AU 61 Questions with CORRECT Answers
Question:
Which of these ways to limit riot losses is now prohibited?
Answer:
-Recording security footage
Question:
-Using discretionary rating plans -Redlining Using deductibles
Answer:
Redlining is now prohibited in all states. Underwriters once refused coverage in areas in
which civil unrest seemed likely. This practice was termed "redlining" because the
subject areas were outlined in red on maps. To prevent this situation from recurring, all
states now prohibit this discriminatory practice.
Question:
Riot, Civil Commotion, Vandalism, and Terrorism Risk Control Measures:
Answer:
Automatic fire sprinklers, security guards, security cameras, alarms, locks, fences,
gates, window bars, exterior lighting, minimizing presence and visibility of
attractive/valuable property.
Question:
Individual Risk Premium Modification (IRPM) plan:
Answer:
A discretionary rating plan that allows the premium to be adjusted for risk factors that
the standard rate class does not fully reflect.
Question:
Market Conduct Examination:
Answer:
An analysis of an insurer's practices in 4 operational areas: sales and advertising,
underwriting, ratemaking, and claim handling.
, Question:
Through market conduct examinations, state insurance regulators do what?
Answer:
Investigate insurer files to ensure that all eligible accounts are included in discretionary
rating plans.
Question:
What are the most common types of explosions?
Answer:
Combustion explosions (ignition of flammable clouds) and pressure explosions (rupture
of confined spaces). Some of the most devastating combustion explosions are caused
by combustible dust, gas, or vapor. Common pressure vessels are water heaters,
boilers, and process equipment in manufacturing operations.
Question:
Boiling Liquid Expanding Vapor Explosion (BLEVE):
Answer:
An explosion that most commonly occurs when a tank containing a volatile liquid at the
bottom of the tank and a flammable gas at the top of the tank is heated to the point
where the tank ruptures.
Question:
What is the most common cause of building collapse?
Answer:
The weight of ice, snow, or sleet. Usually, underwriters specifically assess the potential
for this cause of loss only when the age, condition, maintenance, or construction of a
building indicates a potential problem. Roofs with large, open spans are more likely to
collapse under a snow load.
Question:
The most significant problem with pitched roofs is:
Answer:
The formation of ice dams, which result from melting snow and ice running down the
roof and freezing near the edge. Ice dams can prevent the roof from shedding ice, snow,
sleet, and water as intended. Water that isn't shed can then penetrate the roof,
damaging interior walls and ceilings.
Question:
Which of these ways to limit riot losses is now prohibited?
Answer:
-Recording security footage
Question:
-Using discretionary rating plans -Redlining Using deductibles
Answer:
Redlining is now prohibited in all states. Underwriters once refused coverage in areas in
which civil unrest seemed likely. This practice was termed "redlining" because the
subject areas were outlined in red on maps. To prevent this situation from recurring, all
states now prohibit this discriminatory practice.
Question:
Riot, Civil Commotion, Vandalism, and Terrorism Risk Control Measures:
Answer:
Automatic fire sprinklers, security guards, security cameras, alarms, locks, fences,
gates, window bars, exterior lighting, minimizing presence and visibility of
attractive/valuable property.
Question:
Individual Risk Premium Modification (IRPM) plan:
Answer:
A discretionary rating plan that allows the premium to be adjusted for risk factors that
the standard rate class does not fully reflect.
Question:
Market Conduct Examination:
Answer:
An analysis of an insurer's practices in 4 operational areas: sales and advertising,
underwriting, ratemaking, and claim handling.
, Question:
Through market conduct examinations, state insurance regulators do what?
Answer:
Investigate insurer files to ensure that all eligible accounts are included in discretionary
rating plans.
Question:
What are the most common types of explosions?
Answer:
Combustion explosions (ignition of flammable clouds) and pressure explosions (rupture
of confined spaces). Some of the most devastating combustion explosions are caused
by combustible dust, gas, or vapor. Common pressure vessels are water heaters,
boilers, and process equipment in manufacturing operations.
Question:
Boiling Liquid Expanding Vapor Explosion (BLEVE):
Answer:
An explosion that most commonly occurs when a tank containing a volatile liquid at the
bottom of the tank and a flammable gas at the top of the tank is heated to the point
where the tank ruptures.
Question:
What is the most common cause of building collapse?
Answer:
The weight of ice, snow, or sleet. Usually, underwriters specifically assess the potential
for this cause of loss only when the age, condition, maintenance, or construction of a
building indicates a potential problem. Roofs with large, open spans are more likely to
collapse under a snow load.
Question:
The most significant problem with pitched roofs is:
Answer:
The formation of ice dams, which result from melting snow and ice running down the
roof and freezing near the edge. Ice dams can prevent the roof from shedding ice, snow,
sleet, and water as intended. Water that isn't shed can then penetrate the roof,
damaging interior walls and ceilings.
