AU 61 EXAM REVIEW QUESTIONS AND ANSWERS ALL CORRECT
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Module
AU 61
Institution
AU 61
AU 61 EXAM REVIEW QUESTIONS AND ANSWERS ALL CORRECT
Which one of the following is the underwriter's prime concern with the Utility Services—Time Element endorsement? - Answer The expected frequency and severity of service outages
Often times a risk's causes of loss can be evaluated by the...
AU 61 EXAM REVIEW QUESTIONS
AND ANSWERS ALL CORRECT
Which one of the following is the underwriter's prime concern with the Utility Services—
Time Element endorsement? - Answer ✔ The expected frequency and severity of
service outages
Often times a risk's causes of loss can be evaluated by the characteristics that can be
examined via the data collected. This automated underwriting decision is referred to as
which one of the following? - Answer ✔ Straight through processing
The most recent scoring system used to evaluate public fire protection is called the -
Answer ✔ Fire Suppression Rating Schedule (FSRS).
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.
Large horizontal structures present a different type of problem than that present in a
high-rise building. The solution to large horizontal area fire problems is - Answer ✔ The
use of fire divisions
Which one of the following statements about determining the value at risk for business
income loss exposures is true? - Answer ✔ The current values in the business income
worksheet may be estimates depending on the timing of the insured's financial
statements.
In inspecting a restaurant, field underwriter Susan Warren noted that the storage area
was packed with paper products and cleaning supplies. The entire area was extremely
dirty and there was apparent grease accumulation on the cooking surfaces and on the
hoods above the grills and the deep fryers. Soiled laundry had been thrown into a
cardboard box near a large oven.Of the following items noticed by Susan, which one
presents the most serious exposure? - Answer ✔ deep fryer
Which one of the following is a principal way a hurricane will cause damage? - Answer
✔ flooding
, Jenna, an underwriter, has a number of submissions on her desk for review, all of which
are for buildings that are more than 20 years old. Which one of the following accounts is
Jenna most likely to find desirable with respect to its building age? - Answer ✔ A 20-
story suburban residential condominium building in a cold climate that was properly
constructed of joisted masonry materials. The building has been properly maintained
and meets local building codes. The building has a sloped shingled roof.
A small fire occurred in a local neighborhood damaging half of Gretta's Grocery Store.
Smoke damage occurred throughout the store. Health authorities are likely to do which
one of the following with the food items in the store? - Answer ✔ destroy the food items
Commercial property underwriters should be aware that self-service laundries, which
could operate on a 24-hour basis, are especially susceptible to which one of the
following perils? - Answer ✔ vandalism
The use of a Business Income (and Extra Expense) Coverage Form recognizes which
one of the following factors? - Answer ✔ Business income coverage and extra expense
coverage overlap to a certain extent.
Which one of the following major objectives of effective housekeeping is more important
for fire suppression than fire prevention? - Answer ✔ removing obstructions
When analyzing occupancy hazards, underwriters should consider the factor of
efficiency of management which includes which one of the following? - Answer ✔ risk
control programs
The keynote speaker at a public safety seminar, Aaron Sanders explains that heat
spread is often mysteriously misunderstood and is based on a variety of factors. As an
example, Aaron lights a candle and notes that it burns from the top down. Which one of
the following terms best describes this transfer of heat? - Answer ✔ conduction
Which one of the following statements is true regarding the construction of an insured
building and any exposing buildings? - Answer ✔ When the exposing building is taller
that the insured building, the chances of an exposure fire increase
Which one of the following statements is true regarding measures of potential loss
severity for property loss exposures? - Answer ✔ The amount subject for a location, as
estimated by any two underwriters with a common employer, should be consistent.
Even though it is impossible to tell when a business income loss might occur, which one
of the following would be the best assumption for a business to use if its earnings
fluctuate substantially from month to month? - Answer ✔ Assume the loss will happen at
the worst possible time.
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