CRIS Risk Financing & Insurance Programs Flashcards
6 cards from real CRIS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CRIS Risk Financing & Insurance Programs flashcards as text
What is an Owner-Controlled Insurance Program (OCIP) in construction?
Answer: A single insurance program procured by the owner covering all contractors on a project
An OCIP is a consolidated insurance program purchased and administered by the project owner to cover all enrolled contractors and subcontractors on a specific construction project.
What distinguishes a Contractor-Controlled Insurance Program (CCIP) from an OCIP?
Answer: The CCIP is procured and administered by the general contractor rather than the owner
In a CCIP, the general contractor—rather than the project owner—purchases and manages the wrap-up insurance program covering enrolled parties.
A construction firm retains the first $500,000 of each loss and purchases excess coverage above that level. This arrangement is best described as:
Answer: A large deductible program
A large deductible program requires the insured to reimburse the insurer for losses up to a specified per-occurrence deductible, shifting primary loss financing to the insured.
Which risk financing technique involves a group of construction firms forming their own insurance company to cover their collective risks?
Answer: Group captive insurance
A group captive is a formal insurance company owned and controlled by multiple unrelated firms that pool their risks to gain underwriting profits and investment income.
Under a retrospective rating plan, the final premium is calculated based on:
Answer: The insured's actual loss experience during the policy period
Retrospective rating adjusts the premium after the policy period ends using the insured's own losses, subject to minimum and maximum premium limits.
A Risk Retention Group (RRG) differs from a standard commercial insurer primarily because:
Answer: RRGs are owned by their members who share a common business classification
Under the Liability Risk Retention Act, an RRG is a member-owned liability insurer restricted to covering members engaged in similar businesses or activities.