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AU 60 FINAL EXAM ACTUAL EXAM 2 VERSIONS AND PRACTICE QUESTIONS EXAM COMPLETE 600 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY GRADED A+$17.99
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AU 60 FINAL EXAM ACTUAL EXAM 2 VERSIONS AND PRACTICE QUESTIONS EXAM COMPLETE 600 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY GRADED A+
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Cardiorespiratory and Motor Coordination
AU 60 FINAL EXAM ACTUAL EXAM 2 VERSIONS AND PRACTICE QUESTIONS EXAM COMPLETE 600 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY GRADED A+
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AU 60 FINAL EXAM ACTUAL EXAM 2 VERSIONS AND
PRACTICE QUESTIONS EXAM COMPLETE 600
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) /ALREADY GRADED A+
The common distinction between field underwriters and corporate underwriters is
that line underwriters - ANSWER: Implement the steps in the underwriting process.
Corporate underwriters assist underwriting management with formulating
underwriting policy.
Which one of the following statements is correct with regard to regulation and
insurers' operations? - ANSWER: Solvency regulation indirectly influences
underwriting by limiting new business for insurers.
Underwriting regulations seek to ensure correct classification of insureds because -
ANSWER: Misclassification can result in inadequate premiums and drain an insurer's
surplus.
The primary benefit of using the services of an independent contractor who
specializes in risk control work to inspect properties, rather than the insurer's risk
control representative? - ANSWER: Quicker response
John is a risk management specialist for XYZ Company. John examines XYZ's financial
statements on a quarterly basis. Which one of the following best describes a reason
for this analysis? - ANSWER: A review of the financial statements helps John to
determine XYZ's insurance needs.
Cost of goods sold appears on the income statements of manufacturing and retail
entities. Which one of the following statements best describes cost of goods sold -
ANSWER: Cost of goods sold reports expenses after an inventory item is sold.
Which one of the following types of analysis helps an underwriter identify abnormal
values reported by an organization? - ANSWER: Vertical analysis
Liquidity ratios are used to determine a company's ability to pay off its short-term
debts. Typically, the higher the value of the ratio, - ANSWER: The larger the margin
of safety the company possesses to cover its short-term debts.
Which one of the following ratios indicates the adequacy of a company's working
capital to meet its current financial obligations? - ANSWER: Current ratio
The most recent financial statements for Buddy's Burger Hut reveal the following:
Cash$50,000 Equipment$25,000 Inventory$15,000 Accounts Receivable$2,500 Cost
of Goods Sold$125,000 Marketable Securities$5,000 Current Liabilities$50,000
, Based on this information, Buddy's Burger Hut's Acid-Test Ratio is - ANSWER:
Buddy's Burger Hut's Acid-Test Ratio is 1.15. ($50,000 + $5,000 + $2,500) / $50,000 =
1.15
An organization that considers both key business risks and opportunities when
formulating its business strategies reflects its commitment to which one of the
following? - ANSWER: Enterprise risk management
William is a plumber. He has a contract with a home builder to install the bathrooms
in a new housing development. William will supply the materials and equipment. He
will be paid a fixed fee per house and must complete the job by an agreed deadline.
Which one of the following best describes William's relationship to the home
builder? - ANSWER: Subcontractor
Which one of the following sources of underwriting information provides a hazard
index by line of insurance for the various classifications? - ANSWER: Best's
Underwriting Guide
Jackson is a commercial lines underwriter. When evaluating an organization's
location, one of the factors that he considers is how susceptible the organization is
to social inflation. Social inflation is typically of greatest concern when underwriting
which one of the following lines of business? - ANSWER: Liability
To understand why insurers charge a certain premium, the components must be
understood. The amount needed to pay future claims and loss adjustment expenses
is referred to as - ANSWER: Prospective loss costs.
Given the following data and using the pure premium ratemaking method, calculate
the insurance rate (rounded).
Incurred losses$750,000
Earned exposure units 12,500
Fixed expenses per exposure unit $15
Profit and contingencies factor4% - ANSWER: The insurance rate is $78. The pure
premium is $750,000/12,500 = $60. Then the insurance rate = ($60+$15) / (1-0.04) =
78
Which one the following statements is true regarding schedule rating and individual
risk premium modification plans? - ANSWER: Generally, those insureds that are
eligible to use experience rating are also eligible to use schedule rating.
Insurance rate regulatory objectives include all of the following, EXCEPT - ANSWER:
Competitive
Which one of the following statements about the reunderwriting process is true -
ANSWER: The process is circular and begins and ends with monitoring activities.
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