AINS 21 Practice Quiz Test Exam Questions with Verified Answers
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Course
AINS 21
Institution
AINS 21
AINS 21 Practice Quiz Test Exam Questions with Verified Answers
1: What does AINS stand for in the context of insurance education? - correct answer - Associate in General Insurance.
2: What is the primary purpose of insurance? - correct answer -
To transfer risk from an individual or busines...
AINS 21 Practice Quiz Test Exam Questions with
Verified Answers
1: What does AINS stand for in the context of insurance education? - correct
answer - Associate in General Insurance.
2: What is the primary purpose of insurance? - correct answer -
To transfer risk from an individual or business to an insurance company.
3: What is a premium in insurance terms? - correct answer -
The amount of money an insured pays to an insurer for coverage.
4: Define underwriting in the insurance industry.
The process of evaluating risk and determining the terms and pricing of
insurance policies.
5: What is a deductible in an insurance policy? - correct answer -
The amount the insured must pay out-of-pocket before the insurance
company pays a claim.
6: What is the principle of indemnity? - correct answer -
, The principle that insurance should restore the insured to their financial
position before the loss, without allowing them to profit from the insurance.
7: What is a policyholder? - correct answer -
The individual or entity that owns an insurance policy.
8: Explain the term loss ratio.
A ratio that compares the insurers losses to its premiums earned.
9: What is the difference between a peril and a hazard? - correct answer -
A peril is a cause of loss, while a hazard increases the likelihood of a loss
occurring.
10: What is an insurance policy? - correct answer -
A contract between the insurer and the insured outlining the terms of
coverage.
11: What is the role of an insurance agent? - correct answer -
To sell and service insurance policies on behalf of an insurance company.
12: Define reinsurance.
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