AU 61 Questions with CORRECT Answers
Question:
Which one of the following will burn readily and also presents a serious explosion
hazard?
Answer:
Metal dust.
Question:
Suzanne is using the COPE model to evaluate the property submission for Station
Sandwich Shop (SSS). She knows that the risk recently moved into a location that was
previously occupied by Gran's Gift Shop. It serves hot and cold food for breakfast and
lunch. SSS has a small seating area for about 10 people, but does mostly take-out
business. Which one of the following COPE elements is Suzanne evaluating when she
considers these factors?
Answer:
Occupancy.
Question:
Occupancy relates to how a building is used, including the operations and processes
conducted within the building. She also considers that the building was not originally
designed for an occupancy with cooking. Which one of the following types of property
ownership is available only to a husband and wife?
Answer:
Tenancy by the entirety.
Question:
Aside from determining the value of a building, there are other underwriting
considerations related to verifying commercial property values. Which one of the
following statements regarding verifying property values is true?
Answer:
Underground foundations and plumbing must be given special consideration when
determining property values.
, Question:
The fire department determined that an incendiary fire caused the damage to Shelton
Manufacturing's building. Which one of the following is the cause of an incendiary fire?
Answer:
Arson.
Question:
All of the following are causes of loss to property, EXCEPT:
Answer:
Transit.
Question:
A property location's probable maximum loss (PML) is:
Answer:
The underwriter's estimate of the largest loss likely to occur.
Question:
Underwriters can use a valuation guidebook or computer software supplied by an
appraisal company to make their own property value estimates. Which one of the
following is true regarding the valuation guidebooks or computer software?
Answer:
They can also be used for valuing building contents or equipment.
Question:
Which causes of loss present the greatest chance of frequency or severity.
Answer:
Julie is a commercial property underwriter. For commercial property insurance there are
other major causes of loss in addition to fire. When underwriting these other causes of
loss Julie must first decide:
Question:
Sarah is a commercial property underwriter. When working with a valuation guidebook
or computer software, she uses several factors to determine a property's value. Which
one of the following is a factor evaluated by underwriters to determine property value?
Answer:
Construction materials used.
Question:
Which one of the following will burn readily and also presents a serious explosion
hazard?
Answer:
Metal dust.
Question:
Suzanne is using the COPE model to evaluate the property submission for Station
Sandwich Shop (SSS). She knows that the risk recently moved into a location that was
previously occupied by Gran's Gift Shop. It serves hot and cold food for breakfast and
lunch. SSS has a small seating area for about 10 people, but does mostly take-out
business. Which one of the following COPE elements is Suzanne evaluating when she
considers these factors?
Answer:
Occupancy.
Question:
Occupancy relates to how a building is used, including the operations and processes
conducted within the building. She also considers that the building was not originally
designed for an occupancy with cooking. Which one of the following types of property
ownership is available only to a husband and wife?
Answer:
Tenancy by the entirety.
Question:
Aside from determining the value of a building, there are other underwriting
considerations related to verifying commercial property values. Which one of the
following statements regarding verifying property values is true?
Answer:
Underground foundations and plumbing must be given special consideration when
determining property values.
, Question:
The fire department determined that an incendiary fire caused the damage to Shelton
Manufacturing's building. Which one of the following is the cause of an incendiary fire?
Answer:
Arson.
Question:
All of the following are causes of loss to property, EXCEPT:
Answer:
Transit.
Question:
A property location's probable maximum loss (PML) is:
Answer:
The underwriter's estimate of the largest loss likely to occur.
Question:
Underwriters can use a valuation guidebook or computer software supplied by an
appraisal company to make their own property value estimates. Which one of the
following is true regarding the valuation guidebooks or computer software?
Answer:
They can also be used for valuing building contents or equipment.
Question:
Which causes of loss present the greatest chance of frequency or severity.
Answer:
Julie is a commercial property underwriter. For commercial property insurance there are
other major causes of loss in addition to fire. When underwriting these other causes of
loss Julie must first decide:
Question:
Sarah is a commercial property underwriter. When working with a valuation guidebook
or computer software, she uses several factors to determine a property's value. Which
one of the following is a factor evaluated by underwriters to determine property value?
Answer:
Construction materials used.
