AU 60 Practice Exams Questions and
Answers
Tobias, a successful producer with Barnley's Insurance Company, is struggling with an intricate
quote on homeowners coverage for his insured, Hanna. Hanna not only has substantial
collections of guns and silverware, but also has a small farm located at...
C. Charging similar premiums for all risks that they agree to insure.
D. Assigning insureds with similar characteristics to the same rating class. - Answer✔✔-D.
Assigning insureds with similar characteristics to the same rating class.
Adam is an analyst conducting a market conduct examination at DEF Insurance in response to a
consumer complaint. During the course of his review, he discovers that DEF has failed to apply
newly implemented underwriting and rating factors to renewals, failed to use mutually exclusive
underwriting guidelines for the company's different programs, failed to use correct forms and
rates, and failed to apply underwriting guidelines consistently by occasionally allowing
producers exceptions. Which one of these practices will Adam most likely allow the insurer to
continue?
Select one:
A. Not using correct forms and rates
B. Allowing producers exceptions in some cases
C. Using guidelines for different programs that are not mutually exclusive
D. Not applying new rates and rules to renewals - Answer✔✔-B. Allowing producers exceptions
in some cases
An insurance company must have adequate policyholders' surplus if it wishes to
Select one:
A. Avoid adverse selection.
Page 4/38
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 Emillect. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
