AU 60 Test Qs Chpts. 1-4 Questions And Answers

AU 60 Test Qs Chpts. 1-4 Questions And
Answers
Apgrouppofppoliciespwithpapcommonpcharacteristic,psuchpaspapterritoryporptypepofpcoverage,p
orpallppoliciespwrittenpbypapparticularpinsurer,pproducer,porpagencypispreferredptopasp-
pCORRECTppANSWER-Apbookpofpbusiness.




Apmanagementpcontrolptoolpusedptopdeterminepwhetherplinepunderwritersparepproperlypimpl
ementingpunderwritingppolicypispknownpaspanpunderwritingp-pCORRECTppANSWER-Audit.

AaronpispappropertypunderwriterpforpCromleypInsurancepCompanyp(Cromley).pHepreceivedp
apnewpbusinesspsubmissionpforpapcompanypthatpcurrentlyphaspautopcoveragepwithpCromley
.pThepproducerpispexpectingpAaronptopofferpapquickpproposalponptheppropertypcoveragepbec
ausephephaspaccessptopthepinformationpinpthepautopfile.pWhichponepofpthepfollowingpimporta
ntpsourcespofppropertypunderwritingpinformationpwouldpbepmissingpfrompthepautopfile?p-
pCORRECTppANSWER-Appraisalpofpvalues




Aaron,papseniorpproducerpforpBlithepInsurancepCompanyp(Blithe)phaspoverp15pyearspexperi
encepinpthepfield.pHepknowspBlithe'spunderwritingpguidelinespandpispfamiliarpwithptheptypepofp
businesspBlithepwants.pHeptakesppridepinptheplosspratiopproducedpbyphispofficepandpalsoppro
ducedpbypBlithepaspapcompany.pHepoftenptrainspnewpagentspinphispofficepbecausepofphisplow
prejectionpratiopofpapplicationsphepwrites.pHepispknownpaspapfront-

linepunderwriterpforpBlithe.pWhichponepofpthepfollowingpispapbenefitpofpAaron'spfieldpunderwrit
ing?p-pCORRECTppANSWER-
SavespBlithepfromphavingptopevaluatepaccountspthatptheypwillpultimatelypreject

ABCpInsurancepCompany'spratiopofppremiumsptopsurpluspisp2ptop1.pIfpthepstateprequirementp
wherepABCptransactspbusinesspisp3ptop1,pthenpABCp-pCORRECTppANSWER-
Ispmeetingpthepstate'spsurplusprequirement.

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

Alexphaspbeenpapcommercialpunderwriterpforptwopyears.pHephaspreceivedpapmulti-
linespsubmissionpforpapcompanypinpanpindustrypthatphepispnotpverypfamiliarpwith.pWhichponep
ofpthepfollowingpexternalpresourcespwouldpgivepAlexpapgeneralpdescriptionpofpthepindustry'sp
operationspandptheplevelpofphazardpbyplinepofpinsurance?p-pCORRECTppANSWER-
Best'spUnderwritingpGuide

Allpofpthepfollowingparepdisadvantagespofptheppartnershipptypepofpbusinesspownership,pEXC
EPT:p-pCORRECTppANSWER-Partnerspareptaxedppersonallypforppartnershippprofits.

Allpofpthepfollowingpareptruepregardingpterminationpofpinsurancepcoverage,pEXCEPT:p-
pCORRECTppANSWER-Itpcanpbepdonepatpanyptimepwithoutpnoticeptopthepinsured.




Allpofpthepfollowingpstatementspareptruepregardingpthepfactorspaffectingpthepformationpofpanpi
nsurer'spunderwritingppolicy,pEXCEPT:p-pCORRECTppANSWER-
Thephigherpanpinsurer'sppremium-to-
surpluspratio,pthepgreaterpitspabilityptopexpandppremiumpwritings.

Anpapplicantpforpcommercialppropertypinsurancepispfoundpunacceptablepbypanpunderwriterp
dueptopthepnaturepofpitspoperationspandpthepconstructionpofpthepbuildingpitpoccupies.pIfpthepa
pplicantpinstallspanpautomaticpfire-
extinguishingpsprinklerpsystem,pthepunderwriterpwillpapprovepthepapplication.pThisptypepofpu
nderwritingpmodificationpispknownpasp-pCORRECTppANSWER-
Requiringplosspcontrolpmeasures.

Anpinsurancepcompanypmustphavepadequateppolicyholders'psurpluspifpitpwishesptop-
pCORRECTppANSWER-Increasepitspwrittenppremiumpvolume.




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

Anpunderwriterphaspbeenpaskedptopreviewpapcommercialppackagepapplicationpforpapfour-
storypapartmentpbuilding.pWhichponepofpthepfollowingppiecespofpinformationpwouldpthepunde
rwriterpconsiderpessential?p-pCORRECTppANSWER-Buildingpconstruction

Anpunderwriterpispworkingpwithpaplosspcontrolprepresentativeponpapnewpopportunity.pGivenpt
hepcomplexitypofpthepexposures,papphysicalpsurveypispconductedpbyptheplosspcontrolprepres