AU 60 Assignment 8 Communication
and Negotiation for Underwriters
complete with Questions and Answers
Bargaining Stage - correct answer- ✅The next stage of the negotiations is ____. Based on the
foundation established in the opening stage, the underwriter and the producer collaboratively
explore solutions that will meet the needs of both parties. The underwriter should express his or
her willingness to negotiate and his or her interest in reaching a mutually beneficial resolution.
Sender - correct answer- ✅The person who initiates the communication process.
Receiver - correct answer- ✅The person who chooses from the verbal and nonverbal symbols
in the sender's message to interpret the message's meaning.
Initial credibility - correct answer- ✅The degree of credibility an individual has before
interpersonal communication begins.
Derived credibility - correct answer- ✅An individual's perceived credibility during interpersonal
communication.
Terminal credibility - correct answer- ✅An individual's perceived credibility after interpersonal
communication in a given situation has occurred.
Message - correct answer- ✅The words a sender uses in the communications process and
their underlying theme.
Encoding - correct answer- ✅The process of translating a message into words.
Medium - correct answer- ✅The means by which a message is transmitted from sender to
receiver.
Decoding - correct answer- ✅The process by which a receiver interprets a sender's message.
Active listening - correct answer- ✅The process of listening with mental and physical openness
to more clearly determine a message's meaning.
C. Initial credibility. - correct answer- ✅Credibility that depends on an individual's reputation
and experience is known as
A. Terminal credibility.
B. Reputational credibility.
C. Initial credibility.
D. Derived credibility.
B. Verbal messages should have some demonstrable utility or relevance for the receiver. -
correct answer- ✅Which one of the following statements is correct with respect to
communication?
,A. An underwriter cannot evaluate whether the receiver has interpreted a message accurately.
B. Verbal messages should have some demonstrable utility or relevance for the receiver.
C. Feelings and emotions are more accurately conveyed by verbal rather than nonverbal
communication.
D. Nonverbal communication is far less effective in conveying meaning than verbal
communication.
A. When selling a decision to make changes to an account, highlighting a resulting benefit can
help. - correct answer- ✅Which one of the following statements is true regarding selling a
decision?
A. When selling a decision to make changes to an account, highlighting a resulting benefit can
help.
B. Underwriters cannot convince producers that the reasoning behind declining an account is
valid.
C. Underwriters should avoid building rapport with producers as this can influence their
decisions.
D. When trying to persuade, generalizations tend to be more effective than specific facts.
D. Am I really listening, or am I thinking about what I'll say next? - correct answer- ✅Hugh, a
commercial property underwriter, received a submission from a producer and elected to decline
the business. Based on the application and Best's Underwriting Guide, Hugh determined that
there was a higher-than-average fire risk associated with the applicant's operations. The
producer has telephoned Hugh to discuss the file and to try to convince him to accept the
business. While listening to the producer, which one of the following questions would Hugh be
best to ask himself?
A. How can I explain the fire hazards in a way the producer will understand?
B. Why does the producer not understand that the risk is unacceptable?
C. What was it about my written correspondence that was unclear to the producer?
D. Am I really listening, or am I thinking about what I'll say next?
A. Make an outline of the information he needs. - correct answer- ✅Wayne is a commercial
property underwriter. He has received a submission from a producer and has determined that
he needs additional information to properly assess the risk. Which one of the following would
Wayne be best to do first?
A. Make an outline of the information he needs.
, B. Chastise the producer for not providing the information.
C. Decline the risk due to the lack of information.
D. Request that a loss control report be done.
A. The ability to listen actively - correct answer- ✅Which one of the following is one of the most
essential skills for the receiver in the communication process model?
A. The ability to listen actively
B. The ability to accurately decode messages
C. The ability to perceive nonverbal messages
D. The ability to provide feedback to the sender
D. Miscommunication can result if an underwriter's written or oral communication is ambiguous.
- correct answer- ✅Which one of the following statements is correct in the context of the
communication process model?
A. Effective communication is independent of formal grammatical rules.
B. The clearest way to communicate with producers and insureds is to use technical insurance
terminology.
C. The term encoding refers to the process of wording communication so that its meaning is
obscured.
D. Miscommunication can result if an underwriter's written or oral communication is ambiguous.
D. Telephone the producer. - correct answer- ✅Arpad is a commercial lines underwriter at ABC
Insurance. He is reviewing a property insurance submission and notices that the producer has
neglected to indicate the construction type of the building on the application. Which one of the
following would be the best medium for Arpad to use to obtain the missing information?
A. Visit the producer's office for a meeting.
B. Arrange a video conference with the producer.
C. Send the producer a letter.
D. Telephone the producer.
A. Initial credibility - correct answer- ✅The credibility of the sender is an important
consideration in the communication process. Which one of the following depends partly on the
individual underwriter's reputation and experience, and partly on the perceived status of the
underwriting profession?
