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A commercial underwriter wants the most reliable evidence of prior claim frequency and severity before quoting a new account. Which source should the underwriter review first?

Carrier loss runs for the past three to five years

A building tax assessment

A certificate of occupancy

The applicant's marketing brochure

to track

2026 Statistics

Key Facts: AU Exam

Courses Required

Plus Ethics 311

Questions Per Exam

The Institutes

65 min

Time Limit

Per course exam

70%

Passing Score

Per course exam

$259-$339

Exam Fee

2026 virtual exam fee schedule

9-12 mo

Typical Completion

AU designation page

AU is not one comprehensive licensing exam. It is a four-course professional designation with a separate 50-question, 65-minute virtual exam for each course and a 70% passing standard. The Institutes' AU page highlights a 9-12 month completion timeline for many candidates. This practice bank weights AU 60, AU 61, and AU 62 almost evenly because The Institutes does not publish one combined AU section-weighting blueprint.

Sample AU Practice Questions

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1A commercial underwriter wants the most reliable evidence of prior claim frequency and severity before quoting a new account. Which source should the underwriter review first?

A.Carrier loss runs for the past three to five years

B.A building tax assessment

C.A certificate of occupancy

D.The applicant's marketing brochure

Explanation: Loss runs show the account's actual claim history, including dates, causes, amounts paid, and reserves. That history is central to identifying frequency patterns, severity concerns, and possible adverse selection.

2A property submission lists a 20-year-old roof, but the underwriter wants objective information about its current condition before binding. Which source is most useful?

A.The applicant's articles of incorporation

B.A workers compensation experience modification worksheet

C.A recent inspection report or current roof imagery

D.The insured's accounts receivable aging

Explanation: Inspection reports and current imagery help confirm roof age, maintenance, and visible deterioration. That information is directly tied to weather-related property loss potential.

3An underwriter is concerned that a contractor may understate the number of vehicles used in operations. Which data source best helps verify fleet composition?

A.The local fire department response map

B.The applicant's balance sheet only

C.Vehicle schedules supported by registration records

D.A contingent business income worksheet

Explanation: Vehicle schedules and registration records help verify the number, type, and ownership of autos actually used by the business. That is more reliable than relying only on general financial statements or unrelated property data.

4When an underwriter wants to understand whether sales have become more volatile over time, which financial source is most directly useful?

A.A property valuation summary only

B.A copy of the insured's bylaws

C.A list of additional insureds

D.Multi-year income statements showing revenue trends

Explanation: Income statements across several periods show whether revenue is stable, growing, or shrinking. Volatile sales can signal operational stress and possible pressure on pricing, maintenance, or internal controls.

5A carrier is evaluating catastrophe accumulation across multiple insured locations. Which tool is most appropriate?

A.Reviewing only the insured's mission statement

B.Comparing the account to a personal auto rate table

C.Using the applicant's payroll journal as the sole source

D.Geocoding each location and running catastrophe-model output

Explanation: Catastrophe accumulation depends on where locations are and how hazards cluster geographically. Geocoding and CAT modeling help the underwriter measure concentration that might not be obvious from a basic schedule alone.

6An underwriter suspects that a manufacturer's safety program looks strong on paper but is not consistently followed. Which source best tests day-to-day execution?

A.A copy of the company logo file

B.A list of named insured endorsements

C.The building's original deed

D.An on-site inspection with management and employee interviews

Explanation: An on-site inspection helps the underwriter compare written procedures with actual behavior, housekeeping, and supervision. Interviews often reveal whether the culture truly supports the formal safety program.

7Which underwriting data source is most useful for evaluating driver quality on a delivery fleet?

A.Property appraisal reports

B.Flood maps for the headquarters location

C.Accounts payable turnover reports

D.Motor vehicle records for each regularly assigned driver

Explanation: Motor vehicle records show violations, suspensions, and accident histories that directly affect fleet risk. Property, payables, and flood data do not answer the driver-quality question.

8A retailer reports very strong holiday sales each year. What additional operating data would most help an underwriter assess seasonal concentration risk?

A.A map of nearby hydrants only

B.A boiler inspection from an unrelated location

C.The insured's corporate seal

D.Monthly sales reports showing how much revenue is earned in peak months

Explanation: Monthly sales reports show whether the business depends heavily on a short peak season. If it does, a disruption during those months can have a disproportionate effect on business income and liquidity.

9An underwriter wants to confirm whether a distributor depends on a few major customers. Which source is most relevant?

