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Question 161
If your property Insurance has Actual Cash Valuation (ACV) clause, your damaged property will be compensated based on:
Correct Answer: A
This is called the Actual Cash Value (ACV) or Actual Cost Valuation (ACV)
All of the other answers were only detractors. Below you have an explanation of the different types
of valuation you could use. It is VERY important for you to validate with your insurer which one
applies to you as you could have some very surprising finding the day you have a disaster that
takes place.
Replacement Cost
Property replacement cost insurance promises to replace old with new. Generally, replacement of
a building must be done on the same premises and used for the same purpose, using materials
comparable to the quality of the materials in the damaged or destroyed property.
There are some other limitations to this promise. For example, the cost of repairs or replacement
for buildings
doesn't include the increased cost associated with building codes or other laws controlling how
buildings must be built today. An endorsement adding coverage for the operation of Building
Codes and the increased costs associated with complying with them is available separately -
usually for additional premium.
In addition, some insurance underwriters will only cover certain property on a depreciated value
(actual cash value - ACV) basis even when attached to the building. This includes awnings and
floor coverings, appliances for refrigerating, ventilating, cooking, dishwashing, and laundering.
Depreciated value also applies to outdoor equipment or furniture.
Actual Cash Value (ACV)
The ACV is the default valuation clause for commercial property insurance. It is also known as
depreciated value, but this is not the same as accounting depreciated value. The actual cash value is determined by first calculating the replacement value of the property. The next step involves estimating the amount to be subtracted, which reflects the building's age, wear, and tear.
This amount deducted from the replacement value is known as depreciation. The amount of depreciation is reduced by inflation (increased cost of replacing the property); regular maintenance; and repair (new roofs, new electrical systems, etc.) because these factors reduce the effective age of the buildings.
The amount of depreciation applicable is somewhat subjective and certainly subject to negotiation. In fact, there is often disagreement and a degree of uncertainty over the amount of depreciation applicable to a particular building.
Given this reality, property owners should not leave the determination of depreciation to chance or wait until suffering a property loss to be concerned about it. Every three to five years, property owners should obtain a professional appraisal of the replacement value and depreciated value of the buildings.
The ACV valuation is an option for directors to consider when certain buildings are in need of repair, or budget constraints prevent insuring all of your facilities on a replacement cost basis. There are other valuation options for property owners to consider as well.
Functional Replacement Cost This valuation method has been available for some time but has not been widely used. It is beginning to show up on property insurance policies imposed by underwriters with concerns about older, buildings. It can also be used for buildings, which are functionally obsolete.
This method provides for the replacement of a building with similar property that performs the same function, using less costly material. The endorsement includes coverage for building codes automatically.
In the event of a loss, the insurance company pays the smallest of four payment options.
1.In the event of a total loss, the insurer could pay the limit of insurance on the building or the cost to replace the building on the same (or different) site with a payment that is "functionally equivalent."
2.In the event of a partial loss, the insurance company could pay the cost to repair or replace the damaged portion in the same architectural style with less costly material (if available).
3.The insurance company could also pay the amount actually spent to demolish the undamaged portion of the building and clear the site if necessary.
4.The fourth payment option is to pay the amount actually spent to repair, or replace the building using less costly materials, if available (Hillman and McCracken 1997).
Unlike the replacement cost valuation method, which excluded certain fixtures and personal property used to service the premises, this endorsement provides functional replacement cost coverage for these items (awnings, floor coverings, appliances, etc.) (Hillman nd McCracken 1997).
As in the standard replacement cost value option, the insured can elect not to repair or replace the property. Under these circumstances the company pays the smallest of the following:
1.The Limit of Liability
2.The "market value" (not including the value of the land) at the time of the loss. The endorsement defines "market value" as the price which the property might be expected to realize if ffered for sale in fair market."
3.A modified form of ACV (the amount to repair or replace on he same site with less costly material and in the same architectural tyle, less depreciation) (Hillman and McCracken 1997).
Agreed Value or Agreed Amount Agreed value or agreed amount is not a valuation method. Instead, his term refers to a waiver of the coinsurance clause in the property insurance policy. Availability of this coverage feature varies among insurers but, it is usually available only when the underwriter has proof (an independent appraisal, or compliance with an insurance company valuation model) of the value of your property. When do I get paid?
Generally, the insurance company will not pay a replacement cost settlement until the property that was damaged or destroyed is actually repaired or replaced as soon as reasonably possible after the loss.
Under no circumstances will the insurance company pay more than your limit of insurance or more than the actual amount you spend to repair or replace the damaged property if this amount is less than the limit of insurance.
Replacement cost insurance terms give the insured the option of settling the loss on an ACV basis. This option may be exercised if you don't plan to replace the building or if you are faced with a significant coinsurance penalty on a replacement cost settlement.
