1.5 Describe the Purpose of Cyber Risk Insurance 350-201 Practice Questions (Page 3)

Questions 11–15

1. 11foundation · easy

   Which component of a cyber insurance policy specifies the maximum amount the insurer will pay for a covered claim?

   • ADeductible
   • BExclusion
   • CPolicy limit
   • DPremium
   Reveal Solution Discussion Select an answer first
2. 12application · medium

   A company is reviewing its cyber insurance policy renewal. The policy has a $1 million limit, a $50,000 deductible, and an exclusion for losses due to failure to maintain 'reasonable security controls.' The company recently disabled MFA for administrative accounts to reduce user friction. What is the most likely consequence if a breach occurs through a compromised admin account?

   • AThe deductible will increase to $100,000
   • BThe claim will be paid up to the $1 million limit minus the deductible
   • CThe claim may be denied due to the exclusion for failure to maintain reasonable security controls
   • DThe insurer will cover the claim but require the company to reimburse the deductible
   Reveal Solution Discussion Select an answer first
4. 13application · medium

   A company is applying for cyber risk insurance. The insurer's application asks detailed questions about the company's backup strategy, incident response plan, and employee security training. The company's security team is concerned that answering honestly will reveal weaknesses and lead to higher premiums. What is the best way for the company to approach this application?

   • ADelay the application until all weaknesses are fully remediated, even if it takes years.
   • BWithhold information about weaknesses to keep premiums low and avoid scrutiny.
   • CProvide accurate information and use the application as a gap analysis to improve security controls.
   • DAnswer optimistically to present a better security posture than actually exists.
   Reveal Solution Discussion Select an answer first
5. 14foundation · easy

   Which of the following best describes how cyber risk insurance can improve an organization's incident response readiness?

   • AIt replaces the organization's internal security team with the insurer's staff
   • BIt may require the organization to have an incident response plan and provide access to approved vendors
   • CIt guarantees that the organization will never experience a security incident
   • DIt automatically pays for any security improvement the organization wants to make
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6. 15foundation · easy

   Which of the following is an example of information an insurer would typically request during cyber insurance underwriting?

   • AThe CEO's favorite sports team
   • BDetails about the organization's multi-factor authentication (MFA) usage
   • CThe number of parking spaces in the headquarters garage
   • DThe organization's preferred office furniture vendor
   Reveal Solution Discussion Select an answer first