AU 61 Practice Exam Questions
Which one of the following construction features of the insured building increases the
required separation distance from the exposing building? - answer Windows.
The extent of damage from an earthquake is of utmost importance to an underwriter.
Seismologists use various scales to measure the magnitude, intensity and energy
released by an earthquake. The damage caused to people and property is measured by
the - answer Modified Mercalli Intensity Scale.
Which one of the following statements is true regarding the cost-benefit analysis of a
risk control program? - answerA project can be economically feasible only if the benefits
exceed the costs.
A preaction sprinkler system works by: - answer Combining elements of wet and dry
sprinkler systems.
Which one of the following is true regarding office occupancies? - answerA primary
ignition source affecting office occupancies is faulty or malfunctioning wiring.
A florist in a strip shopping center sustained significant damage from a fire caused by a
neighboring pizza shop's deep fryer. The fire spread to the florist before the fire
department could arrive. During the underwriting process for the florist's property
insurance, this risk would most likely have been considered by the underwriter under
which one of the following COPE elements? - answerExternal exposure.
Which one of the following statements is true regarding the flammable range of a
mixture? - answerCombustion occurs most efficiently at or near the middle of the
flammable range.
The most prudent assumption for an underwriter when estimating the probable
maximum loss for business income is to assume that a loss will occur at which one of
the following times for an organization? - answerDuring the organization's peak season.
Verifying the values of property exposed to a loss is an essential part of commercial
property underwriting. For example, if the property values shown on a commercial
property submission are higher than the property's actual value, then: - answerThe
insured will pay for unnecessary coverage.
Underwriters can make recommendations to insureds for simple risk control measures
to manage riot, civil commotion, and terrorism loss exposures. To lessen the potential
severity of these type losses, underwriters can: - answerLook for signs that the insured
premises are resistant to these causes of loss.
,In mercantile occupancies, the combustibility of the contents varies, depending primarily
on the: - answerMerchandise being sold.
An industrial operation that produces significant dust has an increased exposure for
which one of the following types of explosions that is common in most industrial
explosions at a rate slower than the speed of sound? - answerDeflagration.
Personal property values are easier to determine than real property values. However,
when the values of personal property are difficult to resolve, which one of the following
is almost always required? - answerAn outside appraisal.
Which one of the following statements regarding common types of flood is correct? -
answerMan-made topographic changes can cause floods.
The terrain of the land contributes significantly to the spread of wildfire. Wildfires spread
more rapidly in terrains with which one of the following? - answerSteep slopes.
An underwriter should be familiar with different types of occupancies and the risks they
present to properly evaluate them for property insurance. In particular, underwriters
should be familiar with the wide variety of occupancies in the largest and fastest
growing segment of most Western economies, which is: - answerService industry
occupancies.
For full protection of sensitive electrical devices, including data processing equipment
and electrical motors, which one of the following precautions should generally be taken?
- answerThe addition of interior surge protectors.
For commercial property insurance, the fire loss exposure for habitational occupancies
can be significant. Therefore, a property underwriter should be aware of the leading
cause of habitational occupancy fires, which is: - answerCooking equipment.
While traveling on an interstate highway, Julia Carson noticed a large plume of smoke
in what appeared to be an isolated area. Julia pulled off at the next exit and called 911
to reach a single emergency response center that dispatched local fire services to the
area. Which one of the following elements did Julia use? - answerFire detection.
Of the following types of property, which one would be of the most concern to an
underwriter as it relates to potential hail damage? - answerHistoric buildings with copper
or tin roofing.
Which one of the following types of detectors responds to the presence of smoke
particles in the air and sounds an alarm when smoke in the air scatters light onto a light-
sensitive element? - answerPhotoelectric cell smoke detector.
, 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 because the activities are not typical of
other businesses in their class? - answerSpecial hazards of the risk.
Which one of the following statements is true regarding noncombustible construction? -
answerNoncombustible buildings are usually made of metal, but the metal is
unprotected and therefore not fire resistive.
The proper way to determine how much business income coverage an insured needs is
to start with a probable maximum loss expressed as: - answerA dollar amount.
Austin is a commercial property underwriter. He is evaluating an industrial building with
an automatic sprinkler system. Which one of the following would make Austin
concerned about the potential for sprinkler leakage damage in the building? -
answerThe building is rated as nonsprinklered by ISO. A nonsprinklered rating for a
building that has a sprinkler system generally indicates deficient installation or
maintenance of the system that will prevent it from performing properly and may result
in sprinkler-leakage losses.
Which one of the following statements about the business income coverage of
Businessowners Policies with an actual loss sustained coverage feature is true? -
answerThey usually contain a time limit, but no coverage dollar limit.
The age of a building is a key factor affecting the underwriting desirability of an account
for commercial property insurance. Which one of the following is true regarding the age
of a building from an underwriting perspective? - answerOlder buildings are more
vulnerable to damage than newer buildings when faced with causes of loss such as
windstorm and hail.
Many causes of loss arise from the nature of the operations that the insured business
conducts. For an underwriter to have an easier time establishing equitable rates: -
answerRisk control measures must be applied to loss exposures.
Roger is a property underwriter. He has been asked to assess the property risk of a
building from a new account and issue the policy quickly. He is considering the
classification assigned to the property and determine an appropriate premium. He has
obtained the public information on the structure and photos of inside and outside the
building. It is clear that there have been substantial changes and add-on's to the
building. Roger does not feel he has enough information to properly classify the
building. Which should Roger do next? - answerBuildings that cannot be properly
classified because of a lack of information can be tentatively classified and rated as
frame construction building.
Mitsuki, an underwriter, is evaluating a property insurance submission for Machineworks
Limited, a metalworking shop that fabricates precision tools, stamping dies and molds,
Which one of the following construction features of the insured building increases the
required separation distance from the exposing building? - answer Windows.
