AU 61 Questions with CORRECT Answers

AU 61 Questions with CORRECT Answers

Question:
While traveling on an interstate highway, Julia Carson noticed a large plume of smoke in
what appeared to be an isolated area. Julia pulled off at the next exit and called 911 to
reach a single emergency response center that dispatched local fire services to the
area. Which one of the following elements did Julia use?
Answer:
Fire detection


Question:
Floors, beams, and joists spread interior load to load-bearing components.
Answer:
horizonally, vertical


Question:
Are characteristics typical of all occupancies in a given class that can cause or
aggravate loss.
Answer:
Special hazards of the class


Question:
Often, the damage in fires arises not from the fire itself, but through secondary damage
from the suppression efforts. Which one of the following is a common secondary
damage resulting from fire suppression efforts?
Answer:
mold


Question:
Automatic sprinklers provide the most effective protection against loss by fire, however
underwriters should not overlook the sprinkler leakage loss exposure. Underwriting
considerations for evaluating an account for sprinkler leakage exposures include which
one of the following?
Answer:
Susceptibility of contents to water damage

,Question:
A Commercial Package Policy, whether monoline or multiline, includes which one of the
following forms?
Answer:
Common Policy Conditions form


Question:
Fuel load is usually expressed as weight of combustible material per
Answer:
square foot


Question:
Ice dams form
Answer:
On the edge of roofs and can cause water to penetrate roofs.


Question:
Aside from determining the value of a building, there are other underwriting
considerations related to verifying commercial property values. Which one of the
following statements regarding verifying property values is true?
Answer:
Underground foundations and plumbing must be given special consideration when
determining property values.


Question:
The Murphy Corporation earns most of its income during a peak season of three months.
In fact, during the remaining months, it actually operates at a loss. An underwriter has
determines that the probable maximum loss (PML) for the corporation is $600,000 and
its coinsurance basis is $550,000. Based on ISO underwriting rules, what is the
appropriate coinsurance percentage for Murphy?
Answer:
125

, Question:
While not all heat sources are ignition sources, many of the heat sources present in
manufacturing occupancies, such as electric motors, steam pressure vessels and
turbines, pose significant potential ignition sources. The potential for fire due to the use
of heat sources and the presence of flammables requires
Answer:
Strict adherence to fire safety codes


Question:
Underwriters should be concerned that the potential for a combustion explosion be
controlled, and the damage it can cause be mitigated. Maintaining a lean air-fuel
mixture for potentially explosive equipment is one effective protection in this area.
Maintaining this lean air-fuel mixture is which one of the following strategies for
controlling combustion explosions?
Answer:
Energy released.


Question:
Penn Woods Plaza, a strip shopping center in Pennsylvania, is classified as mill
construction. Its tenants include an accounting office, a Chinese restaurant, a pizza
parlor, a nail salon, and a dry cleaner. From a fire underwriting perspective, a property
underwriter is most likely to find this risk
Answer:
Desirable, because the structure would probably survive a severe fire.


Question:
Normally, the damage done in each act of vandalism or malicious mischief is
Answer:
incidental


Question:
Which one of the following statements is true regarding the monthly limit of indemnity
option?
Answer:
D. Under this option, the only way to cover the month with the highest income is to
purchase a total limit of 3, 4, or 6 times the highest monthly income.