Risk Assessment & Mitigation Flashcards
7 cards from real CRU practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Assessment & Mitigation flashcards as text
A home inspection reveals galvanized steel pipes throughout the plumbing system. Why is this a concern for underwriters?
Answer: Galvanized pipes corrode from the inside, leading to reduced flow and eventual leaks
Galvanized steel pipes corrode internally over decades, eventually leading to pinhole leaks, pipe bursts, and water damage claims—a significant underwriting concern in older homes.
When underwriting a home in a wildfire-prone area, the 'defensible space' around a property refers to:
Answer: A vegetation-cleared buffer zone that slows fire spread to the structure
Defensible space is a cleared or modified vegetation zone around a home that slows the approach of wildfire and provides room for firefighters to safely defend the structure.
An underwriter is evaluating a home with a detached garage used as a woodworking shop with power tools and sawdust. This creates primarily:
Answer: An elevated fire hazard requiring additional underwriting scrutiny
Sawdust accumulation and power tools create a significantly elevated fire hazard; woodworking shops are a recognized underwriting concern requiring careful evaluation.
A property's loss history shows three water damage claims in five years. The underwriter's MOST appropriate response is to:
Answer: Investigate the source of recurrent water losses and consider requiring remediation
Repeated water damage claims suggest an unresolved underlying condition; prudent underwriting requires identifying root causes and potentially requiring repairs before binding coverage.
Which property characteristic would MOST likely qualify for a premium credit in coastal wind territory?
Answer: Opening protection such as impact-rated windows and doors
Impact-rated windows and doors (opening protection) are among the most effective wind mitigation features and directly qualify for significant premium credits in coastal territories.
Under ISO's homeowners rating system, which factor does NOT directly affect the Property Protection Class (PPC) score?
Answer: The homeowner's individual claims history
PPC is a community-level rating based on fire department resources, water supply, and emergency communications—individual claims history is not a PPC factor.
A residential property sits on an expansive clay soil in a region known for significant seasonal soil movement. The primary underwriting concern is:
Answer: Foundation damage from soil expansion and contraction cycles
Expansive clay soils swell when wet and shrink when dry, exerting differential pressure on foundations that can cause cracking, shifting, and significant structural damage over time.