AU 61 Questions with CORRECT Answers
Question:
Juan, a risk control representative, is conducting an assessment of the headquarters of
Westin Waste, a multi-county refuse collection and disposal company. Westin's offices
house several hundred employees on seven floors. The building was built ten years ago.
Most of the floors of the building are partitioned into cubicles with a large network
server in a separate room on the first floor. Which one of the following hazards is Juan
likely to pay particular attention while conducting his assessment, with respect to
potential fire loss?
Answer:
The office's electrical and wiring systems.
Question:
Pointe Woods is a two-year-old eight-story apartment building in Tennessee. It is a fully
sprinklered, modified fire-resistive building with electric forced-air heat. Which one of
the following plumbing risks is most likely to be a concern to Pointe Woods' property
insurance underwriter?
Answer:
Overflow of water from sinks, toilets, and bathtubs.
Question:
Overflow of water is a significant risk in residential occupancies, and an overflow on an
upper floor could severely damage all floors below. Suny, a property insurance
underwriter, is concerned about balancing the values at risk for his book of business. He
must pay careful attention to concentration and susceptibility of contents values, and
has been instructed by his management to avoid accepting institutional accounts that
represent highly susceptible contents, in order to achieve a better level of profitability
on the book. Which one of the following new business submissions is Suny most likely to
decline?
Answer:
The urban pediatric hospital is most likely to decline, because some institutional
contents like those in hospitals are highly susceptible to damage, and also represent
high values.
, Question:
Which one of the following terms refers to the ability of an item or material to ignite and
burn?
Answer:
Combustibility.
Question:
Hamilton Gallery is a retail store that sells furnishings and fixtures, and many decorative
items, for both home and office. Much of its stock is of modern design, with lots of metal
and glass. Restocking of its displays is done after hours, when customers are not in the
store. Which one of the following is likely to be a key consideration of a property
underwriter who is evaluating Hamilton Gallery's hazards?
Answer:
Housekeeping practices.
Question:
Housekeeping practices is likely to be a key consideration of a property underwriter,
because good housekeeping is the most vital deterrent to fires related to the hazards
described. Gas stations are a type of service industry occupancy that presents one of
the most obviously hazardous combinations of circumstances. Therefore, the National
Fire Protection Association (NFPA) offers many safety tips related to gas stations that
may help an underwriter assess the related hazards. For which one of the following
noted inspection items is an underwriter most likely to write a recommendation to the
insured?
Answer:
"Shut Off Engine" and "No Smoking" signs are posted inside a shop 30 feed from the gas
pumps.
Question:
Anaka, a risk control representative, has been asked to conduct a site inspection and
provide recommendations to Larson Company, a pulp and paper mill. Its pulp processing
operations primarily use biomass energy sources rather than fossil fuels or purchased
electrical energy to fuel its processing equipment. Both mechanical and chemical
methods are used to manufacture pulp, and then the finished pulp is dried and used to
produce cardboard and paper products. Which one of the following is likely to be a key
consideration for Anaka to advise her underwriter with respect to Larson's risk?
Answer:
Danger of static electricity from Larson's processing operations igniting dust particles
and causing a fire or explosion.
Question:
Juan, a risk control representative, is conducting an assessment of the headquarters of
Westin Waste, a multi-county refuse collection and disposal company. Westin's offices
house several hundred employees on seven floors. The building was built ten years ago.
Most of the floors of the building are partitioned into cubicles with a large network
server in a separate room on the first floor. Which one of the following hazards is Juan
likely to pay particular attention while conducting his assessment, with respect to
potential fire loss?
Answer:
The office's electrical and wiring systems.
Question:
Pointe Woods is a two-year-old eight-story apartment building in Tennessee. It is a fully
sprinklered, modified fire-resistive building with electric forced-air heat. Which one of
the following plumbing risks is most likely to be a concern to Pointe Woods' property
insurance underwriter?
Answer:
Overflow of water from sinks, toilets, and bathtubs.
Question:
Overflow of water is a significant risk in residential occupancies, and an overflow on an
upper floor could severely damage all floors below. Suny, a property insurance
underwriter, is concerned about balancing the values at risk for his book of business. He
must pay careful attention to concentration and susceptibility of contents values, and
has been instructed by his management to avoid accepting institutional accounts that
represent highly susceptible contents, in order to achieve a better level of profitability
on the book. Which one of the following new business submissions is Suny most likely to
decline?
Answer:
The urban pediatric hospital is most likely to decline, because some institutional
contents like those in hospitals are highly susceptible to damage, and also represent
high values.
, Question:
Which one of the following terms refers to the ability of an item or material to ignite and
burn?
Answer:
Combustibility.
Question:
Hamilton Gallery is a retail store that sells furnishings and fixtures, and many decorative
items, for both home and office. Much of its stock is of modern design, with lots of metal
and glass. Restocking of its displays is done after hours, when customers are not in the
store. Which one of the following is likely to be a key consideration of a property
underwriter who is evaluating Hamilton Gallery's hazards?
Answer:
Housekeeping practices.
Question:
Housekeeping practices is likely to be a key consideration of a property underwriter,
because good housekeeping is the most vital deterrent to fires related to the hazards
described. Gas stations are a type of service industry occupancy that presents one of
the most obviously hazardous combinations of circumstances. Therefore, the National
Fire Protection Association (NFPA) offers many safety tips related to gas stations that
may help an underwriter assess the related hazards. For which one of the following
noted inspection items is an underwriter most likely to write a recommendation to the
insured?
Answer:
"Shut Off Engine" and "No Smoking" signs are posted inside a shop 30 feed from the gas
pumps.
Question:
Anaka, a risk control representative, has been asked to conduct a site inspection and
provide recommendations to Larson Company, a pulp and paper mill. Its pulp processing
operations primarily use biomass energy sources rather than fossil fuels or purchased
electrical energy to fuel its processing equipment. Both mechanical and chemical
methods are used to manufacture pulp, and then the finished pulp is dried and used to
produce cardboard and paper products. Which one of the following is likely to be a key
consideration for Anaka to advise her underwriter with respect to Larson's risk?
Answer:
Danger of static electricity from Larson's processing operations igniting dust particles
and causing a fire or explosion.
