AU 60 ACTUAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSWERS) ALREADY GRADED A+ NEWEST VERSION
5 views 0 purchase
Course
AU 60
Institution
AU 60
AU 60 ACTUAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSWERS) ALREADY GRADED A+ NEWEST VERSION
As an underwriter, Liz knows that her success relies on collaboration with multiple departments. Which one of the following is the first step that Liz should take to foste...
AU 60 ACTUAL EXAM QUESTIONS
AND CORRECT DETAILED
ANSWERS WITH RATIONALES
(VERIFIED ANSWERS) ALREADY
GRADED A+ NEWEST VERSION
As an underwriter, Liz knows that her success relies on collaboration with multiple
departments. Which one of the following is the first step that Liz should take to foster
collaboration among the different department managers?
Select one:
A. Liz should begin by developing an understanding of each department and how their
work processes interact.
B. Liz should begin by determining how each of the managers can help her succeed.
C. Liz should begin by getting to know each of the department managers on a personal
level.
D. Liz should begin by asking the other underwriters about the different department
managers. - Answer ✔ A. Liz should begin by developing an understanding of each
department and how their work processes interact.
Collaboration requires an active commitment from every group member to achieve a
single goal shared by the entire group, it's not about achieving individual goals.
The name of a corporation should appear on a policy declarations page because the
corporation
Select one:
A. Represents a larger risk exposure than a sole proprietorship.
B. Has an identity that is separate from that of its owners.
C. Often has subsidiaries creating additional exposures.
D. Is comprised of multiple entities. - Answer ✔ B. Has an identity that is separate from
that of its owners.
Eileen has been a commercial lines underwriter at Goshen Mutual for 3 years. She was
recently reassigned to a new territory and is receiving applications for types of business
operations that are not familiar to her. Which one of the following tools could Eileen use
to get a description of what businesses in a particular classification usually do and the
, processes and equipment they tend to use, as well as the level of risk associated with
each line of insurance?
Select one:
A. ISO Premium Audit Advisory Service Guide
B. ISO Commercial Lines Manual
C. North American Industry Classification System
D. Best's Underwriting Guide - Answer ✔ D. Best's Underwriting Guide
The Best's Underwriting Guide provides a description of what businesses in a
classification generally do, and the equipment and processes they use. It also describes
the risks associated with each line of insurance coverage typically provided. NAICS
guides provide detailed descriptions of business activities and help an underwriter make
sure that a business is properly classified.
Which one of the following statements is correct regarding ratemaking methods?
Select one:
A. The pure premium ratemaking method is the oldest ratemaking method.
B. Insurers entering a new line of business use the loss ratio method to set their initial
rates.
C. The judgment ratemaking method is used when limited data are available.
D. The loss ratio ratemaking method does not factor in profits and contingencies. -
Answer ✔ C. The judgment ratemaking method is used when limited data are available.
Suzanne is a commercial lines underwriter. During the risk selection process, she gives
stronger consideration to companies that use wearable sensors and telematics devices
to help control their loss exposures. These items are examples of which one of the
following types of technological advancements?
Select one:
A. Regulatory devices
B. Data mining devices
C. Smart products
D. Machine learning - Answer ✔ C. Smart products
While trend analysis can be used on various financial statements, it is most commonly
applied to
Select one:
A. Balance sheets.
B. Changes in equity statements.
C. Cash flow statements.
D. Income statements. - Answer ✔ D. Income statements
Home builder Jerry Barton engaged an electrician to install overhead ceiling fans in
many new homes. Jerry paid the electrician by the hour, supervised his work, and had
the right to discharge him. Which one of the following terms best describes the
employment status of the electrician?
Select one:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Scholarsstudyguide. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
