Construction and Occupancy Considerations Pertaining to Fire Risk: Practice Questions and Solutions

This section of the study guide is intended to provide practice problems and solutions to accompany the pages of Insurance Operations, Regulation, and Statutory Accounting, cited below. Students are encouraged to read these pages before attempting the problems. This study guide is entirely an independent effort by Mr. Stolyarov and is not affiliated with any organization(s) to whose textbooks it refers, nor does it represent such organization(s).

Some of the questions here ask for short written answers based on the reading. This is meant to give the student practice in answering questions of the format that will appear on Exam 5. Students are encouraged to type their own answers first and then to compare these answers with the solutions given here. Please note that the solutions provided here are not necessarily the only possible ones.

Source:

Myhr, A.E.; and Markham, J.J. Insurance Operations, Regulation, and Statutory Accounting (Second Edition). American Institute for Chartered Property Casualty Underwriters. 2004. Chapter 5, pp. 5.3-5.14.

Original Problems and Solutions from The Actuary's Free Study Guide

Problem S5-53-1. Six construction classes are identified by Myhr and Markham, p. 5.4:

Class 6: Fire-resistive construction;
Class 5: Modified fire-resistive construction;
Class 4: Masonry noncombustible construction;
Class 3: Noncombustible construction;
Class 2: Joisted masonry construction;
Class 1: Frame construction.

Give the definition of each type of construction.

Solution S5-53-1. The following definitions can all be found in Myhr and Markham, pp. 5.4-5.6:

Fire-resistive construction: "Construction that incorporates load-bearing members and that has a fire-resistance rating of at least two hours."

Modified fire-resistive construction: "Construction that has load-bearing members and columns of masonry or reinforced concrete construction and that has a fire-resistance rating of one to two hours."

Masonry noncombustible construction: "Masonry construction or construction that includes exterior walls of fire-resistive construction with a fire-resistance rating of not less than one hour."

Noncombustible construction: "A building of noncombustible construction has exterior walls, roof, and floor constructed of and supported by metal or noncombustible materials such as gypsum. Although these buildings are noncombustible, they are not fire-resistive."

Joisted masonry construction: "Construction that has load-bearing exterior walls made of brick, adobe, concrete, gypsum, stone, tile, or similar materials; that has floors and roofs of combustible materials; and that has a fire-resistance rating of al least one hour."

Frame construction: "Construction that has load-bearing components made of wood or other combustible materials."

Problem S5-53-2. Myhr and Markham, p. 5.8, mention eight important factors that should be considered with regard to the age of a building. Provide three of these factors.

Solution S5-53-2. The following factors are mentioned by Myhr and Markham, p. 5.8:
1. "A different building code might have been in effect when the building was constructed. Consequently, the building might lack protective features and systems generally considered essential today."
2. "Complying with current building codes might increase the cost of making repairs after a loss."
3. "Heating, cooling, electrical, and fire protection systems might be obsolete."
4. "The building might have been intended for a different occupancy and might not be suitable for its current use."
5. "Conversion and remodeling might have created concealed spaces in which could burn undetected and spread rapidly."
6. "Alterations and repairs made over the years might have left unprotected openings in vertical and horizontal firestops."
7. "The building's condition might have deteriorated for numerous reasons, including normal wear and tear, hard use, or lack of maintenance."
8. "The value of an older building might be difficult to determine, especially if the builder used construction techniques and materials that are no longer available."

Any three of the above answers would suffice.

Problem S5-53-3. Define the following elements of a building's structure, discussed by Myhr and Markham, p. 5.10:
(a) Fire division;
(b) Fire wall;
(c) Parapet;
(d) Fender wall.

Solution S5-53-3. The following definitions are provided by Myhr and Markham, p. 5.10:

(a) Fire division: "A section of a structure so well protected that fire cannot spread from that section to another, or vice versa."
(b) Fire wall: "A wall that resists the spread of fire by serving as a fire-resistive barrier."
(c) Parapet: "A vertical extension of a fire wall that extends above a roofline."
(d) Fender wall: "An extension of a fire wall through an outer wall."

Problem S5-53-4. Myhr and Markham, pp. 5.12-5.13, define and discuss six occupancy categories. What are the six categories, and what are the defining features of each?

Solution S5-53-4. The six occupancy categories, as discussed by Myhr and Markham, pp. 5.12-5.13, are as follows:
1. Habitational: This category includes apartments, hotels, motels, and nursing homes.
2. Office: This category encompasses buildings used for office occupancy; these buildings may have unusual features, including heliports and restaurants. Typically, this is a low-hazard category, as buildings within it contain materials of relatively limited combustibility.
3. Institutional: This category includes schools, churches, hospitals, and government property - with the exception of habitational property owned and operated by government entities. Special-purpose facilities, such as police stations, fire stations, and prisons, are also included under this category.
4. Mercantile: This category includes businesses that buy or sell merchandise at the wholesale or retail level. Examples include grocery stores, clothing stores, department stores, hardware stores, and specialty shops.
5. Service: This category includes businesses that perform a service or activity for a customer, instead of creating a product. Examples include dry cleaners and auto service stations.
6. Manufacturing: This category includes businesses that convert raw stock into finished products. Examples include steel manufacturers and pasta manufacturers. Depending on the item being manufactured, the hazards can vary dramatically within this category.

Problem S5-53-5. Myhr and Markham, pp. 5.13-5.14, state that three characteristics of building contents that underwriters should evaluate are 1) ignition sources, 2) combustibility, and 3) damageability.
(a) Give two examples of potential ignition sources.
(b) Give three examples of highly combustible materials.
(c) What else besides the ability to burn would damageability encompass?

Solution S5-53-5.

(a) The following four potential ignition sources are discussed by Myhr and Markham, pp. 5.13-5.14:

1. "Friendly fires that escape containment;"
2. "Friction that generates enough heat to ignite nearby combustible material;"
3. "Electricity that produces sparks or heat that can ignite exposed combustibles;"
4. Exothermic chemical reactions that produce heat sufficient to cause ignition.

Any two of the above answers suffice. Other valid answers may be possible.

(b) The following categories of highly combustible materials are discussed by Myhr and Markham, p. 5.14:
1. "Light combustible materials such as thin plywood, shingles, shavings, paper, cotton, and other fibers;"
2. "Combustible dusts such as those produced when refinishing bowling alley lanes or refining flour;"
3. "Flammable liquids;"
4. "Combustible gases such as hydrogen;"
5. "Materials subject to spontaneous combustion;"
6. "Explosive materials, acids, and oxidizing agents."

Any three of the above answers suffice. Other valid answers may be possible.

(c) Other considerations pertaining to damageability include the ability of property to be damaged by smoke or by water used in putting out a fire.

See other sections of The Actuary's Free Study Guide for Exam 5.