AU 60 MISSED PRACTICE TEST
EXAMINATION TEST 2026 TEST
PAPER QUESTIONS AND SOLUTIONS
GRADED A+ VERIFIED ANSWERS
◉ A group of policies with a common characteristic, such as a territory
or type of coverage, or all policies written by a particular insurer,
producer, or agency is referred to as
Choose one answer.
A. A book of business.
B. A coverage pool.
C. A line of business.
D. A policy group. Answer: A. A book of business.
◉ ABC Insurance Company's ratio of premiums to surplus is 2 to 1. If
the state requirement where ABC transacts business is 3 to 1, then ABC
Choose one answer.
A. Needs to issue more policies to be in compliance with state surplus
requirements.
, B. Can no longer write new business in that state.
C. Is likely to be the subject of a Department of Insurance market
conduct examination due to its solvency indicators.
D. Is meeting the state's surplus requirement. Answer: D. Is meeting the
state's surplus requirement.
◉ The residual markets for auto and property insurance influence
underwriters in which one of the following ways?
Choose one answer.
A. Insurers often must accept risks at inadequate rates.
B. Residual market risks pay the true costs of their coverage leaving
underwriters with few underwriting decisions.
C. Underwriting losses are decreased because residual-market risks can
be correctly classified as high risk.
D. Insurers can charge standard insureds less than the true cost for their
protection. Answer: A. Insurers often must accept risks at inadequate
rates.
EXAMINATION TEST 2026 TEST
PAPER QUESTIONS AND SOLUTIONS
GRADED A+ VERIFIED ANSWERS
◉ A group of policies with a common characteristic, such as a territory
or type of coverage, or all policies written by a particular insurer,
producer, or agency is referred to as
Choose one answer.
A. A book of business.
B. A coverage pool.
C. A line of business.
D. A policy group. Answer: A. A book of business.
◉ ABC Insurance Company's ratio of premiums to surplus is 2 to 1. If
the state requirement where ABC transacts business is 3 to 1, then ABC
Choose one answer.
A. Needs to issue more policies to be in compliance with state surplus
requirements.
, B. Can no longer write new business in that state.
C. Is likely to be the subject of a Department of Insurance market
conduct examination due to its solvency indicators.
D. Is meeting the state's surplus requirement. Answer: D. Is meeting the
state's surplus requirement.
◉ The residual markets for auto and property insurance influence
underwriters in which one of the following ways?
Choose one answer.
A. Insurers often must accept risks at inadequate rates.
B. Residual market risks pay the true costs of their coverage leaving
underwriters with few underwriting decisions.
C. Underwriting losses are decreased because residual-market risks can
be correctly classified as high risk.
D. Insurers can charge standard insureds less than the true cost for their
protection. Answer: A. Insurers often must accept risks at inadequate
rates.
