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Exam (elaborations)

AU 62 Exam Questions and Answers

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  • 2024/2025
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  • 2024/2025

AU 62 Exam Questions and Answers Which one of the following statements about owners and contractors protective liability coverage is true? - Answer-It covers the property owner for damage arising from the contractor's operations. A contractor was hired by a railroad to work on a bridge adjacent...

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  • October 16, 2024
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  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • 2024/2025
  • 2024/2025
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EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024




AU 62 Exam Questions and Answers

Which one of the following statements about owners and contractors protective liability

coverage is true? - Answer✔✔-It covers the property owner for damage arising from the

contractor's operations.


A contractor was hired by a railroad to work on a bridge adjacent to railroad tracks. Which one

of the following types of insurance coverage would best respond to claims against the railroad

arising out of the contractor's work? - Answer✔✔-A Railroad Protective Liability Coverage Form

purchased by the contractor


Best Builders is a commercial building contractor. The company often hires subcontractors to

perform certain activities on a job. According to the Commercial Lines Manual (CLM), the work

performed by subcontractors should be separately classified under Contractors - subcontracted

work (91583) only if which one of the following is true? - Answer✔✔-The subcontractor

maintains adequate separate insurance coverage


Martin, a commercial lines underwriter, is reviewing the general liability application for Shelton

Manufacturing. The company processes recyclable plastic into a variety of products. Which one

of the following guidelines should Martin follow when classifying Shelton Manufacturing's

operations? - Answer✔✔-Martin should base the classification on the intended use of the final

product.



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,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024


Which one of the following is one of the five classifications the Commercial Lines Manual (CLM)

uses to refine the general liability classification process? - Answer✔✔-Contracting or servicing


The ISO Commercial Lines Manual's definition of the premium base "gross sales" is the gross

amount of money charged by the named insured, by the concessionaires of the named insured,

or by others trading the insured's name for various specifically named sources of funds

collected. Which one of the following is one of those sources of funds? - Answer✔✔-Money

charged for rentals is part of gross sales


The ISO Commercial Lines Manual's definition of the premium base "gross sales" is the gross

amount of money charged by the named insured, by the concessionaires of the named insured,

or by others trading the insured's name for all of the following, EXCEPT: - Answer✔✔-Sales Tax


For general liability insurance purposes, in addition to salaries and wages, the ISO Commercial

Lines Manual's definition of "payroll" includes which one of the following? - Answer✔✔-

Overtime, holiday, and vacation pay.


All of the following correctly describe underwriting considerations when evaluating the extent

of an insured's liability exposure to the public, EXCEPT: - Answer✔✔-The presence of heavy

traffic automatically means that the premises has an excessive exposure.


Which one of the following is an underwriting consideration when evaluating the extent of an

insured's liability exposure to the public? - Answer✔✔-Differences in exposure between two

premises may be the result of location, type of business, and time in business.


Most of the claims covered by liability insurance are based on - Answer✔✔-Tort Law

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, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024


A mining company has a partial ceiling collapse in one of its mines. Investigators discover that

the company neglected maintenance of their safety systems which resulted in serious injury to

several of their employees during the mine's ceiling collapse. The legal liability imposed on the

company for the injury to its employees is based on - Answer✔✔-statute


Liability imposed by certain statutes, such as workers compensation laws, is an example of -

Answer✔✔-Strict Liability


A farmer is angry that the neighbor's children ride all-terrain vehicles (ATVs) across the farmer's

fields. The farmer sets a fire behind the storage shed for the ATVs in order to destroy the ATVs. A

child is in the shed when it burns and is injured. A court decides the farmer is liable for the

child's injury based on which one of the following? - Answer✔✔-Intentional tort


Certain doctrines in tort law allow a court to infer negligence without direct evidence. This

doctrine is based on the conclusion that the accident would not have happened if the action or

event causing the injury was under the defendant's exclusive control, and the accident

ordinarily would not have happened if the defendant exercised appropriate care. Courts will

often apply the doctrine of - Answer✔✔-Res ipsa loquitur.


Which one of the following is an action causing harm that would most likely result in the

application of the res ipsa loquitur doctrine? - Answer✔✔-A roll of tar paper falls off a building

at night and hits someone.




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