AU60 Latest 2025 Study Questions & Answers
Policyholder Surplus (PHS)
assets of a policyholder-owned insurance company (also called a mutual insurance company)
minus its liabilities. Used to increase Written Premuim Value.
Underwrites use:
Data Aggregation, Processing Technologies, Predictive Modeling, Catastrophe Models, and
Telematics.
Steps in underwriting Process:
1. Evaluate
2. Develop alternatives
3. Select Alternatives
4. Determine premiums
5. Implement decisions
6. Monitor decisions.
Field Underwriters
Select Insureds, Ensure accurate classification and pricing, provide coverage, manage the book
of business, support producer, and support marketing.
Corporate Underwriters
Research market, formulate underwriting policy, revise guidelines, develop coverage forms,
review rates, educate and train, arrange reinsurance, and conduct audits.
Manuscript Policy
Specific Policy drafted according to terms negotiated between insured and insurer.
Internet of Things (IoT)
A network of objects that transmit data to computers
, artificial intelligence
A scientific field that focuses on creating machines capable of performing activities that require
intelligence when they are done by people.
Machine Learning
A type of artificial intelligence that leverages massive amounts of data so that computers can
improve the accuracy of actions and predictions on their own without additional programming.
Deep Learning
Processing gained by A.I. and Machine Learning
Data Mining
Analysis of large pools of data to find patterns and rules that can be used to guide decision-
making and predict future behavior.
Termination
Insurer cancels the policy
Market Conduct Examination
An analysis of an insurer's practices in four operational areas: sales and advertising,
underwriting, rate making, and claim handling. Used for Misclassification of risk, Improper
cancellations, and inaccurate fillings of rates and forms. performed by DOI.
Premium-to-surplus ratio
A capacity ratio that indicates an insurer's financial strength by relating net written premiums
to policyholders' surplus
Two most important things on application
Loss history and prior insurance
Two most important things IN GENERAL
Policyholder Surplus (PHS)
assets of a policyholder-owned insurance company (also called a mutual insurance company)
minus its liabilities. Used to increase Written Premuim Value.
Underwrites use:
Data Aggregation, Processing Technologies, Predictive Modeling, Catastrophe Models, and
Telematics.
Steps in underwriting Process:
1. Evaluate
2. Develop alternatives
3. Select Alternatives
4. Determine premiums
5. Implement decisions
6. Monitor decisions.
Field Underwriters
Select Insureds, Ensure accurate classification and pricing, provide coverage, manage the book
of business, support producer, and support marketing.
Corporate Underwriters
Research market, formulate underwriting policy, revise guidelines, develop coverage forms,
review rates, educate and train, arrange reinsurance, and conduct audits.
Manuscript Policy
Specific Policy drafted according to terms negotiated between insured and insurer.
Internet of Things (IoT)
A network of objects that transmit data to computers
, artificial intelligence
A scientific field that focuses on creating machines capable of performing activities that require
intelligence when they are done by people.
Machine Learning
A type of artificial intelligence that leverages massive amounts of data so that computers can
improve the accuracy of actions and predictions on their own without additional programming.
Deep Learning
Processing gained by A.I. and Machine Learning
Data Mining
Analysis of large pools of data to find patterns and rules that can be used to guide decision-
making and predict future behavior.
Termination
Insurer cancels the policy
Market Conduct Examination
An analysis of an insurer's practices in four operational areas: sales and advertising,
underwriting, rate making, and claim handling. Used for Misclassification of risk, Improper
cancellations, and inaccurate fillings of rates and forms. performed by DOI.
Premium-to-surplus ratio
A capacity ratio that indicates an insurer's financial strength by relating net written premiums
to policyholders' surplus
Two most important things on application
Loss history and prior insurance
Two most important things IN GENERAL
