AU 61 Chapter 3
Valley Paints, a commercial painting contractor, maintains a dual purpose building. One
side of the building houses its office and customer samples and meeting area. The
other side, separated by a steel door, houses an on-site inventory of standard paints,
solvents, sprayers, ladders, and other supplies. Under which one of the following ISO
occupancy rating system factors is Valley Paints most likely to be charged a premium
surcharge by its property insurer?
Select one:
A. Additional occupancy hazards
B. Combustibility of contents
C. Susceptibility of contents
D. Basic occupancy charge - answerA. Additional occupancy hazards
Insurance Services Office (ISO) uses an evaluation system to indicate the degree of
hazard that an occupancy presents in a particular classification. The type of code that
ISO applies for specifically rated risks, which becomes part of the rating information
supplied by ISO, is known as the
Select one:
A. Construction, Occupancy, Protection, and External Exposure (COPE) code.
B. Specific Commercial Property Evaluation Schedule (SCOPES) code.
C. Basic Occupancy Chart (BOC) code.
D. Commercial Statistical Plan (CSP) code. - answerD. Commercial Statistical Plan
(CSP) code.
Which one of the following terms refers to the ability of an item or material to ignite and
burn?
Select one:
A. Ignition factor
B. Flash rate
C. Flammability
D. Combustibility - answerD. Combustibility
All types of occupancy present physical hazards which can be most thoroughly
analyzed if they are divided into groups. Which one of the following is best identified by
a physical inspection of an insured's business?
Select one:
A. Common hazards
B. Typical hazards
C. Special hazards of the class
D. Special hazards of the risk - answerD. Special hazards of the risk
, Manor Inn, a bed and breakfast that was built at the turn of the century, has a common
area where its guests can relax and socialize, or curl up in front of a wood-burning stove
with a book from its library. Coffee, tea, and cookies are laid out on a sideboard for the
guests' refreshment. The building tends to be drafty, so the Inn uses portable heaters in
its dining room to keep its guests comfortable. Several of the suites contain fireplaces.
Which one of the following hazards groups best applies to the risks described?
Select one:
A. Typical hazards
B. Common hazards
C. Special hazards of the class
D. Special hazards of the risk - answerB. Common hazards
Physical hazards associated with structures can be most thoroughly analyzed if they are
divided into groups. Each of the following is an example of these hazard groups,
EXCEPT:
Select one:
A. Common hazards
B. Special hazards of the class
C. Special hazards of the risk
D. Occupational hazards - answerD. Occupational hazards
For most habitational occupancies, which one of the following is the leading cause of
fires?
Select one:
A. Fireplace sparks or inadequate shielding
B. Chimney fires due to lack of maintenance and cleaning
C. Cooking equipment
D. Intentionally set fires - answerC. Cooking equipment
Lincoln Apartments is considered a habitational commercial occupancy with respect to
underwriting of its property insurance. Anna, an underwriter, has requested additional
information regarding the account. She is particularly interested to know who is
responsible for maintaining the apartment units themselves. The building owner is
responsible to maintain the common areas, but the application was unclear about
responsibility for the units. Anna would likely find which one of the following most
desirable for her underwriting purposes?
Select one:
A. Maintenance of the units by maintenance contractors hired by the apartment
residents, because they are able to select parties to provide maintenance services with
which they are most comfortable
B. Maintenance of the units by maintenance contractors hired by the owner, because
the owner's interest is primarily in the common area, and less so in the units themselves
C. Mai - answerD. Maintenance of the units by the building owner, because this shows
an underwriter that the building owner cares about the building's condition
Valley Paints, a commercial painting contractor, maintains a dual purpose building. One
side of the building houses its office and customer samples and meeting area. The
other side, separated by a steel door, houses an on-site inventory of standard paints,
solvents, sprayers, ladders, and other supplies. Under which one of the following ISO
occupancy rating system factors is Valley Paints most likely to be charged a premium
surcharge by its property insurer?
Select one:
A. Additional occupancy hazards
B. Combustibility of contents
C. Susceptibility of contents
D. Basic occupancy charge - answerA. Additional occupancy hazards
Insurance Services Office (ISO) uses an evaluation system to indicate the degree of
hazard that an occupancy presents in a particular classification. The type of code that
ISO applies for specifically rated risks, which becomes part of the rating information
supplied by ISO, is known as the
Select one:
A. Construction, Occupancy, Protection, and External Exposure (COPE) code.
B. Specific Commercial Property Evaluation Schedule (SCOPES) code.
C. Basic Occupancy Chart (BOC) code.
D. Commercial Statistical Plan (CSP) code. - answerD. Commercial Statistical Plan
(CSP) code.
Which one of the following terms refers to the ability of an item or material to ignite and
burn?
Select one:
A. Ignition factor
B. Flash rate
C. Flammability
D. Combustibility - answerD. Combustibility
All types of occupancy present physical hazards which can be most thoroughly
analyzed if they are divided into groups. Which one of the following is best identified by
a physical inspection of an insured's business?
Select one:
A. Common hazards
B. Typical hazards
C. Special hazards of the class
D. Special hazards of the risk - answerD. Special hazards of the risk
, Manor Inn, a bed and breakfast that was built at the turn of the century, has a common
area where its guests can relax and socialize, or curl up in front of a wood-burning stove
with a book from its library. Coffee, tea, and cookies are laid out on a sideboard for the
guests' refreshment. The building tends to be drafty, so the Inn uses portable heaters in
its dining room to keep its guests comfortable. Several of the suites contain fireplaces.
Which one of the following hazards groups best applies to the risks described?
Select one:
A. Typical hazards
B. Common hazards
C. Special hazards of the class
D. Special hazards of the risk - answerB. Common hazards
Physical hazards associated with structures can be most thoroughly analyzed if they are
divided into groups. Each of the following is an example of these hazard groups,
EXCEPT:
Select one:
A. Common hazards
B. Special hazards of the class
C. Special hazards of the risk
D. Occupational hazards - answerD. Occupational hazards
For most habitational occupancies, which one of the following is the leading cause of
fires?
Select one:
A. Fireplace sparks or inadequate shielding
B. Chimney fires due to lack of maintenance and cleaning
C. Cooking equipment
D. Intentionally set fires - answerC. Cooking equipment
Lincoln Apartments is considered a habitational commercial occupancy with respect to
underwriting of its property insurance. Anna, an underwriter, has requested additional
information regarding the account. She is particularly interested to know who is
responsible for maintaining the apartment units themselves. The building owner is
responsible to maintain the common areas, but the application was unclear about
responsibility for the units. Anna would likely find which one of the following most
desirable for her underwriting purposes?
Select one:
A. Maintenance of the units by maintenance contractors hired by the apartment
residents, because they are able to select parties to provide maintenance services with
which they are most comfortable
B. Maintenance of the units by maintenance contractors hired by the owner, because
the owner's interest is primarily in the common area, and less so in the units themselves
C. Mai - answerD. Maintenance of the units by the building owner, because this shows
an underwriter that the building owner cares about the building's condition