References: http://www.schirickinsurance.com/resources/value2005.pdf and TIPTON, Harold F. & KRAUSE, MICKI Information Security Management Handbook, 4th Edition, Volume 1 Property Insurance overview, Page 587.
All of the other answers were only detractors. Below you have an explanation of the different types
of valuation you could use. It is VERY important for you to validate with your insurer which one
applies to you as you could have some very surprising finding the day you have a disaster that
takes place.
Replacement Cost
Property replacement cost insurance promises to replace old with new. Generally, replacement of
a building must be done on the same premises and used for the same purpose, using materials
comparable to the quality of the materials in the damaged or destroyed property.
There are some other limitations to this promise. For example, the cost of repairs or replacement
for buildings
doesn't include the increased cost associated with building codes or other laws controlling how
buildings must be built today. An endorsement adding coverage for the operation of Building
Codes and the increased costs associated with complying with them is available separately -
usually for additional premium.
In addition, some insurance underwriters will only cover certain property on a depreciated value
(actual cash value - ACV) basis even when attached to the building. This includes awnings and
floor coverings, appliances for refrigerating, ventilating, cooking, dishwashing, and laundering.
Depreciated value also applies to outdoor equipment or furniture.
Actual Cash Value (ACV)
The ACV is the default valuation clause for commercial property insurance. It is also known as
depreciated value, but this is not the same as accounting depreciated value. The actual cash value is determined by first calculating the replacement value of the property. The next step involves estimating the amount to be subtracted, which reflects the building's age, wear, and tear.
This amount deducted from the replacement value is known as depreciation. The amount of depreciation is reduced by inflation (increased cost of replacing the property); regular maintenance; and repair (new roofs, new electrical systems, etc.) because these factors reduce the effective age of the buildings.
The amount of depreciation applicable is somewhat subjective and certainly subject to negotiation. In fact, there is often disagreement and a degree of uncertainty over the amount of depreciation applicable to a particular building.
Given this reality, property owners should not leave the determination of depreciation to chance or wait until suffering a property loss to be concerned about it. Every three to five years, property owners should obtain a professional appraisal of the replacement value and depreciated value of the buildings.
The ACV valuation is an option for directors to consider when certain buildings are in need of repair, or budget constraints prevent insuring all of your facilities on a replacement cost basis. There are other valuation options for property owners to consider as well.
Functional Replacement Cost This valuation method has been available for some time but has not been widely used. It is beginning to show up on property insurance policies imposed by underwriters with concerns about older, buildings. It can also be used for buildings, which are functionally obsolete.
This method provides for the replacement of a building with similar property that performs the same function, using less costly material. The endorsement includes coverage for building codes automatically.
In the event of a loss, the insurance company pays the smallest of four payment options.
1.In the event of a total loss, the insurer could pay the limit of insurance on the building or the cost to replace the building on the same (or different) site with a payment that is "functionally equivalent."
2.In the event of a partial loss, the insurance company could pay the cost to repair or replace the damaged portion in the same architectural style with less costly material (if available).
3.The insurance company could also pay the amount actually spent to demolish the undamaged portion of the building and clear the site if necessary.
4.The fourth payment option is to pay the amount actually spent to repair, or replace the building using less costly materials, if available (Hillman and McCracken 1997).
Unlike the replacement cost valuation method, which excluded certain fixtures and personal property used to service the premises, this endorsement provides functional replacement cost coverage for these items (awnings, floor coverings, appliances, etc.) (Hillman nd McCracken 1997).
As in the standard replacement cost value option, the insured can elect not to repair or replace the property. Under these circumstances the company pays the smallest of the following:
1.The Limit of Liability
2.The "market value" (not including the value of the land) at the time of the loss. The endorsement defines "market value" as the price which the property might be expected to realize if ffered for sale in fair market."
3.A modified form of ACV (the amount to repair or replace on he same site with less costly material and in the same architectural tyle, less depreciation) (Hillman and McCracken 1997).
Agreed Value or Agreed Amount Agreed value or agreed amount is not a valuation method. Instead, his term refers to a waiver of the coinsurance clause in the property insurance policy. Availability of this coverage feature varies among insurers but, it is usually available only when the underwriter has proof (an independent appraisal, or compliance with an insurance company valuation model) of the value of your property. When do I get paid?
Generally, the insurance company will not pay a replacement cost settlement until the property that was damaged or destroyed is actually repaired or replaced as soon as reasonably possible after the loss.
Under no circumstances will the insurance company pay more than your limit of insurance or more than the actual amount you spend to repair or replace the damaged property if this amount is less than the limit of insurance.
