AU 60 COMPREHENSIVE EXAMINATION TEST
2026 SOLVED QUESTIONS ACCURATE
◉ An underwriter analyzing historical loss data for loss frequency
trends must also evaluate historical
Select one:
A. Exposures.
B. Financial statements.
C. Premiums.
D. Inflation rates.. Answer: A. Exposures.
◉ Because underwriters must gather and process information
efficiently, they should make the best possible use of the information
immediately available. The two sources of information that are
available as soon as the underwriter receives a submission are the
producer and
Select one:
A. The application.
B. The insured.
C. Risk control reports.
D. Motor vehicle reports (MVRs). Answer: A. The application
,◉ If an account is experienced rated, for which of the following
reasons might an underwriter have to contact the prior carrier?
Select one:
A. To establish a safety program for the account
B. To confirm or update the loss history provided by the insured
C. To appoint a risk manager for the account
D. All the above. Answer: B. To confirm or update the loss history
provided by the insured
◉ The underwriter's primary source of dependable information
about an account is the
Select one:
A. Applicant.
B. Producer.
C. Current insurer
D. Claims adjuster.. Answer: B. Producer
◉ Underwriters closely examine loss frequency and severity. Which
of the following statements is (are) true regarding frequency and
severity?
Select one:
A. Severity refers to the number of losses over a particular period.
B. Severity is usually a better indicator of future loss experience.
,C. Frequency is usually controllable.
D. All of the above. Answer: C. Frequency is usually controllable.
◉ Which of the following statements regarding the role of the
producer in underwriting an account is (are) true?
Select one:
A. With first-hand knowledge of the account, the producer can
answer many questions for the underwriter.
B. The extent of the producer's familiarity with the prospect
influences the credibility of the information on the application.
C. Producers should understand the type of accounts the insurer
prefers, as well as the insurer's underwriting guidelines.
D. All of the above. Answer: D. All of the above
◉ An underwriter is reviewing an ACORD Commercial Insurance
Application which indicates that coverage has been declined,
canceled, or nonrenewed during the past three years. Which one of
the following reasons would be least relevant to the current
underwriting decision?
Select one:
A. Nonpayment of premium
B. Loss experience
C. Failure to implement risk control recommendations
, D. Insurer's withdrawal from state. Answer: D. Insurer's withdrawal
from state
◉ Samuel is a commercial accounts underwriter working on a new
application with five buildings located within the same territory.
Samuel would like a photo of each building, and some nontechnical
information about the condition of the parking lots and the
neighboring buildings. Which one of the following would be the
most cost effective source of this information?
Select one:
A. Another underwriter
B. Risk control representative
C. Marketing representative
D. Claims representative. Answer: C. Marketing representative
◉ When underwriters want someone other than the producer
submitting an application to make a physical inspection of an
account, they usually
Select one:
A. Conduct the inspection or request that another underwriting
team member conduct the inspection.
B. Engage the services of a private inspection firm that reports on
physical as well as financial aspects of the account.
C. Request the records of the prior insurer.
2026 SOLVED QUESTIONS ACCURATE
◉ An underwriter analyzing historical loss data for loss frequency
trends must also evaluate historical
Select one:
A. Exposures.
B. Financial statements.
C. Premiums.
D. Inflation rates.. Answer: A. Exposures.
◉ Because underwriters must gather and process information
efficiently, they should make the best possible use of the information
immediately available. The two sources of information that are
available as soon as the underwriter receives a submission are the
producer and
Select one:
A. The application.
B. The insured.
C. Risk control reports.
D. Motor vehicle reports (MVRs). Answer: A. The application
,◉ If an account is experienced rated, for which of the following
reasons might an underwriter have to contact the prior carrier?
Select one:
A. To establish a safety program for the account
B. To confirm or update the loss history provided by the insured
C. To appoint a risk manager for the account
D. All the above. Answer: B. To confirm or update the loss history
provided by the insured
◉ The underwriter's primary source of dependable information
about an account is the
Select one:
A. Applicant.
B. Producer.
C. Current insurer
D. Claims adjuster.. Answer: B. Producer
◉ Underwriters closely examine loss frequency and severity. Which
of the following statements is (are) true regarding frequency and
severity?
Select one:
A. Severity refers to the number of losses over a particular period.
B. Severity is usually a better indicator of future loss experience.
,C. Frequency is usually controllable.
D. All of the above. Answer: C. Frequency is usually controllable.
◉ Which of the following statements regarding the role of the
producer in underwriting an account is (are) true?
Select one:
A. With first-hand knowledge of the account, the producer can
answer many questions for the underwriter.
B. The extent of the producer's familiarity with the prospect
influences the credibility of the information on the application.
C. Producers should understand the type of accounts the insurer
prefers, as well as the insurer's underwriting guidelines.
D. All of the above. Answer: D. All of the above
◉ An underwriter is reviewing an ACORD Commercial Insurance
Application which indicates that coverage has been declined,
canceled, or nonrenewed during the past three years. Which one of
the following reasons would be least relevant to the current
underwriting decision?
Select one:
A. Nonpayment of premium
B. Loss experience
C. Failure to implement risk control recommendations
, D. Insurer's withdrawal from state. Answer: D. Insurer's withdrawal
from state
◉ Samuel is a commercial accounts underwriter working on a new
application with five buildings located within the same territory.
Samuel would like a photo of each building, and some nontechnical
information about the condition of the parking lots and the
neighboring buildings. Which one of the following would be the
most cost effective source of this information?
Select one:
A. Another underwriter
B. Risk control representative
C. Marketing representative
D. Claims representative. Answer: C. Marketing representative
◉ When underwriters want someone other than the producer
submitting an application to make a physical inspection of an
account, they usually
Select one:
A. Conduct the inspection or request that another underwriting
team member conduct the inspection.
B. Engage the services of a private inspection firm that reports on
physical as well as financial aspects of the account.
C. Request the records of the prior insurer.
