AINS 101 EXAM NEWEST PRACTICE
EXAM 2024 ACTUAL EXAM QUESTIONS
AND DETAILED CORRECT ANSWERS |
A+ GRADE STUDYGUIDE
Pravalt Construction Company pays less than its
competitors for workers compensation insurance because
Pravalt has had substantially fewer employee injuries than
other firms in its class. This illustrates which one of the
following benefits of insurance?
Select one:
A. Promote risk control activity
B. Enable efficient use of resources
C. Meet legal requirements
D. Reduce social burden Correct Answer A. Promote risk
control activity
Joel is the underwriter for Stanton Industries. He received
a notice from the premium auditor on the account. After a
recent visit to the insured's location, the auditor wanted to
make Joel aware of a decline in the business and some
questionable business practices. Which one of the
following types of hazards is the auditor identifying?
Select one:
A. Legal hazards
B. Physical hazards
C. Moral hazards
D. Morale hazards Correct Answer C. Moral hazards
,The two main sectors of the insurance industry are
Select one:
A. Personal insurance and commercial insurance.
B. Homeowners insurance and auto insurance.
C. Property-casualty insurance and life-health insurance.
D. Property insurance and liability insurance. Correct
Answer C. Property-casualty insurance and life-health
insurance.
Because the insurance company usually determines policy
wording and the insured has little choice but to "take it or
leave it," an insurance contract is a
Select one:
A. Contract of adhesion.
B. Contract of indemnity.
C. Nontransferable contract.
D. Bilateral contract. Correct Answer A. Contract of
adhesion.
Which two of the four quadrants of risk are classified as
pure risks?
Select one:
A. Operational risks and financial risks
B. Hazard risks and strategic risks
C. Hazard risks and operational risks
D. Financial risks and strategic risks Correct Answer C.
Hazard risks and operational risks
James works very closely with producers on a daily basis.
In addition to evaluating the applicants that the producers
submit, James is involved in presenting policy quotations,
,processing policy endorsements, helping to explain
coverages, and making coverage recommendations.
James works as a
Select one:
A. Field Underwriter.
B. Risk Control Representative.
C. Service Representative.
D. Staff Underwriter. Correct Answer A. Field Underwriter.
John's two-year-old bicycle was stolen. The bicycle's
purchase price was $700, its current replacement cost is
$800, and depreciation was estimated at $450. What was
the bicycle's actual cash value?
Select one:
A. $225
B. $350
C. $450
D. $800 Correct Answer B. $350
Margaret was severely injured and scarred due to a recent
accident. Which one of the following is an example of
general damages Margaret received?
Select one:
A. Compensation for disfigurement
B. Hospital expenses
C. Prescription costs
D. Lost wages Correct Answer A. Compensation for
disfigurement
Many auto manufacturers have automated a portion of
their assembly lines by introducing a smart product. The
, smart product performs repetitive tasks, such as making
the same weld on each vehicle frame as it passes the
smart product. These smart products, which can be fixed
or mobile, reduce repetitive motion injuries. They can also
be used to perform dangerous tasks and for heavy-lifting
jobs. These smart products, enabled by artificial
intelligence, are called
Select one:
A. Wearables.
B. Robots.
C. Drones.
D. Automated sensors. Correct Answer B. Robots.
Allian Insurance Company is a growing regional insurer
selling policies in three states, specializing in personal
auto and homeowners policies. Which one of the following
is most likely true regarding Allian and the policies it sells?
Select one:
A. The manuscript forms that Allian issues are developed
by ISO.
B. Allian offers modular policies for coverages common to
a large number of its insureds.
C. Customized coverages are usually issued through a
self-contained policy.
D. Allian issues more preprinted policies than manuscript
forms. Correct Answer D. Allian issues more preprinted
policies than manuscript forms.
Sports, Inc. is looking to obtain a commercial property
policy on its building for $400,000. If their insurer decides
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