AU 61 Questions with CORRECT Answers

AU 61 Questions with CORRECT Answers

Question:
A building owner rents its property to an auto dealership. The property is damaged and
temporarily unavailable for a period during which the dealership pays no rent. From the
building owner's perspective, this is an example of:
A. Lost income.
B. A cause of loss.
C. A period of restoration.
D. An extra expense.
Answer:
A. Lost income.


Question:
All of the following are financial consequences of property loss exposures, EXCEPT:
A. Extra expenses
B. Lost income
C. Property value reduction
D. Causes of loss
Answer:
D. Causes of loss


Question:
Property insurance policies usually cover some property that is not contained within the
building. For this reason, most property policies use which one of the following terms?
A. Floating property
B. Real property
C. Personal property
D. Contents
Answer:
C. Personal property

,Question:
Which one of the following is most likely to be considered real property as opposed to
personal property?
A. Property in transit
B. Furniture
C. Floating property
D. Wall-to-wall carpeting
Answer:
D. Wall-to-wall carpeting


Question:
To refer to items such as furniture and stock, most property insurance policies use the
term
A. Floating property.
B. Real property.
C. Personal property.
D. Contents.
Answer:
C. Personal property.


Question:
Which one of the following is considered to be personal property as opposed to real
property?
A. Land
B. Furniture
C. A building's elevator
D. A building's plumbing fixtures
Answer:
B. Furniture


Question:
In insurance terminology, property being shipped by aircraft is considered to be
A. Contents.
B. Floating property.
C. Property in the possession of others.
D. Property in transit.
Answer:
D. Property in transit.

,Question:
All of the following are components of a property loss exposure, EXCEPT:
A. The insurability of the property
B. The causes of loss
C. The financial consequences of a loss
D. The type of property exposed to loss
Answer:
A. The insurability of the property


Question:
A wedding photographer uses his camera equipment at several dozen different locations
each year. In insurance terminology, the camera equipment is considered to be
A. Contents.
B. Property in transit.
C. Property in the possession of others.
D. Floating property.
Answer:
D. Floating property.


Question:
In the context of property loss exposures, flood is considered to be all of the following,
EXCEPT:
A. A means by which property is damaged or destroyed
B. A cause of loss
C. An adverse financial consequence
D. A peril
Answer:
C. An adverse financial consequence


Question:
All of the following are causes of loss to property, EXCEPT:
A. Transit
B. Earthquake
C. Theft
D. Windstorm
Answer:
A. Transit

, Question:
The risk manager of a midsize manufacturing company would like several coverage
enhancements and a seamless approach to insurance for their Building and Business
Personal Property, Inland Marine and Crime insurance. What type of policy format would
best suit the risk manager's needs?
A. Commercial Package policy
B. Businessowners policy
C. Output policy
D. Broker policy
Answer:
C. Output policy


Question:
In addition to coverage parts, a commercial package policy includes which one of the
following forms?
A. Common Exclusions form
B. General Conditions form
C. General Forms List
D. Common Policy Conditions form
Answer:
D. Common Policy Conditions form


Question:
An insured requiring specialty commercial property coverage, such as flood insurance,
will most likely purchase which one of the following types of policies?
A. Package policy
B. Output policy
C. Businessowners policy
D. Monoline policy
Answer:
D. Monoline policy


Question:
The inspections and surveys condition clarifies that the insurer does not make
A. Inspections of books and records.
B. Safety inspections.
C. Health inspections.
D. Physical inspections.
Answer:
B. Safety inspections.