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Au 61 Simulated Latest 2024 Exam Questions and Correct Answers (Already Graded A+)
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Au 61 Simulated Latest 2024 Exam Questions and Correct Answers (Already Graded A+) Which one of the following is the leading cause of fires in hospitals, medical facilities, and educational institutions? Select one: A. Cooking equipment B. Flammable liquids and gases C. Lighting equipment D...

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  • September 22, 2024
  • 14
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • au 61
  • au 61 simulated latest 2024 exam questions

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Au 61 Simulated Latest 2024 Exam
Questions and Correct Answers
(Already Graded A+)
Which one of the following is the leading cause of fires in hospitals, medical facilities,
and educational institutions?
Select one:
A. Cooking equipment
B. Flammable liquids and gases
C. Lighting equipment
D. Smoking - Answer ✔ A. Cooking equipment

Rose is a property underwriter considering the application of a small clothing store in a
strip mall. The stores in the strip mall are all ornate brick structures. The clothing store is
located between a bagel shop and t-shirt shop. The stores are in separate fire divisions,
and the fire department is located only a few blocks from the area, but Rose learned
that there are doorways connecting all the stores and the roof over the stores is made of
a combustible material. Which one of the following would be a reasonable way for Rose
to handle the application?
Select one:
A. Accept the risk only on a multi-year policy to increase earned premium
B. Decline the application due to exposure to fire risk
C. Increase the premium by 25% to cover the possibility and severity of a fire loss
D. Treat the brick buildings as frame construction instead of brick - Answer ✔ D. Treat
the brick buildings as frame construction instead of brick

XYZ Laboratories has a probable maximum loss of $1,700,000. The coinsurance basis
for XYZ is $2,000,000. What would be the adequate business income coverage limit for
XYZ Laboratories that provides insurance to value?
Select one:
A. $1,530,000
B. $1,700,000
C. $1,800,000
D. $2,000,000 - Answer ✔ C. $1,800,000
$1,700,000 ÷ $2,000,000 = .85%. Round this up to the next highest coinsurance
percentage, 90%. Multiply this by the coinsurance basis = 0.90 x $2,000,000 =
$1,800,000.

, Anita is a commercial property underwriter reviewing an application for Rhodes
Marketing. Due to rapid growth, the company has recently moved into a newly
renovated warehouse in an up and coming neighborhood. Rhodes Marketing has three
shifts of employees that occupy a large open area. The employees share work stations
and require only a computer and a headset. They also have a separate area for the
main computer equipment and server. Anita has requested additional information about
the wiring and electrical equipment being used by Rhodes Marketing. Which one of the
following is Anita most concerned about when evaluating this office exposure?
Select one:
A. Fuel load
B. Special hazards
C. Moral hazards
D. Ignition sources - Answer ✔ D. Ignition sources

Alex is underwriting the property application for Carla's Chocolate Shop. The shop is
located in a single-story shopping center with masonry construction. While the fire
exposure for the chocolate shop is relatively low, there are a variety of other tenants in
the shopping center. Alex is concerned about a fire spreading to Carla's Chocolate
Shop from one of the other tenants. Which one of the following construction features
would be desirable for this type of building to help prevent the spread of fire from one
tenant to another?
Select one:
A. Firewalls with parapets
B. Curtain boards with roof vents
C. Fire doors with fusible link
D. Non-load-bearing partition walls - Answer ✔ A. Firewalls with parapets

Malvern LLC is being considered for a property policy. They are located in an area that
has been susceptible to lightning losses. Which one of the following would also
contribute to the underwriter's concern that the potential insured may suffer a lightning
loss?
Select one:
A. The headquarters is located in a 15-story building just outside of town with an
observatory deck for visitors.
B. Malvern LLC has been providing materials to construct toys for elementary education
centers across the United States.
C. They have two similar locations located 100 miles apart from each other.
D. Malvern LLC has installed a lightning rod on the roof of their building. - Answer ✔ A.
The headquarters is located in a 15-story building just outside of town with an
observatory deck for visitors.

Grace, a commercial property underwriter, is evaluating a local food market for property
coverage. The grocery store is located in a free standing building and has its own
parking lot. Which one of the following combustibility ratings should Grace assign to the
contents of the food market?
Select one:

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