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AINS 101 Exam Questions and Answers (100% Pass)
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AINS 101 Exam Questions and Answers (100% Pass)
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©PREP4EXAMS@2024 [REAL EXAM DUMPS] Monday, July 22, 2024 1:06 PMAINS 101 Exam Questions and Answers (100% Pass)
Risk - ✔️✔️Which one of the following represents uncertainty about outcomes that can be
negative or positive?
Insureds share the cost of each other's losses. - ✔️✔️Which one of the following best describes the
concept of pooling?
Personal property-casualty insurance policy. - ✔️✔️A homeowners policy is a type of
Select one:
Commercial crime insurance. - ✔️✔️Coverage for money and other business property from
various causes of loss such as burglary, robbery, theft, and employee dishonesty typically is
provided by
Mutual Insurer - ✔️✔️A type of insurer that is owned by policyholders and may pay dividends to
policyholders as a return of a portion of premiums paid is a
Government programs can meet legitimate public demands unmet by private insurers. -
✔️✔️Which one of the following correctly describes a reason for government involvement in
property-casualty insurance?
Artificial Intel - ✔️✔️If a fund manager violates the investment guidelines, the computer
immediately notifies MFC's internal control director, and corrective action is taken. MFC's use of
the computer algorithm to monitor investment compliance and to provide notification when
corrective action is necessary illustrates use of
Speculative risk - ✔️✔️Jimmy decided to buy a house in his neighborhood that had been
foreclosed on by the bank that held the mortgage. He is hoping to do some renovation and repair
work on the house, and then sell it for a quick profit. Which one of the following types of risk is
this for Jimmy?
East Insurance comes up with a new rate structure allowing "preferred customers" discounted
policies when they continually renew year after year; East eventually loses needed revenue but is
rewarded by its competitors leaving the market. - ✔️✔️One of the reasons for insurance regulation
is to prevent destructive competition. In which one of the following scenarios would destructive
competition be exhibited?
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,©PREP4EXAMS@2024 [REAL EXAM DUMPS] Monday, July 22, 2024 1:06 PM
Insurance regulation protects customers by guaranteeing insurance is available and accessible to
everyone who needs it. - ✔️✔️Carlos is new to the insurance business and is learning about
insurance regulation and what he, now working with Grady Insurance, will need to be aware of
regarding the subject of compliance. Which one of the following will Carlos find is accurate as
he better understands why insurance is regulated?
Solvency - ✔️✔️What term refers to the ability of an insurer to meet its obligations as they
become due?
Total Liabilities - ✔️✔️An insurer's financial statement shows a loss reserve and an unearned
premium reserve. These reserves are part of the insurer's
Unearned Premiums - ✔️✔️Which one of the following is part of written premiums?
Balance Sheet - ✔️✔️Which one of the following types of financial statements shows the financial
position of an insurance company at any particular point in time?
ometown Insurer's expense ratio is its incurred underwriting expenses ($2,000,000) divided by
its written premiums ($5,000,000), or 40 percent. - ✔️✔️The financial report for Hometown
Insurer contains the following information:
Earned premiums $4,000,000
Written premiums $5,000,000
Net investment income $1,000,000
Incurred Losses $3,000,000
Incurred underwriting expense $2,000,000
The financial report for Hometown Insurer contains the following information:
Earned premiums$4,000,000Written premiums$5,000,000Net investment
income$1,000,000Incurred losses$3,000,000Incurred underwriting expenses$2,000,000
What was the Hometown Insurer's combined ratio? - ✔️✔️Hometown's combined ratio equals its
loss ratio ($3,000,000/$4,000,000) or 75 percent, plus its expense ratio ($2,000,000/$5,000,000)
or 40 percent, for a total of 115 percent.
The insurer is using its own employees as producers. - ✔️✔️The key to the direct writer marketing
system is that
Is free to work with as many different insurers as it wants. - ✔️✔️Spencer Insurance Associates is
an independent agency selling primarily homeowners policies. This agency
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, ©PREP4EXAMS@2024 [REAL EXAM DUMPS] Monday, July 22, 2024 1:06 PM
Anchoy can use group marketing to target large numbers of recent local college graduates. -
✔️✔️As it continues to grow, Anchoy Insurance is examining other distribution channels to more
effectively market its products. Through this experience, which of one the following will Anchoy
most likely learn?
A risk control evaluation can make the difference between the applicant's being rejected or
accepted by the underwriter. - ✔️✔️Which one of the following statements is correct regarding the
interaction between risk control and other insurer functions?
Risk control personnel can assist underwriters in modifying a new applicant's loss exposures to
meet eligibility requirements. - ✔️✔️Which one of the following statements is correct regarding
the interaction between risk control and other insurer functions?
Adequate policyholders' surplus. - ✔️✔️Clare is a commercial lines underwriter. She always tries
to follow underwriting guidelines, effectively evaluate loss exposures, and charge adequate
premiums. By doing these things, Clare's goal is to ensure
Corporate Underwriter - ✔️✔️Aimee recently accepted a job in the Underwriting department at
Noble Insurance Company. Her responsibilities will include developing coverage forms,
arranging reinsurance agreements, and conducting underwriting audits. Which one of the
following is the title of Aimee's new job?
Revise underwriting guidelines - ✔️✔️Tony now works at the corporate level for Newtown
Insurance. He is considered a staff underwriter. Which one of the following is primarily a
responsibility of staff underwriters?
Evaluate the submission - ✔️✔️Which one of the following is the first step in the underwriting
process?
Binder - ✔️✔️Which one of the following is a temporary agreement providing insurance coverage
until the formal policy is issued?
Exposure units. - ✔️✔️Produce, such as apples or grapes, may be priced by the unit or by the
pound. In insurance, these measures are similar to
$3,200 - ✔️✔️Bob is shopping for auto insurance. Insurance Company A's rating system
determines that Bob should be charged $800 per auto. If Bob is looking to insure four autos,
what premium will he be charged by Insurance Company A?
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