AU 60 SPECIALTY EVALUATION SCRIPT
2026 ACTUAL EXAM VERSIONS A B WITH
DETAILED 100 PERCENT VERIFIED
ANSWERS GRADED A+
⩥ underwriting function serves these purposes. Answer: guarding
against adverse selection, ensuring adequate policyholders surplus, and
enforcing underwriting guidelines
⩥ policyholders surplus. Answer: under statutory accounting principles
(SAP), an insurer's total admitted assets minus its total liabilities
⩥ capacity. Answer: amount of business an insurer is able to write,
usually based on a comparison of the insurer's written premiums to its
policyholders surplus
⩥ underwriting guidelines. Answer: a written manual that
communications an insurer's underwriting policies and that specifies the
attributes of an account that an insurer is willing to insure
⩥ underwriting authority. Answer: the scope of decisions that an
underwriter can make without receiving approval from someone at a
higher level
, ⩥ line underwriter. Answer: underwriter who is primarily responsible for
implementing the steps in the underwriting process / work directly with
producers and applicants
⩥ staff underwriter. Answer: underwriter who is usually located in the
home office and who assists underwriting management with making and
implementing underwriting policy
⩥ effective account selection (4). Answer: 1. avoid adverse selection 2.
charging adequate premium 3. selecting better-than-average accounts 4.
rationing an insurer's available capacity to obtain an optimum spread of
loss exposures by location, class, size of risk, and line of business
⩥ manuscript policy. Answer: an insurance policy that is specifically
drafted according to terms negotiated between a specific insured (or
group of insureds) and an insurer
⩥ underwriting policy. Answer: translates an insurer's mission and goals
into specific strategies that, in turn, determine the composition of the
insurer's book of business
⩥ 3 types of markets. Answer: standard market (average-better than
average)
non-standard market (higher risk applications)
2026 ACTUAL EXAM VERSIONS A B WITH
DETAILED 100 PERCENT VERIFIED
ANSWERS GRADED A+
⩥ underwriting function serves these purposes. Answer: guarding
against adverse selection, ensuring adequate policyholders surplus, and
enforcing underwriting guidelines
⩥ policyholders surplus. Answer: under statutory accounting principles
(SAP), an insurer's total admitted assets minus its total liabilities
⩥ capacity. Answer: amount of business an insurer is able to write,
usually based on a comparison of the insurer's written premiums to its
policyholders surplus
⩥ underwriting guidelines. Answer: a written manual that
communications an insurer's underwriting policies and that specifies the
attributes of an account that an insurer is willing to insure
⩥ underwriting authority. Answer: the scope of decisions that an
underwriter can make without receiving approval from someone at a
higher level
, ⩥ line underwriter. Answer: underwriter who is primarily responsible for
implementing the steps in the underwriting process / work directly with
producers and applicants
⩥ staff underwriter. Answer: underwriter who is usually located in the
home office and who assists underwriting management with making and
implementing underwriting policy
⩥ effective account selection (4). Answer: 1. avoid adverse selection 2.
charging adequate premium 3. selecting better-than-average accounts 4.
rationing an insurer's available capacity to obtain an optimum spread of
loss exposures by location, class, size of risk, and line of business
⩥ manuscript policy. Answer: an insurance policy that is specifically
drafted according to terms negotiated between a specific insured (or
group of insureds) and an insurer
⩥ underwriting policy. Answer: translates an insurer's mission and goals
into specific strategies that, in turn, determine the composition of the
insurer's book of business
⩥ 3 types of markets. Answer: standard market (average-better than
average)
non-standard market (higher risk applications)
