AU 61 Chapter Three
Hazards they present - answer for pricing purposes, occupancies are classified
according to the
how hazardous the occupancy is in comparison with other occupancies - answer
relative hazards
basic occupancy charge, combustibility of contents, susceptibility of contents, and
additional occupancy hazards - answerto assess the relative hazards of a particular
occupancy and to accurately set pricing, underwriters consider four factors within the
ISO occupancy rating system:
degree of hazard - answeran occupancy's what affects the amount of property
insurance an undewriter is willing to accept
basic occupancy charge - answera rating system factor that reflects the relative hazard
of an occupancy for pricing purposes and is expressed as a percentage of the bases
rate (ranges from 10 percent to 1,000 percent)
combustibility - answerthe ability of something to ignite and burn; a major determinant of
the overall fire hazard
susceptbility - answerthe extent to which fire and its effects will cause damage to
materials
c-1 noncombustible, c-2 limited combustibility, c-3 combustible, c-4 fire burning, c-5
rapid burning or flash burning - answercombustibility classifcations
c-1 noncombustible - answercontents that in permissible quantities do not in themselves
constitute an active fuel for the spread of fire
c-2 limited combustibility - answercontents of low combustibility with limited
concentrations of combustible materials
c-3 combustible - answercontents of moderate combustibility
c-4 fire burning - answercontents that burn freely, consulting an active fuel
c-5 rapid burning or flash burning - answercontents that burn with great intensity;
spontaneously ignite and are difficult to extinguish; give off flammable or explosive
vapors at ordinary temperatures; or, as a result of industrial processing, produce large
quantities of dust or fine debris that are subject to flash fire or explosion
, businesses storing clay, glass, marble, stone, or metal products and some metalworking
occupancies - answerexamples of c-1 noncombustible
barbershops, churches, health clubs, apartments, hospitals, and schools -
answerexamples of c-2 limited combustibility
food markets, pet shops, printers, supermarkets, and book stores (most wholesale and
retail occupancies) - answerexamples of c-3 combustible
cabinetmakers, feed stores, furniture manufacturers, paper manufacturers, and stables -
answerexamples of c-4 free burning
feed mills; mattress manufacturers; upholsterers; and those storing ammunition,
explosives, or wastepaper - answerexamples of c-5 rapid burning or flash burning
s-1 minimal damage, s-2 slight damage, s-3 moderate damage, s-4 heavy damage, s-5
extreme loss (total loss possible) - answersusceptibility classifications
pig iron, marble, heavy materials - answerexamples of s-1 minimal damage
sheet metal, green hides or skins - answerexamples of s-2 slight damage
boots, shoes, household appliances - answerexamples of s-3 moderate damage
books, clothing, furniture - answerexamples of s-4 heavy damage
animals, birds, explosives, flowers, and furs - answerexamples of s-5 extreme damage
analysis of the physical hazards associated with a structure - answerwhat is a crucial
step for commercial property underwriters?
common hazards, special hazards of the class, and special hazards of the risk -
answerphysical hazards, presented by an occupancy, can be most thoroughly analyzed
if they are divided into three groups:
common hazards - answerhazards existing in almost every class of business
occupancy, usually referring to (1) housekeeping, (2) heating equipment, (3) electrical
equipment, (4) smoking
fuel cannot be controlled or withdrawn once added to the fire - answerwood-burning
stoves and salamanders (portable heaters) present a greater hazard than gas furnaces
because
special hazards of the class - answera characteristic typical of all occupancies in a
given class that can cause or aggravate a loss
Hazards they present - answer for pricing purposes, occupancies are classified
according to the
how hazardous the occupancy is in comparison with other occupancies - answer
relative hazards
basic occupancy charge, combustibility of contents, susceptibility of contents, and
additional occupancy hazards - answerto assess the relative hazards of a particular
occupancy and to accurately set pricing, underwriters consider four factors within the
ISO occupancy rating system:
degree of hazard - answeran occupancy's what affects the amount of property
insurance an undewriter is willing to accept
basic occupancy charge - answera rating system factor that reflects the relative hazard
of an occupancy for pricing purposes and is expressed as a percentage of the bases
rate (ranges from 10 percent to 1,000 percent)
combustibility - answerthe ability of something to ignite and burn; a major determinant of
the overall fire hazard
susceptbility - answerthe extent to which fire and its effects will cause damage to
materials
c-1 noncombustible, c-2 limited combustibility, c-3 combustible, c-4 fire burning, c-5
rapid burning or flash burning - answercombustibility classifcations
c-1 noncombustible - answercontents that in permissible quantities do not in themselves
constitute an active fuel for the spread of fire
c-2 limited combustibility - answercontents of low combustibility with limited
concentrations of combustible materials
c-3 combustible - answercontents of moderate combustibility
c-4 fire burning - answercontents that burn freely, consulting an active fuel
c-5 rapid burning or flash burning - answercontents that burn with great intensity;
spontaneously ignite and are difficult to extinguish; give off flammable or explosive
vapors at ordinary temperatures; or, as a result of industrial processing, produce large
quantities of dust or fine debris that are subject to flash fire or explosion
, businesses storing clay, glass, marble, stone, or metal products and some metalworking
occupancies - answerexamples of c-1 noncombustible
barbershops, churches, health clubs, apartments, hospitals, and schools -
answerexamples of c-2 limited combustibility
food markets, pet shops, printers, supermarkets, and book stores (most wholesale and
retail occupancies) - answerexamples of c-3 combustible
cabinetmakers, feed stores, furniture manufacturers, paper manufacturers, and stables -
answerexamples of c-4 free burning
feed mills; mattress manufacturers; upholsterers; and those storing ammunition,
explosives, or wastepaper - answerexamples of c-5 rapid burning or flash burning
s-1 minimal damage, s-2 slight damage, s-3 moderate damage, s-4 heavy damage, s-5
extreme loss (total loss possible) - answersusceptibility classifications
pig iron, marble, heavy materials - answerexamples of s-1 minimal damage
sheet metal, green hides or skins - answerexamples of s-2 slight damage
boots, shoes, household appliances - answerexamples of s-3 moderate damage
books, clothing, furniture - answerexamples of s-4 heavy damage
animals, birds, explosives, flowers, and furs - answerexamples of s-5 extreme damage
analysis of the physical hazards associated with a structure - answerwhat is a crucial
step for commercial property underwriters?
common hazards, special hazards of the class, and special hazards of the risk -
answerphysical hazards, presented by an occupancy, can be most thoroughly analyzed
if they are divided into three groups:
common hazards - answerhazards existing in almost every class of business
occupancy, usually referring to (1) housekeeping, (2) heating equipment, (3) electrical
equipment, (4) smoking
fuel cannot be controlled or withdrawn once added to the fire - answerwood-burning
stoves and salamanders (portable heaters) present a greater hazard than gas furnaces
because
special hazards of the class - answera characteristic typical of all occupancies in a
given class that can cause or aggravate a loss
