AU 60 Sample Questions And Answers

AU 60 Sample Questions And Answers
Apgrouppofppoliciespwithpapcommonpcharacteristic,psuchpaspapterritoryporptypepofpcoverage,p
orpallppoliciespwrittenpbypapparticularpinsurer,pproducer,porpagencypispreferredptopasp-
pCORRECTppANSWER-Apbookpofpbusiness.




ABCpInsurancepispconsideringpenteringpnewpstatespasppartpofpitspgrowthpplan.pThepexecutiv
espofpABCpdecidepnotptoppursuepnewpbusinesspinplow-
incomepareaspofpstatespandpprovidepunderwriterspwithpapmappindicatingpthepareaspfrompwhi
chptheyparepnotptopacceptpapplications.pThisppositionplikelypviolatespregulationspthatp-
pCORRECTppANSWER-

Constrainpinsurers'pabilityptopaccept,pmodify,porpdeclineplosspexposures.

AdampispanpanalystpconductingpapmarketpconductpexaminationpatpDEFpInsurancepinprespo
nseptopapconsumerpcomplaint.pDuringpthepcoursepofphispreview,phepdiscoverspthatpDEFphasp
failedptopapplypnewlypimplementedpunderwritingpandpratingpfactorsptoprenewals,pfailedptopus
epmutuallypexclusivepunderwritingpguidelinespforpthepcompany'spdifferentpprograms,pfailedpt
opusepcorrectpformspandprates,pandpfailedptopapplypunderwritingpguidelinespconsistentlypbyp
occasionallypallowingpproducerspexceptions.pWhichponepofptheseppracticespwillpAdampmos
tplikelypallowpthepinsurerptopcontinue?p-pCORRECTppANSWER-
Allowingpproducerspexceptionspinpsomepcases

Anpinsurancepcompanypmustphavepadequateppolicyholders'psurpluspifpitpwishesptop-
pCORRECTppANSWER-Increasepitspwrittenppremiumpvolume.




Anpinsurerpreceivesptwopautomobilepinsurancepapplications.pThepfirstpapplicantpispagep35,p
male,pandphaspapcleanpdrivingprecord.pThepsecondpapplicantpispagep35,pfemale,phasphadpthr
eepspeedingpviolationspandpappriorpaccident.pThepinsurerpacceptspbothprisks,pbutpchargespt
hepsecondpapplicantpaphigherppremium.pWhichponepofpthepfollowingpstatementspaboutpthisp
scenariopispcorrect?p-pCORRECTppANSWER-
Regulationspallowpthepinsurerptopchargepmorepforpinsuredspwithppoorpdrivingpexperience.

Aspapcommercialplinespunderwriter,pWilliampwouldpspendpmanyphourspreviewingpandpsum
marizingptheplossprunspthatpwereppartpofpapnewpbusinesspapplication.pHepcanpnowprelyponpap
computerptopdigitalizepandpsummarizepthoseplosspruns.pThispispanpexamplepofphowpunderwr
itingphaspbeenptransformedpbypwhichponepofpthepfollowingpadvancementspinptechnology?p-
pCORRECTppANSWER-Machineplearning

, Corporatepunderwriterspsharepresearchpofpthepmarketpresponsibilitiespwithpactuarialpandpm
arketingpdepartments.pResearchpincludespanpongoingpevaluationpofp-
pCORRECTppANSWER-Optimalpproductpmixpinpthepbookpofpbusiness




Duringpapgeneralpmarketpconductpexaminationpofpunderwriting,pexaminerspwouldplookpforpe
videncepofpallpofpthepfollowing,pEXCEPT:p-pCORRECTppANSWER-
Inconsistentpclaimppractices

Duringpapmid-
yearpreviewpofponepofpherplargepaccounts,pAnnettepnoticedpthatpthepfrequencypandpseverityp
ofpautoplossesphadpbeenptrendingpdownwardpoverptheppastp18pmonths.pWhenpshepconsulte
dpwithpthepaccount'spriskpmanagementpteam,psheplearnedpthatpthepinsuredphadpinstalledptel
ematicspdevicespinpmanypofptheirpvehicles.pThispinformationpwouldphelppsupportpAnnette'sp
decisionptop-pCORRECTppANSWER-Proposepappremiumpreductionpatprenewalptime.

Inpanpeffortptopcontrolpitsplosspexposures,pFurlongpDistributingpusespapnetworkpofpobjectspth
atptransmitpdataptopeachpotherpandptopcentralphubspthroughpthepinternet.pThispnetworkpispkn
ownpasp-pCORRECTppANSWER-ThepInternetpofpThings.

Inpdecidingpwhichpapplicantsptheyparepwillingptopinsure,pinsurancepunderwriterspneedptoprec
ognizepthepeffectspofpadversepselection.pWhichponepofpthepfollowingpispthepbestpexamplepofp
adversepselection?p-pCORRECTppANSWER-
Afterplearningpthatpapparticularlypactivephurricanepseasonpispexpected,pseveralphomeowner
spinpapcoastalpcommunitypincreaseptheplimitsponptheirpwindstormpcoverage.

JanepispRegionalpManagerpforpGoshenpMutual.pThepretentionpratepforpherpregion'spcommer
cialpautopbookphaspdroppedpbyp10ppercentpoverptheplastp18pmonths.pJanephaspaskedpanpinf
ormationptechnologyp(IT)pspecialistptophelppherpdeterminepcommonpcharacteristicspamongp
thepaccountspthatpareprenewing,pthosepthatparepnotprenewing,pandpthosepthatparepmostpprofi
table.pShepispalsoptryingptopdeterminepifptherepispapcommonpreasonpwhypaccountsparepnotpre
newing.pWhichponepofpthepfollowingpformspofpanalysispwillpthepITpspecialistpuseptophelppJane
pfocusponpimprovingpherpautopretention?p-pCORRECTppANSWER-Datapmining




Maja,pwhophasp29pyearspofpexperiencepaspapprofessionalpliabilitypunderwriter,pworkspinpthep
homepofficepofpRichleypInsurancepCompany.pHerpprimarypresponsibilitiespinvolvepformulati
ngpunderwritingppolicypandprevisingpunderwritingpguidespforpvariousplinespofpprofessionalpli
abilitypinsurancepthatpwillpbepusedpbyppersonnelpinpthepcompany'spfieldpoffices.pMajapispfunc
tioningpaspap-pCORRECTppANSWER-Corporatepunderwriter.

Sofie,pappropertypunderwriterpforpCintriellpInsurancepCompanypispreviewingpapnewphomeow
nerspapplication.pSofiephaspchangedpthepprotectionpclassptopunprotected,paspthepfirepprotec
tionpclassplistedpbypthepproducerpispanpeightpandpispincorrect.pWhichponepofpthepfollowingplin
epunderwriterpactivitiespispSofiepperforming?p-pCORRECTppANSWER-
Classifyingpandppricingpaccounts