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AINS 21 practice exam 347 Questions and Answers.
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AINS 21 practice exam 347 Questions and Answers.
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AINS 21 practice exam 347 Questions and Answerswhen selecting a distribution channel, which one of the following is important consideration with regard to customer needs and characteristics - ✅
Which of the following statements is correct regarding characteristics of ideally insurable loss exposures - ✅ideally, loss exposures should be spread across a large number of similar exposure units within the same period
The type of insurance that provides periodic income payments to an insured who is unable to work because of sickness or injury is - ✅Disability income insurance
Retention is often used in combination with insurance as a way of treating loss exposures. One of the major downsides of individuals using retention alone is - ✅The potential for financial ruin
A loss exposure is - ✅Any condition that presents the possibility of a loss
Liability coverage for loss exposures arising from a business organizations premises and operations, its products, or its completed work is typically provided by - ✅Commercial general liability insurance
Though premiums are an obvious cost of insurance, many insureds believe that are too high because
- ✅Benefits are intangible until loss occurs Insurance is not the only risk management transfer technique. When circumstances are appropriate, transfer can be accomplished through - ✅noninsurance transfer technique
Which one of the following is an example of a fortuitous loss - ✅An unknown vandal spray-paints graffiti on the insured's garage
Which one of the following statements is correct regarding the benefits that insurance provides - ✅Investment income helps keep insurance premiums at a reasonable level
Claim buildup is considered to be among which one of the following costs of insurance - ✅increased losses
The primary role of insurance is to - ✅indemnify individuals and organizations for covered losses
Coverage for money, securities, and other property from various causes of loss such as burglary, robbery, theft, and employee dishonesty typically is provided by - ✅commercial crime insurance
Which of the following is an opportunity cost of insurance - ✅An insureds funds that could be invested elsewhere if purchasing insurance were not necessary
Coverage for miscellaneous types of property such as movable property, goods in domestic transit, and property use in transportation and communication, typically is provided by - ✅inland marine insurance
For insurers to utilize pooling most effectively and prevent catastrophic losses, the insured exposure units need to be - ✅independent Some loss exposures are not easy to retain, avoid, or control. What risk management techniques is frequently used to treat such exposures - ✅transfer
Sometimes the existence of insurance encourages losses. the result of this phenomenon is that in - ✅increases the total cost of insurance
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 - ✅promote risk control
As a single mother on a very tight budget, Ciara is tempted to skimp on her insurance. However, her friend Mehmet tells her not to skimp on insurance, because it will help manage her cash flows. Which one of the following examples best illustrates Mehmet's point - ✅When her car's windshield breaks, Ciara has to pay only $100 of the $600 cost of replacing it
A small business owner concerned about something happening and not being able to work or earn a living for extended period of time due to an accident should purchase - ✅Disability insurance
Adhering to the characteristics of an ideally insurable loss exposure in selling insurance help assure that - ✅The insurer is able to charge a premium that the insured can afford to pay
Which of the following statements is correct with regard to risk and ideally insurable characteristics of loss exposures - ✅indemnification is the process of restoring an insured to pre-loss financial condition
Which one of the following statements is correct - ✅insurers investment income helps keep premiums at reasonable level
Which one of the following statements is correct regarding characteristics of ideally insurable los exposures - ✅Ideally, loss exposures should be spread across a large number of similar exposure units within the same period
Which one of the following is an operating cost of insurers - ✅Producers commissions
One of the costs of insurance is said to be opportunity costs. this means that if capital and labor were not being used in the insurance business, they could be used elsewhere and making other productive contributions to - ✅Society
Private insurers are reluctant to provide windstorm insurance on coastal properties. This is because the loss exposures fail to meet the criteria that ideally insurable exposures must be - ✅Independent and not catastrophic
Sally is a recent college graduate who lives in the suburbs and drives to work daily in the city. she recognizes that owning a car creates both property damage and liability exposures for her and at the
same time she has the burden of student loans. For someone in Sally's circumstances the most particular risk management technique for dealing with her auto related loss exposures is - ✅Risk transfer
Another name for liability insurance is - ✅third party insurance
A homeowners insurance policy typically includes - ✅both property and liability coverage
which one of the following statements is true - ✅Mutual insurance include some large national insurers
An insurer that was formed for the purpose of earning a profit for its stockholders is a - ✅Stock insurer
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