AU 60 - CHAPTER 2 QUESTIONS &
ANSWERS (RATED A+)
2 sources of info the underwriter has with a submission
2.3 - ANSWER1. Producer
2. Application
Why do you think underwriters rely on the producer more than any other source of
information?
2.3 - ANSWERA good relationship with a producer provides a source of information
an underwriter can trust. Through time spent working with the insurance applicant,
the producer builds a familiarity with both the client and the loss exposure being
insured.
- producer has firsthand knowledge of an account
Which one of the following Dun & Bradstreet report scores shows how promptly the
company pays its bills relative to term - ANSWERPaydex
What are the major sources of financial data? - ANSWERfinancial statements of
companies and reports from financial reporting services.
Why might a motor vehicle report (MVR) not be perfectly accurate? -
ANSWERMVRs are not perfectly accurate, and many accidents or violations never
appear on an MVR because of factors such as variations in reporting violations in
different jurisdictions or clerical errors in processing traffic citations.
What type of information is provided in a 10-K report? - ANSWERA 10-K report
provides not only extensive financial information on a publicly traded company, but
also a detailed history of the company; a description of current operations; and,
possibly, plans for the future.
Underwriters should occasionally order a credit report after the account has been
accepted and a policy issued. A credit report may be used to indicate the existence
of each of the following conditions, EXCEPT: - ANSWERAn account's propensity to
report claims
An underwriter concerned with an account's growth potential and ability to pay future
premiums should use which one of the following external sources? - ANSWERDun &
Bradstreet report
Alex has been a commercial underwriter for two years. He has received a multi-lines
submission for a company in an industry that he is not very familiar with. Which one
of the following external resources would give Alex a general description of the
ANSWERS (RATED A+)
2 sources of info the underwriter has with a submission
2.3 - ANSWER1. Producer
2. Application
Why do you think underwriters rely on the producer more than any other source of
information?
2.3 - ANSWERA good relationship with a producer provides a source of information
an underwriter can trust. Through time spent working with the insurance applicant,
the producer builds a familiarity with both the client and the loss exposure being
insured.
- producer has firsthand knowledge of an account
Which one of the following Dun & Bradstreet report scores shows how promptly the
company pays its bills relative to term - ANSWERPaydex
What are the major sources of financial data? - ANSWERfinancial statements of
companies and reports from financial reporting services.
Why might a motor vehicle report (MVR) not be perfectly accurate? -
ANSWERMVRs are not perfectly accurate, and many accidents or violations never
appear on an MVR because of factors such as variations in reporting violations in
different jurisdictions or clerical errors in processing traffic citations.
What type of information is provided in a 10-K report? - ANSWERA 10-K report
provides not only extensive financial information on a publicly traded company, but
also a detailed history of the company; a description of current operations; and,
possibly, plans for the future.
Underwriters should occasionally order a credit report after the account has been
accepted and a policy issued. A credit report may be used to indicate the existence
of each of the following conditions, EXCEPT: - ANSWERAn account's propensity to
report claims
An underwriter concerned with an account's growth potential and ability to pay future
premiums should use which one of the following external sources? - ANSWERDun &
Bradstreet report
Alex has been a commercial underwriter for two years. He has received a multi-lines
submission for a company in an industry that he is not very familiar with. Which one
of the following external resources would give Alex a general description of the
