AINS 101 Exam Questions And Answers. Verified and Updated.
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AINS 101
Institution
AINS 101
AINS 101 Exam Questions And Answers.
Verified and Updated.
Which of the following is an example of a legal requirement for individuals that could be met
through insurance?
a. contributing to the growth of the organization
b. paying for losses
c. obtaining personal auto insurance
d. providing...
EXAM STUDY MATERIALS July 24, 2024 1:33:58 PM AINS 101 Exam Questions And Answers. Verified and Updated. Which of the following is an example of a legal requirement for individuals that could be met through insurance? a. contributing to the growth of the organization b. paying for losses c. obtaining personal auto insurance d. providing a source of investment funds - answer✔✔c. obtaining personal auto insurance A fire destroys the kitchen in Rob and Laurie's home. Which insurance policy would provide coverage for the damage? a. Homeowners Policy (Personal Liability) b. Homeow ners Policy (Property) c. Personal Umbrella Policy d. Personal Auto Policy - answer✔✔b. Homeowners Policy (Property) Which insurance policy could protect Rob and Laurie's sandwich shop against losses from employee theft? a. Workers Compensation b. Commerci al Crime c. Commercial Property d. Commercial General Liability e. Commercial Auto - answer✔✔b. Commercial Crime The best indication of an insurer's overall financial health is the - answer✔✔policyholders surplus (It shows how much cash an insurer has on h and for emergencies, unexpected losses, and expansion of business) Combined ratio = - answer✔✔loss ratio + expense ratio EXAM STUDY MATERIALS July 24, 2024 1:33:58 PM expense ratio = - answer✔✔incurred underwriting expenses / written premiums loss ratio = - answer✔✔incurred losses (including loss adju stment expenses) / earned premiums Marco has been approved for a car insurance policy with a low premium because on his application he gave an address in a low -crime area. However, the actual address at which he lives and parks his car is in a high -crime a rea. What is this an example of? a. Growing capacity b. Adverse selection c. Creating surplus d. Following underwriting guidelines - answer✔✔b. Adverse selection Emily is the underwriter for Marco's account. What is one way she could detect and minimize instances of adverse selection such as this? a. Increase auto policy premiums b. Ensure adequate policyholders' surplus c. Monitor the book of business for unusual patterns of policy growth or losses d. Alter the underwriting guidelines - answer✔✔c. Monitor the book of business for unusual patterns of policy growth or losses These underwriters evaluate individual insurance applications and policy renewals and manage their own books of business. In many ways, they are the public face of the Underwriting Department - answer✔✔field underwriters These underwriters make large -scale decisions about coverage, pricing, lines of business, and the overall risk selection process - answer✔✔corporate underwriters What do underwriters evaluate to determine the appropriate classification for a commercial operation? a. the insurer's book of bu siness b. specific characteristics of the insured's operation c. the producer's years of experience on the job d. policy holders' surplus - answer✔✔b. specific characteristics of the insured's operation Exposure unit to the type of insurance it's typically used for: Each vehicle - answer✔✔auto Exposure unit to the type of insurance it's typically used for: EXAM STUDY MATERIALS July 24, 2024 1:33:58 PM Each $100 of insured value - answer✔✔commercial property Exposure unit to the type of insurance it's typically used for: Each $1,000 of gross sales - answer✔✔general liability Exposure unit to the type of insurance it's typically used for: Each $1,000 of insured value - answer✔✔homeowners Exposure unit to the type of insurance it's typically used for: Each $100 of payroll - answer✔✔workers comp Maria accid entally rear -ended Kenneth at a stop light. After the two made sure they were both uninjured, they exchanged insurance information. Shortly afterward, Kenneth called Maria's insurer and talked to Javier to report the damages to his car. ______ is the clai m's representative. - answer✔✔Javier Maria accidentally rear -ended Kenneth at a stop light. After the two made sure they were both uninjured, they exchanged insurance information. Shortly afterward, Kenneth called Maria's insurer and talked to Javier to re port the damages to his car. _____ is the claimant. - answer✔✔Kenneth Belinda is a claims professional who works outside her organization's office. She generally handles claims that require investigating the scene of a loss; resolving complex investigativ e issues; and meeting with insureds, claimants, lawyers, and others involved in a claim. What type of claims representative is she? a. Telephone claims representative b. Claims manager c. Claims supervisor d. Field claims representative - answer✔✔d. Field claims representative If Tania needed to consult an accident -scene reconstruction specialist, she would have been engaged in which one of these claims hand ling activities? a. Investigating and documenting the claim. b. Contacting the insured or the insured's representative EXAM STUDY MATERIALS July 24, 2024 1:33:58 PM c. Identifying the policy that may cover the claim d. Acknowledging a claim and assigning it to the claims representative - answer✔✔a. Investigating and documenting the claim. Using the previous exa mple, let's say the couch destroyed in the fire has a ten -year lifespan and replacement value of $800. If it was four years old and insured for its actual cash value, how much would the policyholder receive? a. $480 b. $800 c. $380 d. $600 - answer✔✔a. $48 0 reimburses the insured for the cost of replacing the property, minus depreciation - answer✔✔actual cash value The maximum amount that will be paid in the event of a loss is set by the insured and insurer at the time the policy is written. - answer✔✔agree d value reimburses the insured for the cost of replacing the property - answer✔✔replacement value _____ reimburse a victim for actual harm - answer✔✔compensatory damages are awarded to punish a defendant for reckless, malicious, or deceitful acts - answer✔✔punitive damages are awarded for specific, identifiable expenses associated with the injured person's loss - answer✔✔special damages awarded to compensate a victim for losses such as pain and suffering - answer✔✔general damages investing in the stock mark et is an example of _____ risk - answer✔✔speculative driving a car is an example of ____ risk - answer✔✔pure the principle that prevents an insured from profiting from owning an insurance policy - answer✔✔indemnity a self -employed hairstylist wants to make sure she's covered in case a client sues her. Her agent suggests a ____ policy. - answer✔✔manuscript unique information on the insured; list of forms included in policy - answer✔✔declarations Statements containing insurer's promise to make payment - answe r✔✔insuring agreement
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