Replacement cost insurance terms give the insured the option of settling the loss on an ACV basis. This option may be exercised if you don't plan to replace the building or if you are faced with a significant coinsurance penalty on a replacement cost settlement.
References: http://www.schirickinsurance.com/resources/value2005.pdf and TIPTON, Harold F. & KRAUSE, MICKI Information Security Management Handbook, 4th Edition, Volume 1 Property Insurance overview, Page 587.
Question 162
As a best practice, the Security Assessment Report (SAR) should include which of the following sections?
Correct Answer: C
A Security Assessment Report (SAR) is a document that summarizes the findings and recommendations of a security assessment. A SAR should include the following sections: an executive summary, a scope and methodology, a threat and risk analysis, a vulnerability analysis, a security control assessment, and remediation recommendations. Remediation recommendations are the best practices that the SAR should include, as they provide the actions that need to be taken to address the identified security gaps and risks. Data classification policy, software and hardware inventory, and names of participants are not essential sections of a SAR, although they may be included as supporting information or appendices.
Question 163
Security personnel should be trained by emergency management personnel in what to do before and during a disaster, as well as their role in recovery efforts. Personnel should take required training for emergency response procedures and protocols. Which part of physical security design does this fall under?
Correct Answer: C
The training of security personnel on what to do before, during, and after a disaster, as well as their role in recovery efforts, aligns with the concept of emergency preparedness. This involves preparing individuals and organizations for potential emergencies, disasters, or other unexpected events. It includes training, planning, and implementing procedures to ensure a coordinated and effective response to various scenarios that may impact the security and safety of personnel and assets.
Question 164
What allows a relation to contain multiple rows with a same primary key?
Correct Answer: C
In databases, polyinstantiation is database-related SQL (structured query language) terminology. It allows a relation to contain multiple rows with the same primary key; the multiple instances are distinguished by their security levels. It occurs because of mandatory policy. Depending on the security level established, one record contains sensitive information, and the other one does not, that is, a user will see the record's information depending on his/her level of confidentiality previously dictated by the company's policy.
The following answers are incorrect:
An RDBMS is a DBMS in which data is stored in tables and the relationships among the data are also stored in tables. The data can be accessed or reassembled in many different ways without having to change the table forms.
Polymorphism based on the Greek roots "poly" and "morph," meaning many and forms, respectively): allows the ability to overload operators, performing different methods depending on the context of the input message.
It is not possible
The following reference(s) were/was used to create this question:
http://en.wikipedia.org/wiki/Polyinstantiation
https://en.wikipedia.org/wiki/Relational_database_management_system
https://en.wikipedia.org/wiki/Polymorphism_%28computer_science%29
http://my.safaribooksonline.com/book/certification/cissp/9781597495639
The following answers are incorrect:
An RDBMS is a DBMS in which data is stored in tables and the relationships among the data are also stored in tables. The data can be accessed or reassembled in many different ways without having to change the table forms.
Polymorphism based on the Greek roots "poly" and "morph," meaning many and forms, respectively): allows the ability to overload operators, performing different methods depending on the context of the input message.
It is not possible
The following reference(s) were/was used to create this question:
http://en.wikipedia.org/wiki/Polyinstantiation
https://en.wikipedia.org/wiki/Relational_database_management_system
https://en.wikipedia.org/wiki/Polymorphism_%28computer_science%29
http://my.safaribooksonline.com/book/certification/cissp/9781597495639
Question 165
Which one of the following is an asymmetric algorithm?
Correct Answer: D
Merkle-Hellman Knapsack is a Public Key Algorithm Pg 206 Krutz: CISSP Prep Guide: Gold Edition.
Not A:
"DES describes the Data Encryption Algorithm (DEA) and is the name of the Federal Information Processing Standard (FIPS) 46-1 that was adopted in 1977..." pg 195 Krutz: CISSP Prep Guide: Gold Edition.
Not B:
"The best-known symmetric key system is probably the Data Encryption Standard (DES)." pg 195 Krutz: CISSP Prep Guide: Gold Edition.
Not C:
"The German military used a polyalphabetic substitution cipher machine called the Enigma as its principal encipherment system during World War II." Pg 185 Krutz: CISSP Prep Guide: Gold Edition.
Not A:
"DES describes the Data Encryption Algorithm (DEA) and is the name of the Federal Information Processing Standard (FIPS) 46-1 that was adopted in 1977..." pg 195 Krutz: CISSP Prep Guide: Gold Edition.
Not B:
"The best-known symmetric key system is probably the Data Encryption Standard (DES)." pg 195 Krutz: CISSP Prep Guide: Gold Edition.
Not C:
"The German military used a polyalphabetic substitution cipher machine called the Enigma as its principal encipherment system during World War II." Pg 185 Krutz: CISSP Prep Guide: Gold Edition.
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