A.A fire wall diagram only

B.A list of sprinkler heads by manufacturer

C.A workers compensation classification manual excerpt

D.Accounts receivable concentration information

Explanation: Receivable concentration shows whether a large share of revenue comes from only a few customers. Heavy concentration increases earnings volatility if one customer leaves or fails to pay.

10Which source would best help an underwriter verify whether a property has functioning central-station alarm monitoring?

A.The applicant's depreciation schedule

B.The insured's employee handbook

C.A payroll summary by class code

D.Alarm service and monitoring documentation

Explanation: Monitoring contracts and service records help verify that alarm protection is active and maintained. That evidence is more direct than accounting records or personnel documents.

About the AU Exam

The Associate in Commercial Underwriting (AU) is The Institutes' commercial-line underwriting designation. The official path requires four courses plus Ethics 311. AU-specific content is concentrated in AU 60, AU 61, and AU 62, which cover underwriting data and financial analysis, commercial property underwriting, and commercial liability underwriting.

Assessment

4-course designation path plus Ethics 311; each course uses a separate virtual exam in an Institutes testing window

Time Limit

65 minutes per course exam

Passing Score

70% per course exam

Exam Fee

$259 early registration / $339 standard per exam (The Institutes)

AU Exam Content Outline

34%

AU 60: Commercial Underwriting Foundations

Data sources, financial statement analysis, operations review, management quality, premium determination, underwriting performance, and communication. Practice weighting is inferred from the official AU course structure because The Institutes does not publish one combined AU blueprint.

33%

AU 61: Commercial Property Underwriting

Commercial property applications, construction and occupancy, fire protection, external exposure, natural hazards, business income, and holistic property risk selection.

33%

AU 62: Commercial Liability Underwriting

Commercial liability exposure analysis, general liability, business auto, workers compensation, professional liability, umbrella and excess liability, and large-account underwriting.

How to Pass the AU Exam

What You Need to Know

Passing score: 70% per course exam
Assessment: 4-course designation path plus Ethics 311; each course uses a separate virtual exam in an Institutes testing window
Time limit: 65 minutes per course exam
Exam fee: $259 early registration / $339 standard per exam

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

AU Study Tips from Top Performers

1Study AU in course order. AU 60 gives you the framework for how underwriters evaluate data, financials, operations, and price adequacy before you move into line-specific property and liability analysis.

2Practice reading short underwriting scenarios instead of memorizing isolated definitions. AU-style questions usually ask for the most underwriting-relevant fact, control, or pricing implication.

3Know the difference between frequency drivers and severity drivers. That distinction shows up repeatedly in property hazards, general liability, business auto, workers compensation, and umbrella decisions.

4Review commercial financial statements until you can connect liquidity, leverage, margins, and cash flow to underwriting concerns such as moral hazard, maintenance quality, and business continuity.

5Leave time for portfolio thinking. AU is not just about whether one account looks good; it also tests aggregation, concentration, account size, attachment points, and how decisions affect overall underwriting performance.

Frequently Asked Questions

Is AU one exam or a full designation program?

AU is a full designation program, not a single licensing exam. The Institutes' AU pathway requires four courses plus Ethics 311, and each course has its own virtual exam.

What is the official AU exam format?

The Institutes says its designation-course exams use 50 questions in 65 minutes with a 70% passing score. AU exams are delivered virtually in testing windows rather than as one combined comprehensive exam.

How much does AU cost in 2026?

As of March 12, 2026, The Institutes' virtual exam fee page lists $259 for early registration and $339 standard registration per exam. The underwriting course list prices most AU course packages at about $415-$515 each, so total path cost varies by package choices and registration timing.

What are the official AU content areas?

The Institutes organizes AU around AU 60, AU 61, and AU 62, with an additional elective and Ethics 311 for the designation. Because The Institutes does not publish one master AU section-weighting blueprint, this practice bank infers weighting from the three AU-branded core courses: foundations/data, commercial property underwriting, and commercial liability underwriting.

How long does the AU designation usually take?

The official AU designation page states a typical completion range of 9-12 months. Candidates who pace one course at a time often take longer, especially if they add review time between testing windows.

Were there any AU-specific 2026 exam changes?

As of March 12, 2026, The Institutes had not posted an AU-specific blueprint, time-limit, or passing-score change. The main current underwriting development is broader insurer oversight of AI use in underwriting and pricing, while the AU course pages also note that new AI bonus content is not scored on the exam.