AU 60 MISSED QUESTIONS
CHAPTER 1 QUESTIONS &
ANSWERS (GRADED A+)
Because underwriting guidelines usually specify the attributes of accounts that
insurers are willing to insure, insurers consider them
Choose one answer.
A. The tool for training underwriters.
B. Trade secrets.
C. The key to profitability.
D. The level of authority. - ANSWERTrade Secrets
Because underwriting guidelines usually specify the attributes of accounts that
insurers are willing to insure, insurers consider them trade secrets.
Maja, who has 29 years of experience as a professional liability underwriter, works in
the home office of Richley Insurance Company. Her primary responsibilities involve
formulating underwriting policy and revising underwriting guides for various lines of
professional liability insurance that will be used by personnel in the company's field
offices. Maja is functioning as a
Choose one answer.
A. Chartered underwriter.
B. Field underwriter.
C. Line underwriter.
D. Staff underwriter. - ANSWERD. Staff underwriter.
Maja is functioning as a staff underwriter.
Which one of the following statements is correct with regard to underwriting
guidelines?
Choose one answer.
A. Compliance with underwriting guidelines ensures selection of loss exposures
commensurate with planned rate levels.
, B. The purpose of developing underwriting guidelines is to ensure that an insurer
writes only above average accounts.
C. One purpose underwriting guidelines serve is to provide for flexible and
unstructured decisions.
D. Once effective underwriting guidelines are established, they need not be
evaluated or modified. - ANSWERA. Compliance with underwriting guidelines
ensures selection of loss exposures commensurate with planned rate levels.
Which one of the following is determined by a company's underwriting policy?
Choose one answer.
A. The underwriting authority the insurer grants its producers
B. Composition of the insurer's book of business
C. The market pursued by the insurer
D. The rating organization to which the insurer will belong - ANSWERB. Composition
of the insurer's book of business
Composition of the insurer's book of business is determined by a company's
underwriting policy.
While developing goals for its book of business, an insurer's staff underwriter
decides to increase its market share of workers compensation insurance in the
construction industry. This type of underwriting activity is known as
Choose one answer.
A. Reviewing and revising rating plans.
B. Developing underwriting guides.
C. Formulating underwriting policy.
D. Providing assistance to policyholders. - ANSWERC. Formulating underwriting
policy.
This type of underwriting activity is formulating an underwriting policy.
Specialty insurers such as those offering surety bonds, aviation insurance, and
livestock mortality insurance usually
Choose one answer.
A. Extend underwriting authority to producers.
B. Refer those lines to senior underwriters.
C. Use automated underwriting systems.
CHAPTER 1 QUESTIONS &
ANSWERS (GRADED A+)
Because underwriting guidelines usually specify the attributes of accounts that
insurers are willing to insure, insurers consider them
Choose one answer.
A. The tool for training underwriters.
B. Trade secrets.
C. The key to profitability.
D. The level of authority. - ANSWERTrade Secrets
Because underwriting guidelines usually specify the attributes of accounts that
insurers are willing to insure, insurers consider them trade secrets.
Maja, who has 29 years of experience as a professional liability underwriter, works in
the home office of Richley Insurance Company. Her primary responsibilities involve
formulating underwriting policy and revising underwriting guides for various lines of
professional liability insurance that will be used by personnel in the company's field
offices. Maja is functioning as a
Choose one answer.
A. Chartered underwriter.
B. Field underwriter.
C. Line underwriter.
D. Staff underwriter. - ANSWERD. Staff underwriter.
Maja is functioning as a staff underwriter.
Which one of the following statements is correct with regard to underwriting
guidelines?
Choose one answer.
A. Compliance with underwriting guidelines ensures selection of loss exposures
commensurate with planned rate levels.
, B. The purpose of developing underwriting guidelines is to ensure that an insurer
writes only above average accounts.
C. One purpose underwriting guidelines serve is to provide for flexible and
unstructured decisions.
D. Once effective underwriting guidelines are established, they need not be
evaluated or modified. - ANSWERA. Compliance with underwriting guidelines
ensures selection of loss exposures commensurate with planned rate levels.
Which one of the following is determined by a company's underwriting policy?
Choose one answer.
A. The underwriting authority the insurer grants its producers
B. Composition of the insurer's book of business
C. The market pursued by the insurer
D. The rating organization to which the insurer will belong - ANSWERB. Composition
of the insurer's book of business
Composition of the insurer's book of business is determined by a company's
underwriting policy.
While developing goals for its book of business, an insurer's staff underwriter
decides to increase its market share of workers compensation insurance in the
construction industry. This type of underwriting activity is known as
Choose one answer.
A. Reviewing and revising rating plans.
B. Developing underwriting guides.
C. Formulating underwriting policy.
D. Providing assistance to policyholders. - ANSWERC. Formulating underwriting
policy.
This type of underwriting activity is formulating an underwriting policy.
Specialty insurers such as those offering surety bonds, aviation insurance, and
livestock mortality insurance usually
Choose one answer.
A. Extend underwriting authority to producers.
B. Refer those lines to senior underwriters.
C. Use automated underwriting systems.
