AU 60 MISSED PRACTICE TEST EXAM PREMIUM
PREP PACK 2026 FULLY SOLVED MATERIAL
◉ Underwriters can minimize the effects of adverse selection by
Answer: Carefully selecting the applicants whose loss exposures
they are willing to insure.
◉ Sofie and the members of her homeowner's association have
homeowner's policies on their coastal dwellings. They have heard
that there are 11 named hurricane storms predicted for their coastal
area this year. Sofie and the homeowner association members plan
to increase their homeowner's property coverage limits to handle
their concern about the possible hurricane damage. Their action is
known as Answer: Adverse selection.
◉ An insurance company must have adequate policyholder surplus
if it wishes to Answer: Increase its written premium volume.
◉ The overarching purpose of underwriting is Answer: To develop
and maintain a profitable book of business.
◉ An insurance company needs to hire an employee with knowledge
of insurance policy forms and the ability to relate policy provisions
to the loss exposures of individual policyholders. The person will
also prepare premium quotes and process cancellations. Which one
, of the following employees would best suit the company's needs?
Answer: Field underwriter.
◉ 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
Answer: Corporate underwriter.
◉ Corporate underwrites share research of the market
responsibilities with actuarial and marketing departments. Research
includes an ongoing evaluation of which one of the following?
Answer: Optimal product mix in the book of business.
◉ The state advisory organization has developed a new
homeowners form which increases the limit of liability for personal
property in guns, silverware, jewelry, and boats. Jancy Insurance
Company is considering modifying this form for its own use. Which
one of the following members of Jancy staff would be involved in the
research and development of this new form? Answer: Data mining.
◉ Which one of the following is the most common use of predictive
modeling in the underwriting of small commercial accounts?
Answer: Rating.
PREP PACK 2026 FULLY SOLVED MATERIAL
◉ Underwriters can minimize the effects of adverse selection by
Answer: Carefully selecting the applicants whose loss exposures
they are willing to insure.
◉ Sofie and the members of her homeowner's association have
homeowner's policies on their coastal dwellings. They have heard
that there are 11 named hurricane storms predicted for their coastal
area this year. Sofie and the homeowner association members plan
to increase their homeowner's property coverage limits to handle
their concern about the possible hurricane damage. Their action is
known as Answer: Adverse selection.
◉ An insurance company must have adequate policyholder surplus
if it wishes to Answer: Increase its written premium volume.
◉ The overarching purpose of underwriting is Answer: To develop
and maintain a profitable book of business.
◉ An insurance company needs to hire an employee with knowledge
of insurance policy forms and the ability to relate policy provisions
to the loss exposures of individual policyholders. The person will
also prepare premium quotes and process cancellations. Which one
, of the following employees would best suit the company's needs?
Answer: Field underwriter.
◉ 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
Answer: Corporate underwriter.
◉ Corporate underwrites share research of the market
responsibilities with actuarial and marketing departments. Research
includes an ongoing evaluation of which one of the following?
Answer: Optimal product mix in the book of business.
◉ The state advisory organization has developed a new
homeowners form which increases the limit of liability for personal
property in guns, silverware, jewelry, and boats. Jancy Insurance
Company is considering modifying this form for its own use. Which
one of the following members of Jancy staff would be involved in the
research and development of this new form? Answer: Data mining.
◉ Which one of the following is the most common use of predictive
modeling in the underwriting of small commercial accounts?
Answer: Rating.
