
Correct answer: Hold harmless agreement
A hold harmless agreement contractually shifts liability to the vendor while the vehicle is in their care, custody, and control.
Question 2: A fleet manager discovers that 15% of drivers have undisclosed moving violations from the past year. The BEST corrective action is to:
- Terminate all affected drivers immediately
- Implement a motor vehicle record (MVR) monitoring program with automatic alerts (Correct answer)
- Increase insurance deductibles to offset risk
- Require all drivers to complete a one-time defensive driving course
Correct answer: Implement a motor vehicle record (MVR) monitoring program with automatic alerts
Continuous MVR monitoring catches violations as they occur, enabling timely intervention rather than annual surprises.
Question 3: In fleet risk management, 'frequency' and 'severity' are used to:
- Calculate fuel consumption averages
- Prioritize which risks to address first using a risk matrix (Correct answer)
- Determine preventive maintenance intervals
- Set driver pay scales
Correct answer: Prioritize which risks to address first using a risk matrix
A risk matrix plots frequency (likelihood) against severity (impact) to help fleet managers allocate resources to the highest-priority risks.
Question 4: Which type of fleet insurance coverage pays for damage to the fleet vehicle regardless of who is at fault in an accident?
- Liability coverage
- Collision coverage (Correct answer)
- Uninsured motorist coverage
- Gap coverage
Correct answer: Collision coverage
Collision coverage pays for physical damage to the insured vehicle from an accident, regardless of fault.
Question 5: A fleet manager wants to reduce the financial impact of high-frequency, low-severity claims. The MOST cost-effective strategy is typically to:
- Purchase additional umbrella liability coverage
- Self-insure or retain those losses with a higher deductible (Correct answer)
- Outsource all fleet operations to a third party
- Require drivers to pay for minor damage out of pocket
Correct answer: Self-insure or retain those losses with a higher deductible
High-frequency, low-severity losses are predictable and often cost less to self-retain than to pay premiums for insuring them.
Question 6: Which federal regulation requires employers to verify commercial driver's license (CDL) status and driving history before hiring?
- FMCSA 391.23 — Investigations and inquiries (Correct answer)
- OSHA 1910.178 — Powered industrial trucks
- DOT 49 CFR Part 382 — Drug and alcohol testing
- EPA 40 CFR Part 80 — Fuel standards
Correct answer: FMCSA 391.23 — Investigations and inquiries
FMCSA 49 CFR §391.23 requires motor carriers to investigate each driver applicant's employment history and driving record.
Question 7: Post-accident drug and alcohol testing under DOT regulations must be completed within what timeframe for alcohol?
- 2 hours (with an 8-hour limit for testing) (Correct answer)
- 24 hours
- 48 hours
- 72 hours
Correct answer: 2 hours (with an 8-hour limit for testing)
DOT regulations require post-accident alcohol testing as soon as practicable but within 2 hours; after 8 hours, testing must be abandoned.
CAFM Risk Management 2
Which document formally transfers liability for a fleet vehicle to a third-party vendor performing off-site maintenance?