AU 61 Questions with CORRECT Answers
Question:
Straight Through Processing (STP)
Answer:
Automated processing of an underwriting transaction from initial application through
policy processing
Question:
Flash point
Answer:
the lowest temperature at which a combustible liquid releases vapors that can be
ignited by a spark or flame
Question:
Fuel load (fire load)
Answer:
the expected maximum amount of combustible material in a given area of a building,
including both structural elements and contents, commonly expressed in terms of
weight of combustibles per square foot
Question:
Insurable Interest
Answer:
An interest in the subject of an insurance policy that is not unduly remote and that
would cause the interested party to suffer financial loss if an insured event occurred
Question:
fee simple estate
Answer:
a full ownership interest in property with the unconditional right to dispose of it
, Question:
joint tenancy
Answer:
a concurrently owned and undivided interest in an estate that transfers to a surviving
joint tenant upon the death of the other
Question:
remainder estate
Answer:
the right granted an individual (a remainderman) to hold an estate following the death
of the life tenant
Question:
remainderman
Answer:
the individual who acquires an estate following the death of a life tenant and who
acquires a fee simple estate in the property
Question:
replacement cost
Answer:
the cost to repair or replace property using new materials of like kind and quality with
no deduction for depreciation
Question:
Insurance to value
Answer:
insurance written for an amount approximating the full value of the asset(s) insured
Question:
Insurance-to-value provisions
Answer:
a provision in property insurance policies that encourages insureds to purchase an
amount of insurance that is equal to, or close to, the value of the covered property
Question:
Straight Through Processing (STP)
Answer:
Automated processing of an underwriting transaction from initial application through
policy processing
Question:
Flash point
Answer:
the lowest temperature at which a combustible liquid releases vapors that can be
ignited by a spark or flame
Question:
Fuel load (fire load)
Answer:
the expected maximum amount of combustible material in a given area of a building,
including both structural elements and contents, commonly expressed in terms of
weight of combustibles per square foot
Question:
Insurable Interest
Answer:
An interest in the subject of an insurance policy that is not unduly remote and that
would cause the interested party to suffer financial loss if an insured event occurred
Question:
fee simple estate
Answer:
a full ownership interest in property with the unconditional right to dispose of it
, Question:
joint tenancy
Answer:
a concurrently owned and undivided interest in an estate that transfers to a surviving
joint tenant upon the death of the other
Question:
remainder estate
Answer:
the right granted an individual (a remainderman) to hold an estate following the death
of the life tenant
Question:
remainderman
Answer:
the individual who acquires an estate following the death of a life tenant and who
acquires a fee simple estate in the property
Question:
replacement cost
Answer:
the cost to repair or replace property using new materials of like kind and quality with
no deduction for depreciation
Question:
Insurance to value
Answer:
insurance written for an amount approximating the full value of the asset(s) insured
Question:
Insurance-to-value provisions
Answer:
a provision in property insurance policies that encourages insureds to purchase an
amount of insurance that is equal to, or close to, the value of the covered property
