AU 62 ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS (ALREADY GRADED A+) NEWEST VERSION
12 views 0 purchase
Course
AU 62
Institution
AU 62
AU 62 ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS (ALREADY GRADED A+) NEWEST VERSION
Which one of the following correctly describes a section of the National Council on Compensation Insurance's Basic Manual? - Answer The Rules section includes specifics on pricing and processing a workers compens...
AU 62 ACTUAL EXAM QUESTIONS
AND CORRECT ANSWERS
(ALREADY GRADED A+) NEWEST
VERSION
Which one of the following correctly describes a section of the National Council on
Compensation Insurance's Basic Manual? - Answer ✔ The Rules section includes
specifics on pricing and processing a workers compensation policy.
Which one of the following statements about physical inspections is most accurate? -
Answer ✔ Physical inspection results may depend on the time of day at which the
inspection is conducted.
Which one of the following statements is true regarding the Auto Dealers Coverage
Form (ADCF) developed by Insurance Services Office, Inc. (ISO)? - Answer ✔ The
Liability Coverage section provides both general liability coverage and auto liability
coverage.
Auto dealers are classified based on whether they are franchised or nonfranchised. The
classification also depends on which one of the following? - Answer ✔ Type of vehicles
Which one of the following statements is true regarding the limit of liability for
garagekeepers comprehensive or specified causes of loss coverage? - Answer ✔ The
limit of liability should be equivalent to the maximum actual total value of the vehicles
normally stored at the location.
In the auto dealership industry, floor plans are - Answer ✔ Lending arrangements used
to finance inventory.
A typical nonfranchised dealer stores all vehicles in which one of the following? -
Answer ✔ Nonstandard open lot
Johnny's Contracting Service has a Business Auto Coverage Form (BAC) covering his
vehicles. He also has a Commercial Package Policy (CPP) covering his equipment.
Which one of the following would be covered under Johnny's BAC? - Answer ✔ A truck
used for hauling dirt from jobsites
, The premium for physical damage coverage is based the age group of the vehicle and
the - Answer ✔ Original cost new.
Which one of the following traditional commercial auto underwriting attributes may be
enhanced by using telematics sensors to monitor the condition of a vehicle? - Answer ✔
Vehicle use
ABC Company manufactures hot beverage containers and distributes them to various
retail outlets. A customer who purchased one of these containers at a retail store is
burned by hot coffee after the lid on a container falls off. Which one of the following
principles of law would be the basis for a suit brought by the injured party? - Answer ✔
Implied warranty
While Wanda was mowing her lawn, the lawn mower made a popping noise and
suddenly exploded. Engine parts flew through the air and struck Wanda's grandfather in
the eye. As a result of losing his vision, Wanda's grandfather, Homer, sued the
lawnmower manufacturer. Homer's best approach in the lawsuit is to assert - Answer ✔
Strict liability as a nonuser.
Keith created a tennis ball return machine favored by tennis professionals because of
the high velocity of the machine. The speeds of return are random which is clearly
posted on the machine. A 13-year-old tennis player loses his eye in an accident due to
a ball returned at a very high speed. In this situation, the type of product defect that
would most likely lead to a liability suit against Keith is which one of the following? -
Answer ✔ Failure to warn
When analyzing an applicant's completed operations liability exposure, underwriters
evaluate which one of the following? - Answer ✔ The extent to which employees are
supervised
Which one of the following is an algorithm often used in cluster analysis? - Answer ✔ K-
means is an algorithm often used in cluster analysis, in which "k" indicates the number
of clusters, and "means" represents the clusters' centroids.
Tania is a producer with Stevens Insurance Agency (SIA). Believing that she had
binding authority up to $500,000 on residential properties, she issued a binder for
Westfolk Mutual on a house with an insured value of $450,000. After the house suffered
a total loss due to a fire, it was discovered that Tania's binding authority was limited to
$250,000 on properties in the remote area where the house was located. Which one of
the following best describes how the claim will most likely be handled by Westfolk
Mutual? - Answer ✔ Westfolk Mutual will pay the full loss per the binder, and likely seek
recovery from SIA for the $200,000 that exceeded binding authority.
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 $12.49. You're not tied to anything after your purchase.
