10/5/24, 10:55 PM AU 60 FINAL EXAM 2024-2025 ACTUAL EXAM 2 VERSIONS AND PRACTICE QUESTIONS EXAM COMPLETE QUESTIO…
AU 60 FINAL EXAM 2024-2025 ACTUAL EXAM 2
VERSIONS AND PRACTICE QUESTIONS EXAM
COMPLETE QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
Terms in this set (87)
To achieve profitability, C. Guarding against adverse selection
the underwriting function
serves which one of the
following additional
purposes?
Which one of the Line underwriter
following will draft a
manuscript policy or
endorsement that is
worded to address the
specific needs of the
insured
Depending on the type Encode underwriting guidelines.
of insurance, insurers use
automated underwriting
systems to
Specialty insurers such as Centralize underwriting authority.
those offering surety
bonds, aviation insurance,
and livestock mortality
insurance usually
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,10/5/24, 10:55 PM AU 60 FINAL EXAM 2024-2025 ACTUAL EXAM 2 VERSIONS AND PRACTICE QUESTIONS EXAM COMPLETE QUESTIO…
All of the following The higher an insurer's premium-to-surplus ratio, the
statements are true greater its ability to expand premium writings.v
regarding the factors
affecting the formation of
an insurer's underwriting
policy, EXCEPT:
Argot Stock Insurance Argot's return on equity using the GAAP approach is
Company's (Argot) net 6 percent, determined by net income ($1,000,000)
income is $1,000,000 and divided by average owners' equity ($16,500,000).
its average owners'
equity is $16,500,000.
Argot's average
policyholders' surplus is
$20,000,000. Using the
GAAP approach, which
one of the following is
Argot's return on equity?
Which one of the Composition of the insurer's book of business
following is determined
by a company's
underwriting policy?
A rating plan available to Schedule rating plan.
commercial insurance
applicants that awards
debits and credits to a
submission based on
specific categories is
known as a(n)
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, 10/5/24, 10:55 PM AU 60 FINAL EXAM 2024-2025 ACTUAL EXAM 2 VERSIONS AND PRACTICE QUESTIONS EXAM COMPLETE QUESTIO…
An underwriter is working Morale
with a loss control
representative on a new
opportunity. Given the
complexity of the
exposures, a physical
survey is conducted by
the loss control
representative, and a
formal report is
prepared. The report
reveals that the insured
owns several unattended
properties, and that they
were unlocked when the
loss control
representative
conducted the survey.
This failure to properly
secure an unattended
building would be an
indicator to the
underwriter of which one
of the following types of
hazard?
Which one of the Combined ratio
following is a financial
measure of underwriting
performance?
Which one of the Selection standards for underwriters usually support
following statements is overall underwriting goals and are evaluated during
correct regarding audits.
nonfinancial measures of
underwriting results?
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AU 60 FINAL EXAM 2024-2025 ACTUAL EXAM 2
VERSIONS AND PRACTICE QUESTIONS EXAM
COMPLETE QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
Terms in this set (87)
To achieve profitability, C. Guarding against adverse selection
the underwriting function
serves which one of the
following additional
purposes?
Which one of the Line underwriter
following will draft a
manuscript policy or
endorsement that is
worded to address the
specific needs of the
insured
Depending on the type Encode underwriting guidelines.
of insurance, insurers use
automated underwriting
systems to
Specialty insurers such as Centralize underwriting authority.
those offering surety
bonds, aviation insurance,
and livestock mortality
insurance usually
https://quizlet.com/952795861/au-60-final-exam-2024-2025-actual-exam-2-versions-and-practice-questions-exam-complete-questions-with-detai… 1/25
,10/5/24, 10:55 PM AU 60 FINAL EXAM 2024-2025 ACTUAL EXAM 2 VERSIONS AND PRACTICE QUESTIONS EXAM COMPLETE QUESTIO…
All of the following The higher an insurer's premium-to-surplus ratio, the
statements are true greater its ability to expand premium writings.v
regarding the factors
affecting the formation of
an insurer's underwriting
policy, EXCEPT:
Argot Stock Insurance Argot's return on equity using the GAAP approach is
Company's (Argot) net 6 percent, determined by net income ($1,000,000)
income is $1,000,000 and divided by average owners' equity ($16,500,000).
its average owners'
equity is $16,500,000.
Argot's average
policyholders' surplus is
$20,000,000. Using the
GAAP approach, which
one of the following is
Argot's return on equity?
Which one of the Composition of the insurer's book of business
following is determined
by a company's
underwriting policy?
A rating plan available to Schedule rating plan.
commercial insurance
applicants that awards
debits and credits to a
submission based on
specific categories is
known as a(n)
https://quizlet.com/952795861/au-60-final-exam-2024-2025-actual-exam-2-versions-and-practice-questions-exam-complete-questions-with-detai… 2/25
, 10/5/24, 10:55 PM AU 60 FINAL EXAM 2024-2025 ACTUAL EXAM 2 VERSIONS AND PRACTICE QUESTIONS EXAM COMPLETE QUESTIO…
An underwriter is working Morale
with a loss control
representative on a new
opportunity. Given the
complexity of the
exposures, a physical
survey is conducted by
the loss control
representative, and a
formal report is
prepared. The report
reveals that the insured
owns several unattended
properties, and that they
were unlocked when the
loss control
representative
conducted the survey.
This failure to properly
secure an unattended
building would be an
indicator to the
underwriter of which one
of the following types of
hazard?
Which one of the Combined ratio
following is a financial
measure of underwriting
performance?
Which one of the Selection standards for underwriters usually support
following statements is overall underwriting goals and are evaluated during
correct regarding audits.
nonfinancial measures of
underwriting results?
https://quizlet.com/952795861/au-60-final-exam-2024-2025-actual-exam-2-versions-and-practice-questions-exam-complete-questions-with-detai… 3/25