The extent of damage from an earthquake is of utmost importance to an underwriter.
Seismologists use various scales to measure the magnitude, intensity and energy
released by an earthquake. The damage caused to people and property is measured by
the - answer Modified Mercalli Intensity Scale.
Which one of the following statements is true regarding the cost-benefit analysis of a
risk control program? - answerA project can be economically feasible only if the benefits
exceed the costs.
A preaction sprinkler system works by: - answer Combining elements of wet and dry
sprinkler systems.
Which one of the following is true regarding office occupancies? - answerA primary
ignition source affecting office occupancies is faulty or malfunctioning wiring.
A florist in a strip shopping center sustained significant damage from a fire caused by a
neighboring pizza shop's deep fryer. The fire spread to the florist before the fire
department could arrive. During the underwriting process for the florist's property
insurance, this risk would most likely have been considered by the underwriter under
which one of the following COPE elements? - answerExternal exposure.
Which one of the following statements is true regarding the flammable range of a
mixture? - answerCombustion occurs most efficiently at or near the middle of the
flammable range.
The most prudent assumption for an underwriter when estimating the probable
maximum loss for business income is to assume that a loss will occur at which one of
the following times for an organization? - answerDuring the organization's peak season.
Verifying the values of property exposed to a loss is an essential part of commercial
property underwriting. For example, if the property values shown on a commercial
property submission are higher than the property's actual value, then: - answerThe
insured will pay for unnecessary coverage.
Underwriters can make recommendations to insureds for simple risk control measures
to manage riot, civil commotion, and terrorism loss exposures. To lessen the potential
severity of these type losses, underwriters can: - answerLook for signs that the insured
premises are resistant to these causes of loss.
,In mercantile occupancies, the combustibility of the contents varies, depending primarily
on the: - answerMerchandise being sold.
An industrial operation that produces significant dust has an increased exposure for
which one of the following types of explosions that is common in most industrial
explosions at a rate slower than the speed of sound? - answerDeflagration.
Personal property values are easier to determine than real property values. However,
when the values of personal property are difficult to resolve, which one of the following
is almost always required? - answerAn outside appraisal.
Which one of the following statements regarding common types of flood is correct? -
answerMan-made topographic changes can cause floods.
The terrain of the land contributes significantly to the spread of wildfire. Wildfires spread
more rapidly in terrains with which one of the following? - answerSteep slopes.
An underwriter should be familiar with different types of occupancies and the risks they
present to properly evaluate them for property insurance. In particular, underwriters
should be familiar with the wide variety of occupancies in the largest and fastest
growing segment of most Western economies, which is: - answerService industry
occupancies.
For full protection of sensitive electrical devices, including data processing equipment
and electrical motors, which one of the following precautions should generally be taken?
- answerThe addition of interior surge protectors.
For commercial property insurance, the fire loss exposure for habitational occupancies
can be significant. Therefore, a property underwriter should be aware of the leading
cause of habitational occupancy fires, which is: - answerCooking equipment.
While traveling on an interstate highway, Julia Carson noticed a large plume of smoke
in what appeared to be an isolated area. Julia pulled off at the next exit and called 911
to reach a single emergency response center that dispatched local fire services to the
area. Which one of the following elements did Julia use? - answerFire detection.
Of the following types of property, which one would be of the most concern to an
underwriter as it relates to potential hail damage? - answerHistoric buildings with copper
or tin roofing.
Which one of the following types of detectors responds to the presence of smoke
particles in the air and sounds an alarm when smoke in the air scatters light onto a light-
sensitive element? - answerPhotoelectric cell smoke detector.
, 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 because the activities are not typical of
other businesses in their class? - answerSpecial hazards of the risk.
Which one of the following statements is true regarding noncombustible construction? -
answerNoncombustible buildings are usually made of metal, but the metal is
unprotected and therefore not fire resistive.
The proper way to determine how much business income coverage an insured needs is
to start with a probable maximum loss expressed as: - answerA dollar amount.
Austin is a commercial property underwriter. He is evaluating an industrial building with
an automatic sprinkler system. Which one of the following would make Austin
concerned about the potential for sprinkler leakage damage in the building? -
answerThe building is rated as nonsprinklered by ISO. A nonsprinklered rating for a
building that has a sprinkler system generally indicates deficient installation or
maintenance of the system that will prevent it from performing properly and may result
in sprinkler-leakage losses.
Which one of the following statements about the business income coverage of
Businessowners Policies with an actual loss sustained coverage feature is true? -
answerThey usually contain a time limit, but no coverage dollar limit.
The age of a building is a key factor affecting the underwriting desirability of an account
for commercial property insurance. Which one of the following is true regarding the age
of a building from an underwriting perspective? - answerOlder buildings are more
vulnerable to damage than newer buildings when faced with causes of loss such as
windstorm and hail.
Many causes of loss arise from the nature of the operations that the insured business
conducts. For an underwriter to have an easier time establishing equitable rates: -
answerRisk control measures must be applied to loss exposures.
Roger is a property underwriter. He has been asked to assess the property risk of a
building from a new account and issue the policy quickly. He is considering the
classification assigned to the property and determine an appropriate premium. He has
obtained the public information on the structure and photos of inside and outside the
building. It is clear that there have been substantial changes and add-on's to the
building. Roger does not feel he has enough information to properly classify the
building. Which should Roger do next? - answerBuildings that cannot be properly
classified because of a lack of information can be tentatively classified and rated as
frame construction building.
Mitsuki, an underwriter, is evaluating a property insurance submission for Machineworks
Limited, a metalworking shop that fabricates precision tools, stamping dies and molds,
