EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
AU 61 - EXAM REVIEW QUESTIONS
AND ANSWERS
While traveling on an interstate highway, Julia Carson noticed a large plume of smoke in what
appeared to be an isolated area. Julia pulled off at the next exit and called 911 to reach a single
emergency response center that dispatched local fire services to the area. Which one of the
following elements did Julia use? - Answer✔✔-Fire detection
Floors, beams, and joists spread interior load _____to ________load-bearing components. -
Answer✔✔-horizonally, vertical
Special hazards of the class - Answer✔✔-Are characteristics typical of all occupancies in a given
class that can cause or aggravate loss.
Often, the damage in fires arises not from the fire itself, but through secondary damage from
the suppression efforts. Which one of the following is a common secondary damage resulting
from fire suppression efforts? - Answer✔✔-mold
Automatic sprinklers provide the most effective protection against loss by fire, however
underwriters should not overlook the sprinkler leakage loss exposure. Underwriting
considerations for evaluating an account for sprinkler leakage exposures include which one of
the following? - Answer✔✔-Susceptibility of contents to water damage
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,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
A Commercial Package Policy, whether monoline or multiline, includes which one of the
following forms? - Answer✔✔-Common Policy Conditions form
Fuel load is usually expressed as weight of combustible material per - Answer✔✔-square foot
Ice dams form - Answer✔✔-On the edge of roofs and can cause water to penetrate roofs.
Aside from determining the value of a building, there are other underwriting considerations
related to verifying commercial property values. Which one of the following statements
regarding verifying property values is true? - Answer✔✔-Underground foundations and
plumbing must be given special consideration when determining property values.
Underwriters need to recognize when covered property is in a location susceptible to flooding.
The most widely distributed flood product produced by the U.S. Corps of Engineers is the -
Answer✔✔-Flood Insurance Rate Map (FIRM).
The Murphy Corporation earns most of its income during a peak season of three months. In
fact, during the remaining months, it actually operates at a loss. An underwriter has determines
that the probable maximum loss (PML) for the corporation is $600,000 and its coinsurance basis
is $550,000. Based on ISO underwriting rules, what is the appropriate coinsurance percentage
for Murphy? - Answer✔✔-125
While not all heat sources are ignition sources, many of the heat sources present in
manufacturing occupancies, such as electric motors, steam pressure vessels and turbines, pose
significant potential ignition sources. The potential for fire due to the use of heat sources and
the presence of flammables requires - Answer✔✔-Strict adherence to fire safety codes
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, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
Underwriters should be concerned that the potential for a combustion explosion be controlled,
and the damage it can cause be mitigated. Maintaining a lean air-fuel mixture for potentially
explosive equipment is one effective protection in this area. Maintaining this lean air-fuel
mixture is which one of the following strategies for controlling combustion explosions? -
Answer✔✔-Energy released.
Underwriters should examine the financial condition of potential insureds because -
Answer✔✔-The financial state of a company is also a tangible measure of management
competence and resources available for effective risk control.
Penn Woods Plaza, a strip shopping center in Pennsylvania, is classified as mill construction. Its
tenants include an accounting office, a Chinese restaurant, a pizza parlor, a nail salon, and a dry
cleaner. From a fire underwriting perspective, a property underwriter is most likely to find this
risk - Answer✔✔-Desirable, because the structure would probably survive a severe fire.
Jade, an underwriter, is reviewing a property insurance submission for Miller's Furniture, a
70,000 square-foot area, privately-owned retail furniture store. Miller's offers a large selection
of area rugs; metal, wood, and upholstered furniture; and decorative items for the home such
as artwork, lamps, small sculptures, artificial flower arrangements, and tapestry wall hangings.
Much of the upholstered furniture is made with flame-retardant fabric. Some of the wood items
are solid oak, cherry, or mahogany, while other, more modern pieces, are of painted and
varnished wood. Of the four ISO occupancy rating system factors, Jade's greatest concern with
regard to underwriting Miller's account is likely to be the - Answer✔✔-C. Susceptibility of
contents.
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