AINS 101 SIMULATED EXAM WITH
ANSWERS
Exclusive agency is contracted to sell insurance for one insurer
or group of insurers - CORRECT ANSWER-The difference
between an independent agency and an exclusive agency is
that an
Insurance shortages - CORRECT ANSWER-Destructive
competition in the...
Exclusive agency is contracted to sell insurance for one insurer
or group of insurers - CORRECT ANSWER-The difference
between an independent agency and an exclusive agency is
that an
Insurance shortages - CORRECT ANSWER-Destructive
competition in the insurance industry could result in
Veronica directly contacts Maria for guidance on how to report
a stolen car, Maria provides that, and claims rep Sean takes
over after an introduction from Maria - CORRECT ANSWER-
Maria is a new producer who wears many hats when forming
relationships and then serving her established customers. In
this capacity, which one of the following scenarios most
accurately describes her ongoing work wearing the hat of
"claims handler"?
$350 Replacement cost - Depreciation - CORRECT ANSWER-
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?
, Underwriting authority reports - CORRECT ANSWER-All of the
following are sources of underwriting information to evaluate an
insurance submission, EXCEPT:
Implemented risk management techniques may prove to be
ineffective or become obsolete - CORRECT ANSWER-Which
one of the following best explains why producers should be
alert to changes in clients' loss exposures?
Field Underwriter - CORRECT ANSWER-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
Balance sheet - CORRECT ANSWER-Rachel is considering
investing in the stock of an insurance company. Which one of
the following is likely to provide the best indication of the
insurer's financial position at this point in time?
Support producers and insureds - CORRECT ANSWER-At
Greenfield Insurance Company, Bernadette and Rachel are
corporate underwriters, and Tomas and Jose are field
underwriters. All of the following are underwriting activities
typically performed by corporate (or staff) underwriters like
Bernadette and Rachel, EXCEPT:
Large number of similar exposure units - CORRECT ANSWER-
Oscar's custom-built vehicle looks like a sausage sandwich on
wheels. He plans to drive it to special events at schools around
the country where it will serve as a mobile billboard to promote
his product. Oscar is surprised to learn that insurers are
reluctant to insure his vehicle because it fails to meet one of the
ideal characteristics of an insurable risk. Which characteristic is
Oscar's vehicle least likely to meet?
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