AU60 Evaluating Commercial
Underwriting Risks Exam -Solved
Adverse Selection - ANSWER-In general, the tendency for people with the greatest
probability of loss to be the ones most likely to purchase insurance.
Application - ANSWER-A legal document that provides information obtained directly
from an applicant requesting insurance and that an insurer can use for underwriting and
claim handling purposes.
artifical intelligence - ANSWER-Computer processing or output that simulates human
reasoning or knowledge.
Big Data - ANSWER-Sets of data that are too large to be gathered and analyzed by
traditional methods.
Book of Business - ANSWER-A group of policies with a common characteristic, such as
territory or type of coverage, or all policies written by a particular insurer or agency.
capacity - ANSWER-The amount of business an insurer is able to write, usually based
on a comparison of the insurer's written premiums to its policyholders' surplus.
Catastrophe Model - ANSWER-A type of computer program that estimates losses from
future potential catastrophic events.
Data Mining - ANSWER-The analysis of large amounts of data to find new relationships
and patterns that will assist in developing business solutions.
Declination - ANSWER-An insurer's refusal to provide coverage to an applicant who has
made a written request to the insurer or its producer, or a producer's refusal to forward
such a written request to an insurer.
Deep Learning - ANSWER-Insights into data use and processing gained by combining
artificial intelligence and machine learning. It is based on algorithms derived from
artificial neural networks.
Experience rating plan - ANSWER-A rating plan that increases or reduces the premium
for a future period based on the insured's own loss experience for a period in the recent
past.
Fee for service company - ANSWER-an independent contractor who specializes in loss
control work and who is paid for each loss control survey performed
Underwriting Risks Exam -Solved
Adverse Selection - ANSWER-In general, the tendency for people with the greatest
probability of loss to be the ones most likely to purchase insurance.
Application - ANSWER-A legal document that provides information obtained directly
from an applicant requesting insurance and that an insurer can use for underwriting and
claim handling purposes.
artifical intelligence - ANSWER-Computer processing or output that simulates human
reasoning or knowledge.
Big Data - ANSWER-Sets of data that are too large to be gathered and analyzed by
traditional methods.
Book of Business - ANSWER-A group of policies with a common characteristic, such as
territory or type of coverage, or all policies written by a particular insurer or agency.
capacity - ANSWER-The amount of business an insurer is able to write, usually based
on a comparison of the insurer's written premiums to its policyholders' surplus.
Catastrophe Model - ANSWER-A type of computer program that estimates losses from
future potential catastrophic events.
Data Mining - ANSWER-The analysis of large amounts of data to find new relationships
and patterns that will assist in developing business solutions.
Declination - ANSWER-An insurer's refusal to provide coverage to an applicant who has
made a written request to the insurer or its producer, or a producer's refusal to forward
such a written request to an insurer.
Deep Learning - ANSWER-Insights into data use and processing gained by combining
artificial intelligence and machine learning. It is based on algorithms derived from
artificial neural networks.
Experience rating plan - ANSWER-A rating plan that increases or reduces the premium
for a future period based on the insured's own loss experience for a period in the recent
past.
Fee for service company - ANSWER-an independent contractor who specializes in loss
control work and who is paid for each loss control survey performed
