EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
AU 60 Sample Questions with Correct
Answers
The purpose of underwriting is to - Answer✔✔-Develop and maintain a profitable book of
business for the insurer
Underwriters can best minimize the effects of adverse selection by - Answer✔✔-Carefully
selecting the applicants whose loss exposures they are willing to insure
Which one of the following is the term used to refer to a situation that occurs because people
with the greatest probability of loss are the ones most likely to purchase insurance? -
Answer✔✔-Adverse selection
The principal purpose of underwriting is to - Answer✔✔-Develop and maintain a profitable
book of business for the insurer.
To achieve profitability, the underwriting process serves what additional purpose? - Answer✔✔-
Guarding against adverse selection
Maja, who has 29 years of experience as a professional liability underwriter, works in the home
office of Richley Insurance Company. Her primary responsibilities involve formulating
underwriting policy and revising underwriting guides for various lines of professional liability
Page 1/7
, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
insurance that will be used by personnel in the company's field offices. Maja is functioning as a -
Answer✔✔-Corporate underwriter.
Corporate underwriters share research of the market responsibilities with actuarial and
marketing departments. Research includes an ongoing evaluation of - Answer✔✔-Optimal
product mix in the book of business
While developing goals for its book of business, an insurer's corporate underwriter decides to
increase its market share of workers compensation insurance in the construction industry. This
type of underwriting activity is known as - Answer✔✔-Formulating underwriting policy.
Which one of the following tasks is the responsibility of a corporate underwriter as opposed to
a field underwriter? - Answer✔✔-Review and revise rating plans
Which one of the following types of emerging technology allows a risk management team to
continuously monitor jobsites, manufacturing facilities, vehicle performance, and employees'
proximity to hazardous work areas? - Answer✔✔-Sensors and telematics
During a mid-year review of one of her large accounts, Annette noticed that the frequency and
severity of auto losses had been trending downward over the past 18 months. When she
consulted with the account's risk management team, she learned that the insured had installed
telematics devices in many of their vehicles. This information would help support Annette's
decision to - Answer✔✔-Propose a premium reduction at renewal time.
Jane is Regional Manager for Goshen Mutual. The retention rate for her region's commercial
auto book has dropped by 10 percent over the last 18 months. Jane has asked an information
Page 2/7
AU 60 Sample Questions with Correct
Answers
The purpose of underwriting is to - Answer✔✔-Develop and maintain a profitable book of
business for the insurer
Underwriters can best minimize the effects of adverse selection by - Answer✔✔-Carefully
selecting the applicants whose loss exposures they are willing to insure
Which one of the following is the term used to refer to a situation that occurs because people
with the greatest probability of loss are the ones most likely to purchase insurance? -
Answer✔✔-Adverse selection
The principal purpose of underwriting is to - Answer✔✔-Develop and maintain a profitable
book of business for the insurer.
To achieve profitability, the underwriting process serves what additional purpose? - Answer✔✔-
Guarding against adverse selection
Maja, who has 29 years of experience as a professional liability underwriter, works in the home
office of Richley Insurance Company. Her primary responsibilities involve formulating
underwriting policy and revising underwriting guides for various lines of professional liability
Page 1/7
, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
insurance that will be used by personnel in the company's field offices. Maja is functioning as a -
Answer✔✔-Corporate underwriter.
Corporate underwriters share research of the market responsibilities with actuarial and
marketing departments. Research includes an ongoing evaluation of - Answer✔✔-Optimal
product mix in the book of business
While developing goals for its book of business, an insurer's corporate underwriter decides to
increase its market share of workers compensation insurance in the construction industry. This
type of underwriting activity is known as - Answer✔✔-Formulating underwriting policy.
Which one of the following tasks is the responsibility of a corporate underwriter as opposed to
a field underwriter? - Answer✔✔-Review and revise rating plans
Which one of the following types of emerging technology allows a risk management team to
continuously monitor jobsites, manufacturing facilities, vehicle performance, and employees'
proximity to hazardous work areas? - Answer✔✔-Sensors and telematics
During a mid-year review of one of her large accounts, Annette noticed that the frequency and
severity of auto losses had been trending downward over the past 18 months. When she
consulted with the account's risk management team, she learned that the insured had installed
telematics devices in many of their vehicles. This information would help support Annette's
decision to - Answer✔✔-Propose a premium reduction at renewal time.
Jane is Regional Manager for Goshen Mutual. The retention rate for her region's commercial
auto book has dropped by 10 percent over the last 18 months. Jane has asked an information
Page 2/7
