CIP C120 UNDERWRITING ESSENTIALS
QUESTIONS AND ANSWERS LATEST 2025-2026
EXAM UPDATE
Mortgage - Answer-when the security is real property
Chattel Morgtage - Answer-when the security is personal property
Back dated policy - Answer-a policy that will become effective
retroactively after the applicant applies for it
Expert Systems - Answer-are computer software programs that guide
underwriters through a risk analysis, prompting them with questions and
directing them according to the answers generated by the facts of the
risk.
Hazard - Answer-a condition that may cause a peril to occur
Common Hazards - Answer-are hazards that are generally found in
most occupancies
Special Hazards - Answer-are hazards that uniquely characterize certain
occupancies
, Flash point - Answer-the flash point of a liquid is the minimum
temperature at which the liquid gives off sufficient vapours to form an
ignitable mixture with air near the surface of the liquid or within the test
vessel used
Automatic Sprinkler System - Answer-a network of specially designed
piping with sprinkler (automatic valves) together with a suitable water
supply and alarm devices so designed and assembled that, in case of a
fire, the area covered by the system, fire is automatically detected and
controlled while an alarm is sounded
Incipient Fire Stage - Answer-invisible products of combustion are
produced - there is no visible smoke or flame or any significant heat
present
Smouldering Fire Stage - Answer-the quantity of combustion particles
has increased to the point where they are visible as smoke
Flame Fire Stage - Answer-actual fire now exists - significant heat is
still not present but follows almost instantaneously
Heat Fire Stage - Answer-large amounts of heat, flame, smoke and toxic
gases are produced - this stage develops very quickly
Facultative Reinsurance - Answer-is negotiated between an insurer and
reinsurer on an individual risk or policy
QUESTIONS AND ANSWERS LATEST 2025-2026
EXAM UPDATE
Mortgage - Answer-when the security is real property
Chattel Morgtage - Answer-when the security is personal property
Back dated policy - Answer-a policy that will become effective
retroactively after the applicant applies for it
Expert Systems - Answer-are computer software programs that guide
underwriters through a risk analysis, prompting them with questions and
directing them according to the answers generated by the facts of the
risk.
Hazard - Answer-a condition that may cause a peril to occur
Common Hazards - Answer-are hazards that are generally found in
most occupancies
Special Hazards - Answer-are hazards that uniquely characterize certain
occupancies
, Flash point - Answer-the flash point of a liquid is the minimum
temperature at which the liquid gives off sufficient vapours to form an
ignitable mixture with air near the surface of the liquid or within the test
vessel used
Automatic Sprinkler System - Answer-a network of specially designed
piping with sprinkler (automatic valves) together with a suitable water
supply and alarm devices so designed and assembled that, in case of a
fire, the area covered by the system, fire is automatically detected and
controlled while an alarm is sounded
Incipient Fire Stage - Answer-invisible products of combustion are
produced - there is no visible smoke or flame or any significant heat
present
Smouldering Fire Stage - Answer-the quantity of combustion particles
has increased to the point where they are visible as smoke
Flame Fire Stage - Answer-actual fire now exists - significant heat is
still not present but follows almost instantaneously
Heat Fire Stage - Answer-large amounts of heat, flame, smoke and toxic
gases are produced - this stage develops very quickly
Facultative Reinsurance - Answer-is negotiated between an insurer and
reinsurer on an individual risk or policy