A. Initial credibility
and Negotiation for Underwriters
complete with Questions and Answers
Bargaining Stage - correct answer- ✅The next stage of the negotiations is ____. Based on the
foundation established in the opening stage, the underwriter and the producer collaboratively
explore solutions that will meet the needs of both parties. The underwriter should express his or
her willingness to negotiate and his or her interest in reaching a mutually beneficial resolution.
Sender - correct answer- ✅The person who initiates the communication process.
Receiver - correct answer- ✅The person who chooses from the verbal and nonverbal symbols
in the sender's message to interpret the message's meaning.
Initial credibility - correct answer- ✅The degree of credibility an individual has before
interpersonal communication begins.
Derived credibility - correct answer- ✅An individual's perceived credibility during interpersonal
communication.
Terminal credibility - correct answer- ✅An individual's perceived credibility after interpersonal
communication in a given situation has occurred.
Message - correct answer- ✅The words a sender uses in the communications process and
their underlying theme.
Encoding - correct answer- ✅The process of translating a message into words.
Medium - correct answer- ✅The means by which a message is transmitted from sender to
receiver.
Decoding - correct answer- ✅The process by which a receiver interprets a sender's message.
Active listening - correct answer- ✅The process of listening with mental and physical openness
to more clearly determine a message's meaning.
C. Initial credibility. - correct answer- ✅Credibility that depends on an individual's reputation
and experience is known as
A. Terminal credibility.
B. Reputational credibility.
C. Initial credibility.
D. Derived credibility.
B. Verbal messages should have some demonstrable utility or relevance for the receiver. -
correct answer- ✅Which one of the following statements is correct with respect to
communication?
,A. An underwriter cannot evaluate whether the receiver has interpreted a message accurately.
B. Verbal messages should have some demonstrable utility or relevance for the receiver.
C. Feelings and emotions are more accurately conveyed by verbal rather than nonverbal
communication.
D. Nonverbal communication is far less effective in conveying meaning than verbal
communication.
A. When selling a decision to make changes to an account, highlighting a resulting benefit can
help. - correct answer- ✅Which one of the following statements is true regarding selling a
decision?
A. When selling a decision to make changes to an account, highlighting a resulting benefit can
help.
B. Underwriters cannot convince producers that the reasoning behind declining an account is
valid.
C. Underwriters should avoid building rapport with producers as this can influence their
decisions.
D. When trying to persuade, generalizations tend to be more effective than specific facts.
D. Am I really listening, or am I thinking about what I'll say next? - correct answer- ✅Hugh, a
commercial property underwriter, received a submission from a producer and elected to decline
the business. Based on the application and Best's Underwriting Guide, Hugh determined that
there was a higher-than-average fire risk associated with the applicant's operations. The
producer has telephoned Hugh to discuss the file and to try to convince him to accept the
business. While listening to the producer, which one of the following questions would Hugh be
best to ask himself?
A. How can I explain the fire hazards in a way the producer will understand?
B. Why does the producer not understand that the risk is unacceptable?
C. What was it about my written correspondence that was unclear to the producer?
D. Am I really listening, or am I thinking about what I'll say next?
A. Make an outline of the information he needs. - correct answer- ✅Wayne is a commercial
property underwriter. He has received a submission from a producer and has determined that
he needs additional information to properly assess the risk. Which one of the following would
Wayne be best to do first?
A. Make an outline of the information he needs.
, B. Chastise the producer for not providing the information.
C. Decline the risk due to the lack of information.
D. Request that a loss control report be done.
A. The ability to listen actively - correct answer- ✅Which one of the following is one of the most
essential skills for the receiver in the communication process model?
A. The ability to listen actively
B. The ability to accurately decode messages
C. The ability to perceive nonverbal messages
D. The ability to provide feedback to the sender
D. Miscommunication can result if an underwriter's written or oral communication is ambiguous.
- correct answer- ✅Which one of the following statements is correct in the context of the
communication process model?
A. Effective communication is independent of formal grammatical rules.
B. The clearest way to communicate with producers and insureds is to use technical insurance
terminology.
C. The term encoding refers to the process of wording communication so that its meaning is
obscured.
D. Miscommunication can result if an underwriter's written or oral communication is ambiguous.
D. Telephone the producer. - correct answer- ✅Arpad is a commercial lines underwriter at ABC
Insurance. He is reviewing a property insurance submission and notices that the producer has
neglected to indicate the construction type of the building on the application. Which one of the
following would be the best medium for Arpad to use to obtain the missing information?
A. Visit the producer's office for a meeting.
B. Arrange a video conference with the producer.
C. Send the producer a letter.
D. Telephone the producer.
A. Initial credibility - correct answer- ✅The credibility of the sender is an important
consideration in the communication process. Which one of the following depends partly on the
individual underwriter's reputation and experience, and partly on the perceived status of the
underwriting profession?
A. Initial credibility
