AU 61 TEST
A Commercial Package Policy, whether monoline or multiline, includes which one of the
following forms? - answer A Commercial Package Policy, whether monoline or multiline,
includes the Common Policy Conditions form.
Insureds sometimes purchase package policies to meet their insurance needs. The
underwriting approach can be affected by the type of package policies offered. Which
one of the following types of package policies is used to reduce adverse selection and
often results in a premium discount for the insured? - answer Minimum combination
requirement policies are used to reduce adverse selection and often results in a
premium discount for the insured.
Load-bearing components of a building prevent its collapse. Bill, a property underwriter,
is reviewing an application for a convention center. The convention center is a fire-
resistive structure with load-bearing exterior walls that enclose the building and support
its weight and that of its contents. Bill is most likely to - answer Larger structures require
vertical support in addition to exterior load-bearing walls, in the form of load-bearing
interior walls and/or columns. Design and planned occupancy of a building dictate the
choice between walls and columns, but the load-bearing components of noncombustible
and fire-resistive structures are usually columns.
Penn Woods Plaza, a strip shopping center in Pennsylvania, is classified as mill
construction. Its tenants include an accounting office, a Chinese restaurant, a pizza
parlor, a nail salon, and a dry cleaner. From a fire underwriting perspective, a property
underwriter is most likely to find this risk - answerMill construction is sometimes referred
to as "slow-burning construction". It has a minimum two-hour fire-resistance rating on
bearing walls, and an absence of floor joists. It is very expensive and rarely used today,
but would survive a severe fire.
The interior finishing materials of a building affect the building's combustibility and the
underwriting desirability of an account. Once a finish is installed, a small fire can ignite
the interior finish and quickly engulf the entire room, so that even a small fire may
quickly generate and spread toxic gases throughout the building. This process is known
as - answerA small fire can ignite the interior finish and quickly engulf the entire room, a
process referred to as flashover. Even a small fire can generate toxic gases that can be
distributed quickly throughout the entire building if it involves a highly combustible
interior finish.
When evaluating a submission for a building more than 20 years old, some underwriters
request a risk control inspection to verify the condition of the key elements of the
building. Which one of the following is most likely what an underwriter wants to verify,
even with an older building that has been adequately maintained? - answerEven an
, older building that is adequately maintained will show its age in its exterior surfaces,
particularly the roof. Losses can be expected from hail or wind if the roof shingles and
surfaces are not replaced every twenty to thirty years.
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 - answerThe type of code that ISO applies for
specifically rated risks, which becomes part of the rating information supplied by ISO, is
a Commercial Statistical Plan (CSP) code.
Mia is underwriting insurance for Weyville High School. The application shows that the
high school facility is a two-story structure with a large cafeteria that uses electrical
cooking appliances; a gymnasium; an auditorium for school plays, student assemblies
and parent meetings; an art room; and fully equipped science laboratories. The school
offers a number of extra-curricular activities and clubs, including art; the sports of
basketball, football, lacrosse, baseball and soccer; drama and performing arts;
photography; culinary arts; band and choir. Mia requests a risk control site visit in order
to properly assess the account risk. Which one of the following areas of Weyville High
School is Mia most likely to specifically remind her risk control representative to
address? - answerWhile these are all typical risks for a large high school, a particular
ignition source that an underwriter should note is the theatrical lighting used in many
school auditoriums. Weyville High School offers drama, band and choir and presents
school plays in its auditorium, so careful attention should be paid to its auditorium and
the use of theatrical lights.
Wholesale clubs rely on high sales volume and low overhead to maintain their profit
margins. Mitchell's, a membership wholesale club in the southeast, carries merchandise
typical of stores across the United States, for both home and office. It offers
membership both to individuals and businessowners. In addition to dry goods and
furniture, Mitchell's maintains refrigerator and freezer cases for cold food; a butcher
department; an onsite bakery; and an eatery for its customers that sells a limited
selection of simple foods like pizza, cold and hot sandwiches, pretzels, and soft ice
cream. A risk control representative who is assessing the property loss potential for
Mitchell's is most likely to focus on its - answerA risk control representative who is
assessing the property loss potential for Mitchell's is most likely to focus on its high-rack
storage, which can aid the spread of fire and hinder firefighting efforts.
Commercial property underwriters should be aware that self-service laundries, which
could operate on a 24-hour basis, are especially susceptible to which one of the
following perils? - answerTwenty-four hour self-service laundries are especially
susceptibility to vandalism.
Marty's Crab Shack is an owner-operated small casual restaurant on the bay shore in
Maryland that is best known for its seafood platters and sandwiches. Its deep-fried crab
cakes are said to be the best in the area. The building was built in 1987 of frame
A Commercial Package Policy, whether monoline or multiline, includes which one of the
following forms? - answer A Commercial Package Policy, whether monoline or multiline,
includes the Common Policy Conditions form.
