AU 61 FLASH CARDS EXAM QUESTIONS AND ANSWERS ALL CORRECT
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Module
AU 61
Institution
AU 61
AU 61 FLASH CARDS EXAM QUESTIONS AND ANSWERS ALL CORRECT
What has the greatest effect on how different types of construction are classified? - Answer- Materials used for load-bearing components
A tool that underwriters can use to evaluate the effectiveness of building codes in general, and how...
AU 61 FLASH CARDS EXAM QUESTIONS
AND ANSWERS ALL CORRECT
What has the greatest effect on how different types of construction are classified? -
Answer- Materials used for load-bearing components
A tool that underwriters can use to evaluate the effectiveness of building codes in
general, and how vigorously they were enforced in a particular community, is - Answer-
Building Code Effectiveness Grading Schedule
Arthur requested a risk control survey to support his underwriting of a college dormitory.
Upon review of the survey report, he discovered that a number of problems had been
found, evidencing shoddy workmanship. The building had exposed electrical wiring,
stair landings constructed of particle board, and an inoperable sprinkler system. The
concrete block walls were penetrated by cables, without application of firestopping
material to restore the fire-resistance rating of the walls. Arthur declined to quote the
account, due to the building contractor's failure to comply with which one of the
following? - Answer- Performance codes
The COPE model is a tool commonly used by underwriters to evaluate loss exposures
related to hostile building fires and other causes of loss. Of the four interdependent risk
characteristics that an underwriter reviews when evaluating a property submission,
which one of the following is the most important factor? - Answer- Construction
An underwriter who is concerned about fire spreading due to the combustibility of
interior finish materials, as well as the risk of toxic smoke, is most likely to find which
one of the following design features favorable? - Answer- Small, narrow windows
spaced well apart
It is important for an underwriter to understand how the materials of a building are rated
for their fire resistance and flame spread ability. Flame spread refers to how readily
flames spread - Answer- Horizontally across the surfaces of a building's materials, such
as from one room to another
Building codes can provide an underwriter with information regarding the construction of
buildings erected under the provisions of those codes. Well-designed and properly
enforced building codes can reduce insured losses. A local ordinance that establishes
criteria that a building's structural components must meet is a - Answer- Performance
code
When evaluating a submission for a building more than 20 years old, some underwriters
request a risk control inspection to verify the condition of the key elements of the
building. Which one of the following is most likely what an underwriter wants to verify,
,even with an older building that has been adequately maintained? - Answer- That the
roof shingles and surfaces have been replaced within the last twenty to thirty years
If Ciara is most concerned about toxic fumes harming the school's occupants in the
event of a serious fire, which one of the following types of insulation will she least prefer
that the engineer find? - Answer- Sprayed-on cellular plastic foam
The age of a building is a key factor affecting the underwriting desirability of an account
for commercial property insurance. Which one of the following is true regarding the age
of a building from an underwriting perspective? - Answer- Older buildings are more
vulnerable to damage than newer buildings when faced with causes of loss such as
windstorm and hail.
The structural materials of a building and the arrangement of those components
determine a building's ability to withstand damage, including collapse. A property
insurance application for an 8-story office building states that it has curtain walls. By
this, the underwriter knows that the building's weight is - Answer- Supported by interior
load-bearing partition walls.
The interior finishing materials of a building affect the building's combustibility and the
underwriting desirability of an account. Once a finish is installed, a small fire can ignite
the interior finish and quickly engulf the entire room, so that even a small fire may
quickly generate and spread toxic gases throughout the building. This process is known
as - Answer- Flashover
Key construction design characteristics of a building can affect its underwriting
desirability. The building's height and shape, the number of fire divisions, and building
openings influence the ease with which fire can be controlled and extinguished. Which
one of the following is the most serious challenge firefighters face in fighting a fire in a
20-story high-rise building that has adequate risk control protection? - Answer- Gaining
access to the building to fight a fire from the inside
Fire doors can protect building openings that can compromise the integrity of a fire
division. They are classified by the National Fire Protection Association (NFPA) based
on their ability to resist fire. To be most effective, a fire door in a fire wall must be
capable of - Answer- Withstanding the same fire as the wall itself.
A property location's probable maximum loss (PML) is - Answer- The underwriter's
estimate of the largest loss likely to occur.
Underwriters must sometimes underwrite package policies for applicants that have
differing loss exposure levels by line of business. Which one of the following can be
used to ensure that enough premiums are paid to cover the higher hazard risks? -
Answer- Minimum premium levels for low hazard risks
Insureds sometimes purchase package policies to meet their insurance needs. The
underwriting approach can be affected by the type of package policies offered. Which
, one of the following types of package policies is used to reduce adverse selection and
often results in a premium discount for the insured? - Answer- Minimum combination
requirement
In insurance terminology, property being shipped by aircraft is considered to be -
Answer- Property in transit.
When working with a valuation guidebook or computer software, underwriters use
several factors to determine a property's value. Which one of the following is a factor
evaluated by underwriters to determine property value? - Answer- Construction
materials used
Verifying the values of property exposed to a loss is an essential part of commercial
property underwriting. For example, if the property values shown on a commercial
property submission are higher than the property's actual value, then - Answer- The
insured will pay for unnecessary coverage.
Underwriters can use a valuation guidebook or computer software supplied by an
appraisal company to make their own property value estimates. Which one of the
following is true regarding the valuation guidebooks or computer software? - Answer-
They can also be used for valuing building contents or equipment.
Which one of the following statements is true regarding amount subject and probable
maximum loss (PML) in evaluating property loss exposures? - Answer- Underwriters
often use the expression "within four walls" to explain the concept of amount subject.
One reason underwriters analyze the financial condition of a potential property insured
is to determine if the business is financially resilient and can cope with changing
economic cycles. Which one of the following statements is true regarding financial
condition and changing economic cycles for property insureds? - Answer- Economic
contraction can increase the probable frequency and severity of losses.
Which one of the following statements regarding package policy underwriting is true? -
Answer- The disadvantage of package underwriting is that underwriters cannot be
selective in the coverage offered to the applicant
A policy that covers two or more lines of business by combining ISO's Commercial
Lines coverage parts is - Answer- A commercial package policy.
In the context of property loss exposures, flood is considered to be all of the following,
EXCEPT: - Answer- An adverse financial consequence
A technology firm recently built a new production facility with unique property loss
exposures. Of the following possibilities, which one is most likely to address the firm's
needs? - Answer- A nonstandard form using provisions more favorable to the insured
than standard forms
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