Insureds sometimes purchase package policies to meet their insurance needs. The
underwriting approach can be affected by the type of package policies offered. Which
one of the following types of package policies is used to reduce adverse selection and
often results in a premium discount for the insured? - answer Minimum combination
requirement policies are used to reduce adverse selection and often results in a
premium discount for the insured.
Load-bearing components of a building prevent its collapse. Bill, a property underwriter,
is reviewing an application for a convention center. The convention center is a fire-
resistive structure with load-bearing exterior walls that enclose the building and support
its weight and that of its contents. Bill is most likely to - answer Larger structures require
vertical support in addition to exterior load-bearing walls, in the form of load-bearing
interior walls and/or columns. Design and planned occupancy of a building dictate the
choice between walls and columns, but the load-bearing components of noncombustible
and fire-resistive structures are usually columns.
Penn Woods Plaza, a strip shopping center in Pennsylvania, is classified as mill
construction. Its tenants include an accounting office, a Chinese restaurant, a pizza
parlor, a nail salon, and a dry cleaner. From a fire underwriting perspective, a property
underwriter is most likely to find this risk - answerMill construction is sometimes referred
to as "slow-burning construction". It has a minimum two-hour fire-resistance rating on
bearing walls, and an absence of floor joists. It is very expensive and rarely used today,
but would survive a severe fire.
The interior finishing materials of a building affect the building's combustibility and the
underwriting desirability of an account. Once a finish is installed, a small fire can ignite
the interior finish and quickly engulf the entire room, so that even a small fire may
quickly generate and spread toxic gases throughout the building. This process is known
as - answerA small fire can ignite the interior finish and quickly engulf the entire room, a
process referred to as flashover. Even a small fire can generate toxic gases that can be
distributed quickly throughout the entire building if it involves a highly combustible
interior finish.
When evaluating a submission for a building more than 20 years old, some underwriters
request a risk control inspection to verify the condition of the key elements of the
building. Which one of the following is most likely what an underwriter wants to verify,
even with an older building that has been adequately maintained? - answerEven an
, older building that is adequately maintained will show its age in its exterior surfaces,
particularly the roof. Losses can be expected from hail or wind if the roof shingles and
surfaces are not replaced every twenty to thirty years.
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 - answerThe type of code that ISO applies for
specifically rated risks, which becomes part of the rating information supplied by ISO, is
a Commercial Statistical Plan (CSP) code.
Mia is underwriting insurance for Weyville High School. The application shows that the
high school facility is a two-story structure with a large cafeteria that uses electrical
cooking appliances; a gymnasium; an auditorium for school plays, student assemblies
and parent meetings; an art room; and fully equipped science laboratories. The school
offers a number of extra-curricular activities and clubs, including art; the sports of
basketball, football, lacrosse, baseball and soccer; drama and performing arts;
photography; culinary arts; band and choir. Mia requests a risk control site visit in order
to properly assess the account risk. Which one of the following areas of Weyville High
School is Mia most likely to specifically remind her risk control representative to
address? - answerWhile these are all typical risks for a large high school, a particular
ignition source that an underwriter should note is the theatrical lighting used in many
school auditoriums. Weyville High School offers drama, band and choir and presents
school plays in its auditorium, so careful attention should be paid to its auditorium and
the use of theatrical lights.
Wholesale clubs rely on high sales volume and low overhead to maintain their profit
margins. Mitchell's, a membership wholesale club in the southeast, carries merchandise
typical of stores across the United States, for both home and office. It offers
membership both to individuals and businessowners. In addition to dry goods and
furniture, Mitchell's maintains refrigerator and freezer cases for cold food; a butcher
department; an onsite bakery; and an eatery for its customers that sells a limited
selection of simple foods like pizza, cold and hot sandwiches, pretzels, and soft ice
cream. A risk control representative who is assessing the property loss potential for
Mitchell's is most likely to focus on its - answerA risk control representative who is
assessing the property loss potential for Mitchell's is most likely to focus on its high-rack
storage, which can aid the spread of fire and hinder firefighting efforts.
Commercial property underwriters should be aware that self-service laundries, which
could operate on a 24-hour basis, are especially susceptible to which one of the
following perils? - answerTwenty-four hour self-service laundries are especially
susceptibility to vandalism.
Marty's Crab Shack is an owner-operated small casual restaurant on the bay shore in
Maryland that is best known for its seafood platters and sandwiches. Its deep-fried crab
cakes are said to be the best in the area. The building was built in 1987 of frame
